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Non-tariff barriers (NTBs)
Context
US Vice President JD Vance urged India to drop non-tariff barriers, give greater access to its markets. Indian products too face these issues in the international markets including in America, EU, China, Japan, and Korea.
What are non-tariff barriers (NTBs) in the international trade parlance?
- Non-Tariff Barriers (NTBs) are trade restrictions that do not involve traditional taxes or tariffs on imports and exports.
- These include regulations, standards, procedures, certifications, quotas, import licensing, subsidies, testing requirements, and more.
- NTBs arise when these rules go beyond reasonable justification—they may discriminate against foreign goods, create delays, or raise costs without clear health, safety, or environmental reasoning.
- Example: An Indian fruit exporter may be required by the EU to prove compliance with specific pesticide residue standards through costly lab tests. Even a small deviation or delay in paperwork can lead to shipment rejection.
- It is essential to differentiate between non-tariff measures (NTMs) and NTBs.
- Non-Tariff Measures (NTMs) are legitimate regulations for public health, safety, and environmental protection. NTM may be
- “Technical” measures like regulations, standards, testing, certification, pre-shipment inspection
- “Non-Technical” measures like quotas, import licensing, subsidies, government procurement restrictions, etc.
- NTBs are unreasonable or opaque versions of NTMs that appear to unfairly block trade.
- Non-Tariff Measures (NTMs) are legitimate regulations for public health, safety, and environmental protection. NTM may be
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