The challenges posed by Non Tariff Measures are i Over regulation ii More availability of certain go...........

Economic and Social Issues Liberalization, Privatization and Globalisation

According to recently published “The Asia-Pacific Trade and Investment Report 2019”, non-tariff measures (NTMs) have increased in the past two decades. Non-tariff measures (NTMs) are policy measures — other than ordinary customs tariffs — that can potentially have an economic effect on international trade in goods, changing quantities traded, or prices or both. A detailed classification is therefore critical in order to clearly identify and distinguish among the various forms of NTMs. The International Classification of NTMs follows taxonomy of all measures considered relevant in today's international trade. This classification comprises technical measures, such as sanitary or environmental protection measures, as well as others traditionally used as instruments of commercial policy, e.g. quotas, price control, exports restrictions, or contingent trade protective measures, and also other behind-the-border measures, such as competition, trade-related investment measures, government procurement or distribution restrictions.

The challenges posed by Non Tariff Measures are

i Over-regulation

ii More availability of certain goods and declining value of them

iii Lack of transparency

iv Biased against developing & least developed countries

Select the correct answer using the code given below

i. ii and iii only

ii, iii and iv only

i. iii and iv only

All of the above

None of these

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Explanation:

Challenges posed by Non-Tariff Measures

•Over-regulation: Often, quality restrictions and safety standards often exceed multilaterally acceptable norms and are of particular concern to poor countries whose producers are often ill-equipped to comply with them.

•Biased against developing & least developed countries (LDCs): In practice, SPS measures and TBTs erode the competitive advantage that developing countries have in terms of labour costs and preferential access, as the compliance cost is high.

•Reduces availability: Certain NTMs have negative impact on access to goods and technologies relevant to various SDGs. E.g. IPRs pose barriers to the access to medicines and medical technologies (e.g. dispute on compulsory licensing & evergreening of patents), technologies and goods relevant to targets on renewable energy and water efficiency (e.g. solar panel dispute between India & US).

•Lack of transparency: There is a lack of transparency in implementation due to paucity of data on trade policy measures which, unlike tariffs, are not quantified and are often hidden in legal and regulatory documents.