non tariff barrier (NTB)

Definition

Measures other than high import duties (tariff) employed to restrict imports. Two such measures are (1) direct price influencers, such as export subsidies or drawbacks, exchange rate manipulations, methods of imports valuation, customs surcharges, lengthy customs procedures, establishment of minimum import prices, unreasonable standards and inspection procedures, and (2) indirect price influencers, such as import licensing and import. NTBs, with certain exceptions, are breach of GATT (now WTO) rules but, nevertheless, their overall use has been on the increase since the Tokyo round of multilateral trade negotiations (September 1973 to April 1979) where they were first discussed. No specific definition of NTBs exists, and they are also called non tariff measures.