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Non-tariff Barriers to Trade Main Contents 1. Definition 2. Effects of NTBs to trade 3. Types of NTBs 4. Agricultural Products Definition Measures taken to impede importing except tariffs, more than 1000 types, can be indirect direct. Effects of NTBs to Trade Similar to those of tariffs inefficient distortions which reduce potential gains from trade Types of NTBs 1. Quotas 2. Buy National Restrictions 3. Customs Valuation 4. Technical Barriers 5. Subsidies, Countervailing Duties Antidumping Legislation Quotas Historically, the GATT has prohibited import quotas except on agricultural products as emergency measures when a country has short-run balance of payments problems Quotas usually countries have circumvented this most notably for textiles, footwear, automobiles by negotiating ‘voluntary export restrain agreements’ in general, business would rather be protected by quotas than tariffs, because it is elastic. Buy National Restrictions also can be called ‘government procurement policies of discrimination’ ‘Buy national’ regulations require national governments to give preference to domestic producers, sometimes to the complete exclusion of foreign firms. Buy National Restrictions some countries have the discrimination policies, such as ‘Buy American’ issued in 1933. during the Tokyo round of the GATT negotiations, a mild code to open up government contracts to foreign suppliers was negotiated in 1973-1979. now at least governments must publicize large procurement contracts accept foreign bids, but are still not required to make public the winner’s bid price or its basis for winning. Customs Valuation The method by which a customs officer determines the value of an imported good for the purpose of levying an ad valorem tariff. The appraisal of the worth of imported goods by customs officials to determine the amount of duty payable in the importing country. The GATT Customs Valuation Code obliges governments that sign it to use the trans
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