Source: DH
Context: During his visit to Jaipur, US Vice President urged India to eliminate non-tariff barriers (NTBs) to enhance market access for American goods.
About Non-Tariff Barriers (NTBs):
- What are Non-Tariff Barriers (NTBs)?
- NTBs are trade restrictions other than customs duties that hinder the free flow of goods and services across borders.
- They include both technical (e.g., certification) and non-technical (e.g., quotas) regulatory measures.
- Impact on Imports and Exports:
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- Increase compliance costs for exporters through mandatory testing, documentation, and redesign.
- Cause logistical delays at ports due to complex inspections and procedural formalities.
- Reduce the competitiveness of exporters, particularly from developing countries.
- Create uncertainty and risk, deterring small businesses from entering global markets.
- Major Categories of NTBs:
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- Complex Registration Requirements: Exporters must register and submit extensive documentation with destination authorities.
- Stringent Product Standards: Domestic rules may exceed global norms, as seen in pharmaceuticals or food safety.
- Import Licensing: Many items require special or non-automatic licenses.
- State Trading Monopolies: Certain goods are imported only by government agencies under cabinet oversight.
- Technical Barriers to Trade (TBTs): Include domestic certification, labelling, quality control orders, and restricted ingredients in Agri-products.
- Significance of NTBs:
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- NTBs can be used strategically to protect domestic industries without violating WTO tariff rules.
- They often lack transparency, creating an uneven playing field for global trade.
- NTBs, if arbitrary or without scientific basis, violate the principle of fair trade under WTO norms.
