Why do some countries favour non-tariff barriers?

Some countries favour non-tariff barriers to protect domestic industries, regulate imports, and maintain economic stability.

Non-tariff barriers (NTBs) are trade restrictions that countries impose not through taxes, but through regulations, quotas, subsidies, or other means. They are often used as a tool to protect domestic industries from foreign competition. By making it more difficult or expensive for foreign goods to enter the market, NTBs can help domestic industries to grow and develop. This can be particularly important for developing countries, where domestic industries may not yet be competitive on the global market.

Moreover, NTBs can be used to regulate the quality and safety of imported goods. For example, a country might impose strict standards on imported food products to ensure they meet local health and safety regulations. This can help to protect consumers and maintain public confidence in the market.

Another reason why some countries favour NTBs is to maintain economic stability. By controlling the flow of goods into the country, governments can help to prevent sudden shocks to the economy. For example, if a country is heavily dependent on a particular import, a sudden increase in the price of that import could cause economic instability. By using NTBs to control the quantity of that import, the government can help to mitigate this risk.

Furthermore, NTBs can be used as a tool for economic diplomacy. By imposing or lifting barriers, countries can exert pressure on their trading partners to achieve political or economic goals. For instance, a country might use NTBs to encourage a trading partner to improve their labour or environmental standards.

Finally, it's worth noting that while NTBs can have benefits, they can also have downsides. They can lead to inefficiencies in the market, distort trade, and lead to trade disputes. Therefore, while some countries may favour NTBs, they are not without controversy.