Ten Examples of Non-Tariff Barriers

hi there this is a short topic video focusing on protectionism import controls and in this video we're going to focus on non-tariff barriers so a non-tariff barrier on NTB for short is any policy measure any form of protectionism other than an import tariff that can have an impact on trade flow between countries one key trend to bone mind is that the average import tariffs in the world economy how fallen that's been one aspect of globalisation but so non-tariff barriers have become much more common many many examples of non type powers you can find if you just google them and find the topical news example so I'm going to take you through some examples of non-tariff barriers here are ten separate examples you might want to use for your notes the obvious form of non-tariff barrier is a quota an import quota now quota is a quantitative or volume limit on the quantity of the amount of imports allowed into a country or it could also be a limit to the value of imports permitted in a given time put so for example until 2014 South Korea maintained quite strict quotas on imported rice but actually now so we placed a quota with an import tariff keeping by the quota of course it doesn't normally bring in any tax revenue although of course they could lead to increased domestic production and taxes in the long run a second form of non-tariff barrier is a V er voluntary export restraints decide to agree to limit the volume of their exports to one another apps over a year this is so less common than it used to be and of course it's quite difficult to enforce intellectual property laws are important form of non-tariff barrier so this includes anything like patents and Trademark and copyright protection essentially protecting domestic ideas and products technical barriers to trade well this covers a multitude of things it's basically any barrier that includes things like product labeling rules tough health and safety standards the key thing about any of these kind of involved and poor health technical barriers is that they increase the compliance costs of getting goods to market so they're monitoring costs and export agencies quite interesting that the big vertically globally global companies can normally cope with these technical barriers but it's less easy for developing countries to be able to overcome these particular barriers preferential state procurement policy is where the government or the state tends to favor domestic local businesses when they're finalizing the contracts four key items of state spending that could be a infrastructure project it could be some new defense equipment a government send a favor domestic producers another form of help for domestic firms is a subsidy a payment to encourage domestic production of course by lowering their costs and this could come in two form for example of state aid for businesses making losses or it might be an example could be an export subsidy paid to a producer it could be just a just a normal domestic subsidy so for example the u.s. cotton industry has very high levels of cotton subsidy so subsidies are basically a way of reducing the costs of domestic producers for it and then it might also be an export subsidy which is where a government subsidizes the value of the exports sold by a country so for example India has an export subsidy to encourage exports of more sugar 7 is financial protectionism this is why beginning into some murky areas where government constructs banks to give priority when they're allocating credit to domestic businesses there's other kinds of murky or hidden protectionism so for example indirect discrimination begins foreign workers there could be limits to migrants he flows for example discriminates against particular investors and traders exchange controls are quite important exchange controls when government's limit the amount of capital that can flow across national borders also known as capital controls and you can make an for saying that deliberate intervention in the currency markets for example to bring about a competitive currency devaluation could also come under the category of non-tariff barrier quite a few countries now moving towards managed exchange rates the liberty' temps to bring down their currency as a way of a restoring or stimulating competitiveness for example China's devaluation of the yuan in 2015 keep on the course that non-tariff barriers often invite retaliation so for example we've just had a recent trade spat between Canada and United States over the vexed question of meat labeling regulations good example of a technical buy by the West sure mentioned in the before one of my favorite ones is Costa Rica banning old vehicles so there we go ten examples for you of non-tariff barriers this is a particular form of protectionism and it's an increasingly significant one in the world economy thanks for joining in

6 thoughts on “Ten Examples of Non-Tariff Barriers

  1. If you find this video helpful, don't forget to like it! and SUBSCRIBE TO the tutor2u Channel to be alerted as soon as we've uploaded new topic videos like this one.

  2. Plzzzz bro …..use yr voice ……….which is original …….becoz Apne aap ko froeign bnane ke chkr me aap ne aapni video khrab kr li….

Leave a Reply

Your email address will not be published. Required fields are marked *