Impact of Tariffs and Nontariff Barriers on the International Trade

Abstract

In the modern world economy, tariff and non-tariff barrier regulation actsas an effective regulator, promoting greater openness of the market, oras the most widespread foreign trade instrument of protectionism. Over the past decades there has been a steady decline in the rates of import customs duties. On the other hand, non-tariff measures to regulate foreign trade are being applied more and more effectively. But at the same time customs and tariff policy continues to be a key factor determining the national trade regime and the conditions for access of foreign products to the domestic market.The main purpose of this research is to assess the influence of tariffs and non-tariff barriers on international trade, asthese factors play an essential role in the international trade.The theoretical and methodological basis of the study was the work of scientists in the field of finance, state regulation of foreign economic activity and international relations. In the methodology part gravity model regression is assessed for tariff and non-tariff measures (NTMs)regulatingforeign trade flows. As result, non-tariff barriers (NTMs) such as Sanitary and Phytosanitary Standards (SPS) and Technical Barriers to trade (TBT) have had the largest negative impact.