Question

Q5) What are non-tariff trade barriers? Provide a few examples using food products that are imported or exported from the US.

Answer 1

Non tariff barrier are informal restriction imposed by government to reduce the import in international trade.It is other than import duty. Tricks like

1 Subsidies to domestic industries:like free electricity to detroit car compony or like US government giving tax benefit and free insurence to US resident for US made car

2 public procurement: government making rule like US company can fill up only in government scheme

3 Technical barrier to trade :like imported fruit to US must 0% pesticide,imported car must have airbag etc

4 Quota system: fixing amount of good from any particular country like 50 metric tonne steel import to US from any particular country.

5 Sanitary and phyto sanitary measures: food item to have fixed % of pesticide

WTO aim to reduce such non tariff barrier to encourage international trade through its agreement and dispute settlement body.

In 2007 ,India has imposed ban on US poultry ,stating bird flu danger in India.US claim there is no scientific basis and WTO ruled in favour of US