What is the difference between a tariff and a non-tariff barrier?

A tariff is a tax on imports that raises the landed cost. A non-tariff barrier is any other government measure — a quota, license, standard, or procedure — that restricts or conditions trade without using a tax.

Are non-tariff barriers legal under WTO rules?

Generally yes, when they serve a legitimate purpose and are applied fairly. The TBT and SPS agreements permit regulation but require that measures be necessary, science-based or standards-based, and not disguised restrictions on trade. Outright quotas are more strongly disfavored under GATT Article XI.

Why are non-tariff barriers harder to manage than tariffs?

Because they are not a single calculable figure. They require testing, certification, licensing, or documentation that varies by market and product, so the cost appears as time, uncertainty, and the risk of denied entry rather than a published rate.

Can a country be forced to remove a non-tariff barrier?

Through WTO dispute settlement, a measure found inconsistent with the agreements should be brought into compliance. In practice, enforcement is currently slowed by the lack of a functioning Appellate Body, so many barriers are addressed through negotiation instead. Mapping the non-tariff barriers on a given product and lane is exactly the kind of work that belongs before the first shipment, not after a detention. Reidel Law Firm helps importers and exporters identify and plan around tariff and non-tariff exposure on flat-fee terms. Get an import compliance memo.

INTERNATIONAL TRADE LAW

Non-Tariff Barriers in International Trade Law

Schuyler 'Rocky' Reidel July 13, 2023 5 min read

A non-tariff barrier is any government measure other than a tax that restricts or conditions trade — a quota, a license requirement, a product standard, or a customs procedure. International trade law