Non-tariff barriers to trade
Under non-tariff barriers are understood indirect protectionist measures of the foreign trade restriction that are not duties, levies or export subsidies. They barrier to market access for foreign providers.
Classification
Non-tariff barriers ( NTBs = Non -tariff barriers to trade ) include not only tariff barriers to the instruments of trade policy. While tariff barriers to the import mainly by tariffs ( tariff engl. = inches ) is affected, get a number of other tools to use in NTBs. In addition, a number of social and environmental regulations have trade-restrictive effects.
Background
NTBs played in trade policy until the 1960s/70s no significant role. While they existed in the countries in certain forms and to some extent previously, but gained in importance those barriers only since the 1970s. Trigger for the public debate was the proposed tariff reduction. Thus, the non-tariff trade barriers obtained only after substantial elimination of customs duties on trade policy - as so-called " second layer of protectionism " - important. Governments could no longer rely on tariffs to protect certain national industries from foreign competition. Thus, since the 1970s, more and more non-tariff barriers were erected. Also contributed to the increasing number of direct investments - coupled with the ever-growing trade in services - much to the importance of national regulations with. These are used to restrict the establishment of subsidiaries abroad. Previously, this was regulated by tariffs.
Despite an absolute prohibition for construction and maintenance of non-tariff barriers to trade through the World Trade Organization ( WTO), this to a great extent as a substitute for tariff trade barriers (especially customs) were introduced. Especially developed countries often use high standards ( see, for example, the European banana regulation) to discriminate against foreign suppliers.
Formally, however, non-tariff barriers need not be aligned with the restriction of competition. Supporters argue rather that these barriers are designed to protect the consumer from inferior or bad product by norms and standards.
Forms of non-tariff barriers to trade
Import quotas
By setting import quotas a state has the option to limit the import of goods in terms of quantity.
- Example: import quota for cheese in the United States:
The restriction of imports through quotas leads to price increases of imported goods in the importing country. The odds bring the state usually no revenue, but instead flow to holders of import licenses as gains ( quota rents ) to.
Voluntary export restrictions
Under voluntary export restrictions, trade quotas are to be understood, to be determined by export countries themselves. This is done mainly to pressure from the importing country. Through voluntary export restrictions, export country tries to prevent severe measures such as quotas or import prohibitions on the part of the importing country. The effects are similar to those of import quotas and go with producer profits, consumer losses and welfare losses associated.
- Example: Japanese cars
Local content clauses
The rules of local content clauses is to ensure that a certain proportion of a final product of domestic production comes from. The local content laws have been applied mainly in developing countries, whose industries were geared to pure final assembly. The target was a transition in the production of intermediate products. An entity meets the local content clauses if it decreases the obligatory share of intermediates from domestic production. The company is not forced to use these themselves, but can also export the intermediate products. Through the use of local content clauses the State neither revenue nor flow rate annuities. For example, motor vehicles completely knocked down or semi knocked -down kit - - delivered to a country and there assembled, there to generate a local value. However, it would be significantly less expensive to export finished cars instead of the kits - the benefit is offset by a significant effort. Often, industrial policy and prestige aspects play a major role in such projects.
Other forms
The above are the most important and best-known non-tariff barriers to trade. There also exist a number of other NTBs. Here mention inter alia, technical norms and standards ( cf. DIN), import licenses, packaging and labeling requirements ( Made in.. ), Psychological influencing the consumers to buy local products, social and environmental standards, anti-dumping rules, tendering procedures of orders (especially in construction ), preferences in government procurement, import deposits, with which time between application for and payment of a transaction is artificially prolonged, threats of trade policies (tariffs, etc. ) as well as discrimination in customs clearance.
With respect to trade in services and foreign direct investment rules on value and volume of transactions, provisions on the percentage of foreign capital exist. Further, the access is made more difficult by certain requirements and qualifications for foreign service providers.
WTO rules on non-tariff barriers
In order to promote international trade, the World Trade Organization ( WTO), it has taken on the task of reducing trade barriers of all kinds. The relevant WTO rules must be observed by all members in their design of trade policy. Thus, with regard to discriminatory or protectionist NTBs an absolute ban in the WTO agreement included. Anchors are the provisions to reduce unjustified NTBs in various WTO agreements on trade in goods and GATS for the provision of services. Likewise, numerous exceptions therein are regulated, which allow certain state NTBs. So rules are intended to protect the life and health of humans, animals and plants that public morality and order and national treasure or exhaustible natural resources allowed in part. The prerequisite is that the handelsschonendste agent is used, ie the State measure must be necessary, non-discriminatory and proportionate ( " eg no import ban if the information would achieve by labeling the same purpose "). NTBs that are generated by private individuals or companies, such as cartels, are not regulated by the WTO.