Non-Tariff Measures (NTMs)

Non-Tariff Measures (NTMs) refer to regulatory and policy mechanisms other than tariffs that alter international trade.

Types of Non-Tariff Measures:

1. Import Quotas: Restrictions on the quantity of a certain good that can be imported. Examples include specific limits on steel and sugar imports.

2. Subsidies: Government financial assistance to local businesses, such as agricultural subsidies and renewable energy grants.

3. Export Restraints: Limits on the amount of goods a country can export to another country, often seen with agreements like voluntary export restraints on cars.

4. Licensing Requirements: Necessities for obtaining a license to import or export certain goods, such as pharmaceuticals and military items.

5. Standards and Regulations: Mandated compliance with safety, health, and environmental standards, like those set for electronics and food products.

6. Customs Procedures: Administrative protocols for valuation, classification, and clearance of goods. Examples include detailed customs documentation and inspections.

7. Anti-Dumping Measures: Imposed duties to counteract import prices below fair market value, such as duties on imported textiles and chemicals.

These measures can impact the flow of trade by increasing costs, creating delays, or restricting quantities.