Problem

Undermining of trade preferences by non-tariff measures

Other Names:
Non-uniformity of tariff and non-tariff trade preferences
Nature:

Under the generalized system of preferences (GSP), preference-giving countries extend tariff preferences to certain products exported from designated beneficiary countries while retaining most-favoured-nation duties on imports from non-preferred supply sources (developed countries). Tariff preferences are intended to stimulate exports from beneficiaries and encourage investment in export-related activities. When exports of GSP-covered products confront non-tariff measures (NTMs) in markets of preference-giving countries, beneficiaries find it difficult to expand exports in response to tariff preferences, since NTMs counter the price incentives inherent in the preferential tariff margins.
Incidence:

Almost one quarter ($7.7 billion) of GSP-covered products ($33.3 billion) in 1986 trade terms were affected by NTMs in 10 OECD preference-giving countries.
Broader Problems:
Unbridled economic competition
Preferential trade arrangements
International differences in trading practices
Aggravates:
Trade barriers against developing countries
Weakness in trade among developing countries
References:
Clarke, Don P: Incidence of Non-Tariff Measures on Imports of GSP-Covered Products
Subject(s):
Commerce → Customs
Commerce → Trade
Research, Standards → Quality unification
Related UN Sustainable Development Goals:
GOAL 17: Partnerships to achieve the Goal
Problem Type:
E: Emanations of other problems
Date of last update
04.10.2020 – 22:48 CEST