In: Economics
word:200
does anyone have an example of a non-tariff measure used by the US or one of its trading partners? one reference, please!
Yes, non-tariff measures are used by the United States in case of its import of generic medicines from India.
Generic medicines are the alternate version of the medicines but with the same salt composition and they are equally effective, but it is manufactured at a much lower price because the company producing those medicines didn't have to invest a higher amount in research and development. At the low price, the generic medicines are able to undercut the demand and sell more. United States use non-tariff barriers like following a certain standard in production or following a labor wage equivalent to the US in the generic medicine industries abroad.
India is a developing country and doesn't follow the same standards as the US firm does, those standards followed by India are WTO compliant and valid across the world. But, the US only to protect its pharmaceutical industry uses those standard to ban imports from India. Recently imposing such standard caused some pharmaceutical firms to close their operations or shift their production base to the US.
Another non-tariff barrier which the US was planning to have as part of TPP was following a certain environment guidelines. Only those firms who follow those environment guidelines would be able to export to the US but TPP is dead now.