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Non-tariff barriers in global trade - Coggle Diagram

- - - - All mandatory requirements and rules and regulations imposed by the governments in regards to import or exporting are NTMs
  - - - China uses them to target Japanese cars
        
        Import delays
        
        Restricted imports
        
        Example: Australia has restricted import on cultural heritage good from PNG
  - - - Broad difference between Tariffs and NTM's.
        
        The distinction in the treatment of these two forms of protection is well founded. Tariffs are a flexible instrument: they permit imports to grow as costs and prices decline abroad and income and demand rise at home. By contrast, QRs impose rigid limits on the volume of trade. Tariffs allow trade to shift among countries in accordance with comparative advantage whereas QRs tend to freeze trade into established channels. Tariffs generally apply equally to all foreign countries whereas import quotas are likely to be discriminatory in purpose and effect. The degree of protection is overtly defined by the rate of duty whereas it is hidden when QRs are used.
        
        https://documents1.worldbank.org/curated/en/331121468179958694/pdf/ERS10000The0GA00balance0of0payments.pdf
- - - - “A quantitative restriction on trade in goods, also referred to as a ‘QR’, is a measure that limits the quantity of a product that may be imported or exported. A typical example of a quantitative restriction is a measure allowing the importation of a maximum of 1,000 tons of cocoa powder a year or a measure allowing the importation of a maximum of 450 tractors a year. While usually based on the number of units, weight, or volume, quantitative restrictions may also be based on value, for example, a limit on the importation of flowers to the value of €12 million per year.”
        
        There are different types of QR's
        
        (a)Prohibition or ban on the importation of a product
        
        such a prohibition or ban may be conditional or absolute ie where certain defined conditions are not fufilled
        
        Covid- Restrict the export( Or is it just import) of medical products to alleviate stress on country during the pandemic.
        
        Covid 19 and restrictions of importation
        
        Albeit small, countries also imposed trade restricting measures on import, most of which were the prohibition due to different reasons. One is A11 Prohibitions for sanitary and phytosanitary reasons. For example, the Russian Federation temporarily restricted import of exotic and decorative animals and live fish from China because of their potential risk of carrying the COVID-19 virus.
        
        (b) Import quota
        
        measure that indicates the quantity that may be imported or exported
        
        (c) Import or export licensing
        
        E313 Temporary prohibition, including suspension of issuance of licences for
        
        economic reasons. For example, Colombia limited import of fuel ethanol because reduced demand during
        
        the lockdown increased the ethanol reserves, pushing its storage capacity to the lim
        
        (d) 'other' quantitive decisions
        
        Government procurement
        
        Voluntary export restraints
        
        “For an illustrative list of quantitative restrictions, refer to the 2012 WTO Decision on Notification Procedures for Quantitative Restrictions, also referred to as the ‘QR Decision’.8”
        
        In principle these measures are in principle prohibted by the GATT but there are exemptions which are utilised to push through these measures
        
        The provisions of paragraph 1 of this Article shall not extend to the following:
        
        (a) Export prohibitions or restrictions temporarily applied to prevent or relieve critical shortages of foodstuffs or other products essential to the exporting contracting party;
        
        (b) Import and export prohibitions or restrictions necessary to the application of standards or regulations for the classification, grading or marketing of commodities in international trade;
        
        (c) Import restrictions on any agricultural or fisheries product, imported in any form,* necessary to the enforcement of governmental measures which operate:
      - https://unctad.org/system/files/official-document/ser-rp-2021d3_en.pdf
    - - Transparency
        
        Restrictions on imports due to QR are not necessarily immediately clear and visible in the sense that they invariably impose increased fees and costs yet with tariffs it is clear where and why increased fees come from for particular goods
        
        Beijing in 2020 had imposed tariffs of above 200% on Australian wine products, at the height of the diplomatic dispute between the two countries. The Australian government statement said this had “effectively made it unviable for Australian producers to export bottled wine to that market” – scuppering an export market worth $1.1bn to Australia in 2019.
      - Infate price of goods
      - They have a prejudicial effect on foreign entities trying to impose themselves on the market in they are unable to compete.
      - Susceptible to Corruption
        
        Quotas inevitably involve the regulation of domestic business by public officials. Because of the great power inherent in the setting and allocation of quotas, they involve a dangerous temptation to official corrulption. On the other hand, legislatures have, for historical reasons, been reluctant to surrender their authority over tariffs to administrative officials.
      - Further implications in zotero pagge 80
  - - - Technical barriers to trade
      - Sanitary and phyto sanitary measures
      - Custom formalities and procedures
      - Government procurement laws and pratices
      - lack of transparency