Governmental Barriers to Trade

One of the significant challenges facing exporters in global markets is the presence of unfair technical and tariff barriers imposed by the governmental authorities of importing countries. These barriers are often designed to protect local industries, but corruption can also affect their implementation.

Understanding Technical Trade Barriers

Technical trade barriers are diverse and abundant. A key strength of the WTO rules is their ability to tackle these barriers by defining what constitutes a “technical barrier to trade” and prohibiting such barriers in the national laws of member countries. This structure equips exporting companies with the means to ensure competitive access to destination markets.

WTO Rules and National Trade Laws

It's essential to recognize that references to WTO rules also refer to the national trade laws of WTO member countries, as these rules become an integral part of a member country’s laws upon its accession to the WTO.

Challenges Despite WTO Rules

Despite the WTO rules, member countries often find ways to circumvent them, placing the burden on exporting and importing companies to contest these violations. However, armed with awareness of what constitutes an illegal barrier and a deep understanding of the legal tools available to address unjust measures, exporters can be well-prepared to face these challenges.

Examples of Illegal Governmental Barriers

Here, we present some practical examples of what may constitute illegal governmental barriers under WTO agreements. Understanding these examples is crucial, as it equips exporters with the knowledge to identify and address such barriers, thereby ensuring fair and unhindered access to global markets.

1. Complicated Import Licensing: Unnecessarily complex requirements, including non-automatic import licensing and excessively restrictive technical, sanitary, and environmental standards.

2. Discriminatory Taxes and Duties: Imposing taxes or duties exclusively on imported products while exempting similar local products or levying higher taxes or duties on imports than local products.

3. Tariff Disparities: Applying higher tariff rates on imported products than those applied to imports from different WTO member countries or imposing tariffs higher than the bound rates specified in the importing country’s schedule of tariff concessions.

4. Quota-Based Restrictions: Subjecting imported products to illegal and unjustified quota-based entries.

5. Non-Compliant Customs Valuation: Customs valuation procedures are not compliant with WTO standards.

6. Excessive Duties: Imposing non-compliant or excessive dumping, countervailing, and safeguard duties on imported products.

7. Customs Clearance Delays: Implementing unnecessarily complicated customs clearance procedures.

By understanding these barriers and adeptly navigating the legal frameworks provided by the WTO and national laws, exporters can effectively protect their interests and ensure fair access to global markets. This knowledge empowers exporting companies, placing them in control of their international trade endeavors.