NtMs

NTMs, or non-tariff measures, are policy instruments used by governments to regulate international trade other than traditional tariffs. They encompass rules, standards, and procedures that can affect whether goods cross borders, the costs of compliance, or the speed of delivery. NTMs may pursue legitimate objectives such as protecting health and safety, environmental protection, consumer interests, and national security, or reflect administrative procedures that influence trade costs.

Common categories include import licensing and quantity controls; technical measures such as product standards, testing, certification, labeling and packaging requirements; sanitary and phytosanitary measures; rules of origin; export restrictions; and border procedures and documentation requirements. NTMs can be applied in targeted or general ways and may be automatic or discretionary, with varying degrees of transparency.

Impact and policy relevance: NTMs can raise costs, cause delays, and affect the competitiveness of exporters, especially small and medium-sized enterprises. They can help safeguard public objectives but may also serve as protectionist tools if used unnecessarily or opaquely. Measuring NTMs is complex due to diverse instruments and differences across sectors and countries.

Policy context: International organizations monitor NTMs and provide data and analysis through databases and indices. Examples include the OECD Trade Restrictiveness Index and UNCTAD/WTO datasets. Reform efforts emphasize greater transparency, streamlined border procedures, risk-based conformity assessment, and mutual recognition agreements to reduce unnecessary friction while preserving legitimate policy objectives.