📋 Administrative Barriers
Administrative barriers.
- Health and safety regulations — requiring imported food to meet strict standards that may differ from exporting country norms.
- Environmental standards — banning imports that don't meet domestic environmental rules.
- Labelling and packaging requirements — costly compliance for foreign firms.
- Customs procedures — excessive paperwork, inspections, and delays at borders.
- Government procurement policies — 'buy domestic' rules that exclude foreign firms from government contracts.
Real-world example: Japan has historically used complex product standards and testing requirements to limit imports of foreign consumer electronics and cars — technically legal under WTO rules, but effectively protectionist.
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🤝 Other Forms of Trade Protection
Voluntary export restraints (VERs)
Voluntary export restraint.
Despite the name, VERs are rarely truly voluntary. They function like quotas but are imposed by the exporting country. The WTO has banned new VERs, but some still exist informally.
Other measures
- Intellectual property laws — can be used to block imports of goods that 'infringe' patents.
- Embargoes — complete ban on trade with a specific country (usually for political/security reasons).
- Currency manipulation — keeping the exchange rate artificially low to make exports cheaper (e.g. accusations against China).
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📈 The Rise of Non-Tariff Barriers
While the WTO has successfully reduced tariffs globally, non-tariff barriers (NTBs) have become the dominant form of protectionism in the 21st century.
- NTBs are harder to detect, measure, and challenge at the WTO.
- They can be disguised as legitimate health, safety, or environmental rules.
- They disproportionately hurt developing countries that lack the resources to comply.
- The total effect of NTBs may now exceed the effect of tariffs on global trade.
When evaluating trade protection in essays, don't only discuss tariffs. Mention non-tariff barriers to show broader understanding — examiners reward this.