Non Tariff Measures
Non Tariff Measures (NTMs) are all measures other than normal tariffs namely trade related procedures, regulations, standards, licencing systems and even trade defense measures such as anti-dumping duties etc which have the effect of restricting trade between nations. Some of these measures could be justified under the provisions or the exceptions provided under the various multilateral agreements governing international trade. On the other hand, certain non tariff measures which cannot be justified under any of these legal provisions are normally termed as non tariff barriers (NTBs).
With the lowering of tariffs across the globe, NTMs have come into prominence with Members using these measures to erect entry barriers for goods and services. It is therefore, not surprising that the developed countries with relatively lower tariffs are the more prolific users of NTMs / NTBs especially to keep out developing country exports. The details of some of the major NTMs that are maintained against Indian exports are as under:
Country Item Details of NTM
United States Marine products Increased inspections under the Bio-Terrorism Act, Customs Bond requirement, Mandatory labeling discriminating “farm raised” and “wild” with punitive fines and non-recognition of EIC certification.
United States Paper products Non scientific quarantine restrictions, customs surcharges, eco labeling stipulations and food safety/ health standards exist on paper products exports.
United States Tobacco A TRQ regime restricts imports.
United States Food products Detailed labeling requirements are stipulated with extensive product and content description.
Argentina Processed Marine Products, Matches, Insecticides, Fungicides, Plastics, Rubber, Leather, Wood & Paper Products, Textiles & Clothing, Headgear, Footwear, Articles Of Iron & Steel, Mechanical & Electrical Machinery, two wheelers, optical instruments, furniture, toys, miscellaneous manufactured