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Non-tariff Barriers to Trade

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Chapter Summary

Tariffs and their reduction have played a significant role in the world trade order and its development because of their historical significance. There are other increasingly noticeable state measures which also limit trade. Because of their diversity, they are negatively classified as non-tariff barriers to trade (NTB). These NTBs include quotas, which have the same aim as customs duties, which is to reduce imports through quantitative restrictions. As a result of the debatable economic effects, the world trade order has laid out a strict principle of tariffication, whereby all forms of quantitative restrictions are banned. With the Agreement on Agriculture (AoA) and the Agreement on Textiles and Clothing (ATC) a legal framework was established which allowed for the step by step integration of the goods concerned into the general trade rules of the General Agreement on Tariffs and Trade (GATT).

Keywords: Agreement on Agriculture (AoA); Agreement on Textiles and Clothing (ATC); General Agreement on Tariffs and Trade; non-tariff barriers to trade (NTB); principle of tariffication; quantitative restrictions; world trade order



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