nontariff

Nontariff refers to policies and measures that affect international trade without imposing tariffs or duties. In economics and policy discussions, the term is most commonly encountered in the form non-tariff measures (NTMs) or non-tariff barriers, which encompass a broad range of government actions aimed at influencing trade flows.

NTMs cover various instruments, including quantitative restrictions such as import quotas and prohibitions, licensing requirements, and other administrative procedures that can delay or restrict shipments. They also include standards and technical regulations, conformity assessment, labeling and packaging rules, and sanitary and phytosanitary measures designed to protect health, safety, or the environment. Additional examples include subsidies, state trading or procurement rules, export controls, and other regulatory or administrative barriers that restrict or shape trade. The distinction between NTMs and tariffs is that NTMs operate through rules and procedures rather than direct duties on imports.

Purpose and effects: NTMs are often justified on legitimate grounds such as consumer protection, public safety, environmental protection, or national security. However, they can raise the cost of imported goods, create compliance burdens, lead to delays, or distort competition. Their impact on trade depends on design, transparency, and how predictable and proportionate the measures are. Transparent and well-implemented NTMs can minimize unnecessary frictions, whereas opaque or overly restrictive NTMs can significantly hinder market access.

Policy context: NTMs are a focal point in international trade discussions and research. They are monitored by organizations like the World Trade Organization, which works to increase transparency and negotiate disciplines. Analysts assess NTMs by product, sector, and country to understand their prevalence, economic impact, and implications for trade liberalization and regulatory cooperation.