NTO is an acronym that stands for "Non-Tariff Barrier." It refers to various types of trade barriers and restrictions imposed by a country on imports or exports, other than the imposition of tariffs. NTOs are designed to protect domestic industries, regulate international trade, and maintain economic stability. The objective behind implementing NTOs is to create a more level playing field for domestic industries by limiting or controlling foreign competition.
Non-tariff barriers encompass a wide range of measures, including quotas, licensing requirements, product standards or regulations, subsidies, sanitary and phytosanitary measures, customs procedures, technical barriers to trade, intellectual property rights, and other administrative or bureaucratic obstacles that affect trade flows. The intention is to hinder or discourage imports or exports, making it less attractive for foreign companies to enter the market.
NTOs can also be used by governments to address certain concerns such as environmental protection, public health, consumer safety, or safeguarding national security. However, they can often be seen as protectionist measures that distort international trade and limit market access for foreign producers.
The World Trade Organization (WTO) plays a crucial role in regulating and addressing issues related to non-tariff barriers to ensure fairness, transparency, and predictability in international trade.
