Dynamics and Structure of Non-Tariff Measures Applied in International Trade

Abstract

Trade volume growth in 2017, the strongest since 2011, was driven mainly by cyclical factors, particularly increased investment and consumption expenditure. The WTO is forecasting that global trade will expand in the coming years. The promising situation in international trade largely depends on the sustainability of global economic growth and the decisions of the largest countries’ governments regarding monetary, fiscal and especially trade policies. High uncertainty is associated with the implementation of negative scenarios in the event that some countries will apply protectionist measures and restrictive trade policy. Rising protectionism is a trend that has been strengthening in international trade for more than ten years. A new wave of protectionism was linked to the global financial and economic crisis. The recent steps taken by the United States administration to decrease trade deficit with the key partners, China in particular, are the most vivid example in this respect. Protectionism is reflected not only in the form of the introduction of tariff restrictions. Since the beginning of the 2000s, the role of non-tariff measures has grown significantly in the context of reducing tariff barriers in accordance with the WTO obligations and the rapid development of regional trade agreements. This article analyzes the dynamics and structure of non-tariff measures used in modern international trade and shows their relationship with the reduction of tariff restrictions and the development of preferential trade agreements. A similar analysis is done on the anti-dumping measures as one of the most common instruments of non-tariff regulation of international trade.