This paper discusses the problems of tariffs and non-tariff barriers (NTF) in international trade.
Written in 2005; 1,015 words; 3 sources; MLA; $ 35.95
Paper Summary:
This paper explains that tariffs, which are taxes on imports of commodities into a country or area, (1) supply income for the government and (2) are extensively used to defend domestic manufacturer's profits from overseas opposition; however, this defense comes at an economic cost to domestic consumers who pay higher prices for import competing goods and to the financial system as a whole. The author points out that, since 1948, when average tariffs on manufactured goods reached 30 percent in most developed economies, these economies sought to reduce tariffs on manufactured goods through numerous rounds of discussions under the General Agreement on Tariffs Trade (GATT). The paper relates that many non-tariff barriers, such as administrative refinement (arbitrary tariff classification), quantitative limitations (quotas and embargoes) and customs management (uplifting invoice value) are especially damaging to exports from developing countries especially the least developed countries.
From the Paper:
"Economists and trade experts have been trying to certificate the occurrence of NTBs and are also struggling with the trickier task of shaping the particular financial consequence of a number of national or restricted requirements and regulations on limiting imports. Non-tariff barriers may comprise anti-dumping measures, new technological standards applied to imports, innovative security regulations, altered hygienic necessities, or more challenging procedures for import licensing and customs clearance. Experts say it can be tricky to differentiate among legitimate measures taken by industrialized countries to protect public health and promote consumer safety and regulations that abuse free-trade principles and unjustly limit imports."
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