KEMBAR78
How Tariff and Non | PDF | Tariff | Non Tariff Barriers To Trade
Scribd
Upload
52 views2 pages

How Tariff and Non

Tariff and non-tariff barriers can affect exports. Tariffs are taxes imposed on imported goods to protect local industries and raise government revenue, though economists argue they ultimately hurt consumers. Non-tariff barriers include quotas, quality standards, licenses and import bans used for the same protective purposes. Both types of barriers can hurt national economies in the long run by shielding uncompetitive industries and wasting resources. The World Trade Organization aims to lower trade barriers with 153 member countries, but implementation remains imperfect. Exporters should target markets where imports face fewer policy discouragements.

Uploaded by

Sumit Malik
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
52 views2 pages

How Tariff and Non

Tariff and non-tariff barriers can affect exports. Tariffs are taxes imposed on imported goods to protect local industries and raise government revenue, though economists argue they ultimately hurt consumers. Non-tariff barriers include quotas, quality standards, licenses and import bans used for the same protective purposes. Both types of barriers can hurt national economies in the long run by shielding uncompetitive industries and wasting resources. The World Trade Organization aims to lower trade barriers with 153 member countries, but implementation remains imperfect. Exporters should target markets where imports face fewer policy discouragements.

Uploaded by

Sumit Malik
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 2

How Tariff and Non-

Tariff Barriers Can


Affect Your Exports
By William King

Article Word Count: 419 [View Summary]


Comments (0)

Tariff and non-tariff barriers can affect your export business. In most countries, the
governments impose these trade barriers and the general purpose behind them is to limit (or
sometimes totally ban) the imports of some specific product. By imposing trade barriers, the
governments are looking to achieve some or all of these economic targets.

" Encouraging domestic production


" Protecting local employees
" Increasing revenues
" Reducing consumption and reliance on exports

Whether they are able to achieve these targets or not, one thing is for sure, these trade barriers
are going to hurt your business, if you are looking to export to that country. Read a little to
get an idea of what tariff and non-tariff barriers are.

Tariff:
In simple words, this is the tax imposed on imported goods. In most cases the tax is collected
at the moment some shipment arrives at ports. Governments normally force tariffs (or excise
duty) to protect local industries and to raise their revenues, although many economists have
debated against it. According to them these methods are faulty, because in the end it's the
consumer who suffers at the hand of high prices and inflation. As an exporter you'd be better
off going for some country with minimum tariffs because you will loose the low cost
advantage once you have to pay these taxes. Tariff allows local manufacturers to offer lower
prices as compared to the imported items (still the customers are paying more than what they
should be paying for this quality).

Non-Tariff Barriers:
All other restrictions on trade except tariffs are known as non-tariff barriers. These rules,
regulations or policies are used for the same purposes (i.e. to restrict imports and protect local
industries), however they cannot raise any revenue for the host country. Some of the common
non-tariff barriers are quotas, quality standards, complex regulations, import license or import
bans.

Both tariff and non-tariff barriers can ultimately hurt the national economy in the longer run,
they provide shield to even those under performing industries and manufacturers who are not
competitive at all, hence wasting the country resources and hurting consumers. World Trade
Organization has been established in order to lower trade barriers all over the world, and to
improve transparency and non-discrimination in international trade. 153 members have
joined till now, although no member country has shown total commitment in implementing
rules and regulations that are decided at various conferences. Still as an international exporter
you should try to target those foreign market where imports are not discouraged in
government policies

You might also like