Non-tariff barrier (NTB)

Definition and classification

Non-tariff barriers (NTBs) encompass all measures, other than customs duties, that restrict, distort, or prevent international trade. They have become the primary obstacle to trade as tariffs have fallen through WTO negotiations.

Typology of NTBs

NTBs are classified by UNCTAD into several categories:

• Technical measures: technical regulations (TBT), SPS measures, inspections, certifications
• Non-technical measures: quotas, import licences, reference prices, export restrictions
• Financial measures: advance payment requirements, multiple exchange rates
• Competitive measures: state monopolies, discriminatory public procurement
• Facilitation measures: complex customs formalities, administrative delays

Economic impact

According to European Commission estimates, NTBs can represent a tariff equivalent of 10-20% for industrial goods and up to 50% for agricultural products. SMEs are particularly affected due to the fixed cost of compliance.

Recourse and solutions

• The WTO offers mechanisms to challenge unjustified NTBs (TBT and SPS agreements, dispute settlement)
• Modern free trade agreements include detailed chapters on NTB reduction
• The European Commission's Market Access Database catalogues NTBs reported by European businesses in third countries