Nontariff Barrier

Summary of Nontariff Barrier

An economic, political, legal, or administrative impediment to trade, other than the specific exclusions conveyed by quotas or the cost impact of duties. The most common nontariff barriers are found in administrative regulations a country imposes on the manufacture, sale, or use of a specific product, irrespective of whether its origin is domestic or foreign. Very often these regulations are not aimed at impeding trade. Even among highly integrated free trade areas such as the European Economic Community such barriers exist; for example, France levies a high tax on grain- based spirits, thereby impeding sales of foreign whiskey in France.

(Main Author: William J. Miller)