A
trade barrier is an obstacle to trade. It is a concept in which flow of certain
international goods or services restricted by government through various kits
like:- tariff, quotas, NTB’s.
Tariff
Barrier
One
kind of trade barrier done by import duties or taxes imposed on goods entering
the customs territory of a nation. Tariff barrier restricts export.
Example:
Two companies sell athletic shoes in the US. Company 1 is located in Brazil.
Company 2 is in Hershey, Pennsylvania. A tariff must be paid on all shoes made outside
the US and sold in the US. The tariff is 10% of all sales. As per rule, the
Brazilian company has to pay 10% tariff for entering into U.S.
Non-Tariff
Barrier
Non-tariff
barriers to trade (NTBs) or sometimes called "Non-Tariff Measures
(NTMs)" are trade barriers that restrict imports, but are unlike the usual
form of a tariff. Quotas and Embargo are some of the forms of NTB
Example:
Until 1920, Australia imported apple from New Zeland for its greater quality,
after 1921 Australia stopped importing apple from New Zeland because of fearing
fire blight a crop pest.
