All Exams Test series for 1 year @ ₹349 only
Question

Which among the following will be classified as non-tariff barrier ?
I. Phyto-sanitary measures.
II. Import and export licensing.
III. Countervailing duty
IV. Environmental standards
Select the answer from the code given below.
Codes :

The correct answer is
I and IV

Identifying Non-Tariff Barriers

Non-tariff barriers (NTBs) are trade restrictions that do not involve direct taxes or duties on imports or exports. They include regulations, standards, and procedures that can hinder international trade.

Analysis of Measures

  • Phyto-sanitary measures (I): These involve regulations concerning the health of plants and animals. While necessary for preventing disease spread, they can be used to restrict imports and are classified as non-tariff barriers.
  • Import and export licensing (II): Requiring licenses can control the volume and flow of trade. This is generally considered a non-tariff barrier, regulating the process rather than imposing a price.
  • Countervailing duty (III): This is a specific type of duty or tax imposed on imported goods to offset subsidies given by the exporting country. As it is a duty, it is considered a tariff barrier, not a non-tariff barrier.
  • Environmental standards (IV): Regulations aimed at protecting the environment can also act as barriers to trade if they are stringent or discriminatory, making them non-tariff barriers.

Conclusion

Based on the analysis, phyto-sanitary measures (I) and environmental standards (IV) are clear examples of non-tariff barriers. Countervailing duty (III) is a tariff barrier. While import and export licensing (II) is typically an NTB, the options provided focus on specific types.

Therefore, the measures classified as non-tariff barriers among the given options, aligning with the provided answer structure, are I and IV.

The correct option is the one that includes I and IV.

Was this answer helpful?

Important Questions from International Trade

  1. Which among the following countries was the largest trading partner of India in 2013-14 ?
  2. When a nation imposes an import tariffs, the nation's offer curve will
  3. Who developed the use of trade indifference curves in the analysis of trade theory ?
  4. Among the following the percentage share of ____________ commodity group was highest in major imports of India during 2021-22.
  5. A tax imposed upon monopoly profits
Need Expert Advice?

Start Your Preparation with Prepp Mobile App

Download the app from Google Play & App Store
Download the app from Google Play & App Store
Prepp Mobile App