Non-tariff barriers to trade are also known as non-tariff measures. They are trade barriers restricting the import and export of goods and services through alternative mechanisms other than the imposition of tariffs. Non-tariff barriers are therefore international trade barriers which do not involve import or export duty (Ray, 1989) . Non-tariff barriers include subsidies, embargo, standards tariffs, quotas, licenses, voluntary export restraints, sanctions, custom delays, import quotas, technical barriers and other systems implemented to impede or prevent trade.
Licenses
Licenses are the most common regulation instruments. A state issues a permit for foreign trade transaction. For instance, general licenses permit the unrestricted importation and exportation of goods listed in a restricted time period. On the other hand, one time licenses allow the trade of a certain product import or export (WTO, 2017) .
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Quotas
Quotas are typically used to specify the limit for goods and services that are permitted for to be imported in a country without restrictions until the specified limit. In addition to quantity, quotas are also set within specific time frames. Quotas can be unilateral, levied without negotiations between exporting and importing country or bilateral within an agreement.
Embargoes
These are government orders restricting international trade with a specified country. An embargo is usually formed when there is an unfavorable political or economic barrier between countries. Embargoes are designed to isolate certain countries from trade, restricting anyone from exporting goods to the target nation.
Sanctions
A country imposes a sanction on another country with an objective of limiting its trade activity. Some of the sanctions include increasing administrative actions or additional customs or trade procedures to limit the target nation’s ability to trade. A country is basically imposed with commercial or financial penalties by one or more countries (WTO, 2017) .
Voluntary Export Restraints
These are nontariff barriers utilized by export countries to set limits on the amount of goods/services to be exported to particular countries. Voluntary export restraints are based on availability and political alliance
References
Ray, E. J. (1989). Tariff and nontariff barriers to trade in the United States and abroad. The Review of Economics and Statistics , 161-168.
WTO. (2017). Non-tariff barriers: red tape, etc . Retrieved from World Trade Organization: https://www.wto.org/english/thewto_e/whatis_e/tif_e/agrm9_e.htm
