Trade barrier
A barrier to trade or a trade barrier is a measure that an inhibiting effect on the exchange of goods and services, particularly on trade between States as part of a protectionist attitude of a state. Differences are such protectionist measures in tariff and non-tariff barriers to trade.
- 4.1 Trade creators effects
- 4.2 Handelsablenkende effects
- 4.3 Theory of the second best
- 4.4 criticism
Tariff barriers
Falling under tariff barriers ( quasi-tariff ) barriers to trade
- Import tariffs
- Export duties
- Export subsidies
Non-tariff barriers to trade
Non-tariff (Non- Tariff Barriers -, NTBs ) or non-tariff barriers are trade measures that are mainly oriented towards the obstruction of imports or promote exports of domestic entrepreneurs. These include, for example,
- Technical regulations
- Legislation
- Export restrictions
- Import quotas
- Import taxes
- Import bans
- Export bans
- Special import taxes
- Tax Benefits
- Financial support of domestic companies
- Environmental and social standards
- Quality standards
- Packaging and labeling regulations
- Indications of Source
NTBs can affect international trade heavily ( such as tariffs, too). The removal of these trade barriers and thus the promotion of international trade requires international consensus on the definition and quantification of NTBs.
Integration policy
Economic goal of integration policy is always the liberalization of trade between economies. On such groupings of economies (eg GATT, WTO) should benefit all countries involved.
First stage: free trade zone
The first stage of integration is the union of some countries in a free trade area (eg EFTA - European Free Trade Association, NAFTA - North American Free Trade Agreement ). Hallmark of a free trade zone
- Settlement of trades free of trade barriers within the free trade zone
- Protectionism outward
- Usually different import tariffs of the Member States
Second stage: Customs Union
In the second stage common duties are defined that apply to the import of goods and services from non-member countries in the member countries. Here we speak of a customs union. Characteristics are in addition to those of the FTA:
- Common external tariffs
- Common set restrictions to the outside
Third stage: the Common Market
The next integration step is a common market (eg the EC). It is marked on the license plate of a customs union by addition
- Free factor mobility ( esp. labor mobility ) Prerequisite: uniform establishment and Employment
Fourth stage: The single currency union
A further step towards integration is a unified monetary union (eg European Monetary Union). Are included therein
- Common monetary policy
- Common economic policy
Fifth stage: Political Association
The final step for unification of all economic institutions is the political organization into a new confederation.
The last two steps take over the customs union no other external effects.
Effects of protectionist trade policy
Not every reduction of trade barriers increases the efficiency of international trade. Protectionism arise both trade creation effects ( trade creation effects) as well handelsablenkende effects ( trade diversion effects).
Trade creators effects
By breaking down existing barriers to trade markets are disrupted within a customs union and strengthen the internal market. This trade creation effect always occurs, when are traded through the reduction of tariffs within the region in addition goods that were previously imported from third countries.
Handelsablenkende effects
Through increased tariff walls, markets are completed outside of a customs union over the member countries of a customs union and so difficult for the trade with third countries. This handelsablenkenden effects based on exactly this displacement of supplies from third countries due to the increased trade between the member countries of the Customs Union.
Theory of second best
According to the theory of the second best it can be cheaper in terms of efficiency of global trade, to dispense with the ( partial) reduction of tariffs if the trade creation effects outweigh the handelsablenkenden effects.
Criticism
The WTO, the beige hear a majority of all nations, has set itself the goal of liberalizing trade and for removing barriers to trade in order to ultimately establish a state of global free trade, what will vouch for all nations in their view, more welfare. The WTO policy meant that in the past, in particular tariff barriers to trade have been greatly reduced, which in relative terms the amount has increased in non-tariff barriers to trade, as still states are trying a variety of reasons in different ways to operate more or less protectionism. In particular, the powerful industrialized countries violated WTO law and protectionism, eg in the form of agricultural subsidies (among the EU).
Protectionists counter the liberal attitude of the WTO that trade barriers to protect and thus to promote their own economy are necessary to provide for a pass from the strong competitive pressure of the world market. This is particularly important for developing countries, which have mostly ( almost ) fully liberalized economies, however, with a strategy of global market integration could not claim due to weak their own markets, which is, inter alia, by its weak industrial status due to, mainly because the industrialized countries would further complicate the situation by various barriers to trade of developing countries. Former developing countries such as the People's Republic of China, or the so-called tiger economies were able to strengthen its economy through protectionism or new, not yet competitive industries far as relevant, that they are now to be described as emerging markets or even than developed countries.