Answer:
Tariff and non-tariff barriers are two types of policies that countries use to regulate or restrict international trade. Tariff barriers are taxes or duties imposed on imported goods, which increase their price and make them less competitive in the domestic market. Non-tariff barriers are any other measures that limit the free flow of goods across borders, such as quotas, licenses, standards, subsidies, or sanctions1.
The impact of tariff and non-tariff barriers on international trade can be positive or negative, depending on the perspective and the objectives of the policymakers and the traders. Some possible impacts are:
Tariff and non-tariff barriers can protect domestic industries from foreign competition, especially if they are less efficient or less developed. This can help them grow, create jobs, and increase national income.
Tariff and non-tariff barriers can also generate revenue for the government, which can be used to finance public goods or services or to reduce other taxes.
Tariff and non-tariff barriers can also be used as a tool to achieve other goals, such as environmental protection, national security, human rights, or fair trade.
However, tariff and non-tariff barriers can also have negative impacts on international trade, such as reducing the volume and variety of goods available to consumers and producers, increasing the prices and lowering the quality of goods, creating inefficiencies and distortions in the allocation of resources, and creating trade disputes and conflicts with other countries.
Tariff and non-tariff barriers can also hurt the domestic economy by reducing its competitiveness, innovation, and productivity, and by creating rent-seeking and corruption opportunities.
Tariff and non-tariff barriers can also have spillover effects on other countries, especially if they are part of a regional or global value chain, or if they are subject to retaliation or countermeasures.
Therefore, the impact of tariff and non-tariff barriers on international trade depends on many factors, such as the type, level, and scope of the barriers, the characteristics of the goods and the markets involved, the objectives and preferences of the policymakers, and the traders, and the reactions and responses of other countries. Tariff and non-tariff barriers can have both advantages and disadvantages, and their net effect may vary across different scenarios and contexts.