1. Tariff and Non – Tariff Barriers
Overview

2. Trade Barriers
Used to encourage and protect existing domestic industry
Trade barriers are Tariffs that
Increase Trade
Weaken Trade
Restrict Trade
Quotas
Boycotts and Embargoes

3. Impact of Tariff (Tax) Barriers
Tariff Barriers tend to Increase:
Inflationary pressures
Special interests’ privileges
Government control and political considerations in economic matters
The number of tariffs they beget via reciprocity
Tariff Barriers tend to Weaken:
Balance-of-payments positions
Supply-and-demand patterns
International relations (they can start trade wars)

4. Non Tariff - Trade Barriers
Non Tariff barriers - are another way for an country to control the amount of trade that it conducts with another country, either for selfish or altruistic purposes. Any barrier to trade creates an economic loss, which means it does not allow the markets to function properly.

5. Six Types of Non-Tariff Barriers
1) Specific Limitations on Trade
Quotas
Import Licensing requirements
Proportion restrictions of foreign to domestic goods (local content requirements)
Minimum import price limits
Embargoes
2) Customs and Administrative Entry Procedures:
Valuation systems
Antidumping practices
Tariff classifications
Documentation requirements
Fees
quota is a type of protectionist trade restriction that sets a physical limit on the quantity of a good that can be imported into a country in a given period of time. For example, a country might limit sugar imports to 50 tons per year. Quotas, like other trade restrictions, are used to benefit the producers of a good in a domestic economy at the expense of all consumers of the good in that economy.
Import Licensing Procedures says import licensing should be simple, transparent and predictable. For example, the agreement requires governments to publish sufficient information for traders to know how and why the licences are granted.

6. Six Types of Non-Tariff Barriers (cont'd.)
(3) Standards:
Standard disparities
Intergovernmental acceptances of testing methods and standards
Packaging, labeling, and marking
(4) Government Participation in Trade:
Government procurement policies
Export subsidies
Countervailing duties
Domestic assistance programs

7. Six Types of Non-Tariff Barriers (cont'd.)
5) Charges on imports:
Prior import deposit subsidies
Administrative fees
Special supplementary duties
Import credit discriminations
Variable levies
Border taxes
6) Others:
Voluntary export restraints
Orderly marketing agreements

8. Apples Banned - Non Tariff Barrier
New Zealand's apples account for a third of its agricultural exports but have been banned from Australia since due to fears about the spread of fire blight, a crop pest.

9. Mangoes Philippines – Restrictions
It is a common practice in many countries to use non- tariff barriers to control the entry of imports.  For instance, Philippine mangoes and bananas have to meet strict phytosanitary requirements from the US and Australia.  

10. McDonald France – Big Beef
McDonalds France in 1998, ran a print ad campaign featuring overweight cowboys complaining about the fact that McDonald's France refuses to buy American beef but uses only French, to "guarantee maximum hygienic conditions" — an unsubtle effort to identify the Global Arches with European efforts to block the import of hormone-laced American beef. (Karon, 2002)

11. General Agreement on Tariffs and Trade
Paved the way for the first effective worldwide tariff agreement.
Basic Elements of the GATT:
Trade shall be conducted on a non-discriminatory basis.
Protection shall be afforded domestic industries through customs tariffs, not through such commercial measures as import quotas.
Consultation shall be the primary method used to solve global trade problems.
Eliminating barriers to international trade (Uruguay Round):
The General Agreement on Trade in Services (GATS)
Trade-Related Investment Measures (TRIMs)
Trade-Related Aspects of Intellectual Property Rights (TRIPs)