In: Economics
What are 2 examples of non-tariff barriers that are considered to be the result of political policy and how can the WTO enforce regulations against non-tariff barriers?
The two examples of non-tariff barriers are import bans and quota that restrict the import from specific country or the group of countries. It is the part of trade policy adopted by the government of the country in the name of protecting the domestic industries, national security concerns and many others. These policies are considered to be political in nature, because these barriers help in fulfilling the promises made during the elections. it also helps to fulfill the promises of protecting the jobs in the country and bring non-tariff measures. Besides, it also reflects the approach taken up at the international political platform. For example, USA continued to put ban on imports from Cuba in the past due to its so-called allegiance with the communist forces. Now, there is an import ban from the country of Iran under the proclaimed suspicious allegiance in nuclear proliferation related issues.
WTO has its own set of rules and
guidelines, with that all the member countries have to adhere with
that rule. These rules specifically work to eliminate anti-tariff
related barriers, streamlining of the procedures and import &
export related work, periodical reduction in quotas and duties as
well as standardization of internal laws that should make a level
playing field for everyone. These guidelines are to be accepted by
all the member nations and can get support by WTO if any member
nation needs it. If a nation does not accept to do it, then WTO has
the support of other nations to put pressure upon the particular
nations in terms of countermeasures that can severly impact the
concerned nation. Besides, negotiations at different levels at WTO,
also takes place to resolve the issue and the concerned nation
works according to the rule and guidelines to get
disciplined.