Pakistan Institute of Development Economics

P & R Vol.1 Issue 2
Non-Tariff Measures in Pakistan
Publication Year : 2020
Author: Uzma Zia

Currently, technical barriers to trade are prevailing worldwide and Pakistan is no exception to it. Nontariff barriers to trade (NTBs) are trade barriers that restrict imports such as: anti-dumping measures and countervailing duties. NTBs impact the trade flows of Pakistan and other WTO members. With the exclusion of a few sensitive high tariff products, NTB are the tangible obstacle to international trade. Non-tariff measures (NTMs) are policy measures other than a customs tariff. Enormously, tariff and NTMs are levied to protect home country’s import competing industrial sector. Tariff are monetary (taxes) while non-tariff measures are non-monetary barriers (documentation requirements, technical or safety standards, and packaging requirements) used by importing countries. NTMs are a normal part of doing business for producers and can impose more restrictions for trade than actual tariffs. They can be applied in different ways and at different stages of the supply chain which include: regulations, rules of origin, and quotas. Tariffs and non-tariff barriers are typically set by regulatory agencies that are empowered by statutes passed in legislatures. Countries usually close their economy through domestic laws that endorse tariffs and NTBs.