Non-tariff measures

What are NTMs?

According to UNCTAD, non-tariff measures (NTMs) are policy measures other than ordinary customs tariffs that can potentially have an economic effect on international trade in goods by changing the quantities traded, prices or both. Almost all products are subject to NTMs at and behind the border. They have different forms such as the requirement for import registration, product quality testing requirement, labelling and quarantine requirements, and conditions of export permits.

Why are NTMs important?

Non-tariff measures affect lives every day. For instance, requirements on how food is processed to ensure what we eat is safe. 

NTMs can be a tool in countries' efforts to achieve Sustainable Development Goals (SDGs) in many areas such as health and environment. These policy measures have a growing impact on international trade which is important for economic growth and jobs.

How do NTMs affect trade?

According to UNCTAD, 90 % of global trade is subject to non-tariff measures (NTMs). 

• NTMs can increase trade costs three times as much as tariffs. 
• NTMs often lack transparency. This increases uncertainty and unpredictability in global trade. 

At the same time, NTMs can be beneficial for international trade, as they 

• guarantee quality through certification, 
• provide information about products through labelling, 
• reflect a commitment to socially important issues through labelling and environmental standards, etc. 

Learn more in the article "Non-tariff measures: their purpose and effect on trade" by Rizwan Mahmoood, CCRM Issue 23 (2023)