At a glance, NTMs contain specific policies countries apply to goods or commodities traded globally. They are compulsory regulations chartered by the government of the exporting, importing, or transit country. Unlike regular customs tariffs, NTMs are difficult to quantify and differentiate.
The International Trade Center (ITC) lists down the most common NTMs countries issue, as follows,
Technical barriers to trade (TBT),
Sanitary and phytosanitary (SPS) measures,
Certification or testing requirements,
Quotas and price controls,
Import or export licenses,
Additional taxes and surcharges,
Rules of origin
The majority of NTMs intend to protect the environment or public health. But the misapplication of them is burdening exporters and importers in developing and least developed countries who struggle to cope with their complicated requirements. As unveiled by the latest research, they are also becoming exceedingly restrictive.
For example, when a country imposes an NTM that restrains pesticide residuals in exported food, it addresses a fundamental objective to protect public health and nutritional values. The NTM can instruct the exporters of the product to comply with additional provisions such as quotas, price controls or extensive testing certificates.Some exporters may see that trading with the country is no longer profitable and decide to withdraw. Consequently, this NTM may limit further trading ventures, decreasing revenue in exporting countries, specifically affecting SME exporters as they cannot grab opportunities offered by the global economy. It also creates overpriced consumer imports, a daunting concern for developing and least developed countries.
United Nations Conference on Trade and Development (UNCTAD) stated that numerous pressures of the COVID-19 pandemic had created approximately 300 NTMs worldwide as of March 15, 2021. Some were formed to control shortages of essential goods and with more stringent conditions to secure the quality and safety of commodities and materials. On a happier note, some NTMs were issued to promote global trade, including eliminating many taxes on imported products and relaxing sanctions and licensing requirements.
Organisations like UNCTAD and ITC are developing programmes to improve transparency and assist countries with explicit knowledge of NTMs encountered by their traders in the global market.
