Non-tariff methods of regulation of foreign trade - the hidden tools of economic policy

Modern trends and processes of the global macroeconomic system dictate the need for the presence in the arsenal of the government of any country wide variety of instruments of state influence on the import and export streaming mechanisms.Among these hidden tools, of course, is attributed and non-tariff methods of regulation of foreign trade, which are not only economic goals, but sometimes make it possible to solve serious geopolitical problem.The wide and flexible set of this focus, among other things, is a prerequisite for the implementation of an active, consistent and coherent customs policy, which contributes to an increase in the volume of import and export flows and expanding commodity nomenclature, as well as improve the efficiency of international trade transactions.

Non-tariff methods of regulation of foreign trade

Background and necessity of non-tariff regulation

Today, many processes observed in the world economic system, such as the non-uniformity and heterogeneity of the various countries, political and economic crises, a signif

icant expansion of foreign trade, and other markets, and require hardtargeted regulation.While the extreme openness and transparency of tariff and customs agents is not always possible to achieve the desired effect.Any willful unilateral decision in this area could cause a strong reaction of rejection and cause hard response from the other states.This may result in not only the political tensions between the powers, but also to identify some trade-economic confrontation is fraught with large losses, and general instability.In this regard, non-tariff methods of regulation of foreign trade plays a certain role of economic diplomacy and at the same time can achieve tangible success.

Non-tariff methods of regulation of international trade

Non-tariff restrictions

In such difficult conditions, international relations, and there were a set of effective tools of foreign trade policy, which are not included in the scope of tariff and customs regulation, but because of its hidden nature, allow to solve aa set of complex problems, sometimes even different polarity.Such instruments, which are inherently hidden non-tariff restrictions, combined in the category under the title "non-tariff methods of regulation of foreign trade."All these tools of influence on international economic processes can be divided into conventional categories: hidden, quantitative and financial methods.Non-tariff methods of regulation of foreign trade today - the most effective means of international economic policy.And for several reasons.

Tariff methods of regulation of foreign trade

main reasons for the effectiveness of non-tariff barriers

Non-tariff methods of regulation of international trade, as a rule, do not depend on the provisions of any agreement between the two countries and are not a formal commitment.Consequently, their order volumes and methods can be fully regulated by national legislation that gives the government wide scope for legal and economic maneuvers.In addition, these tools allow you to limit the full account not only the interests of power, but also the overall foreign trade situation in a particular historical moment in the global market.Depending on this it is possible to vary these techniques, which does not always lead to the tariff methods of regulation of foreign trade, which often set the various interstate agreements.Finally, the use of non-tariff barriers does not entail additional tax burden for domestic subjects of foreign economic activity that stimulates and revitalizes the national economy.

Quantitative restrictions

This method is the most common form of administrative direct state influence on the processes of foreign trade.It provides some economically justified restrictions on imports / exports of various categories or in terms of quantity or value terms.Moreover, the export quota is usually set according to the international stabilization agreements governing the share of each state in the general supply of certain goods to the world market (eg oil or non-ferrous metals).Also quantitative quotas may be established by the Government to prevent the export of goods that are in short supply on the national market.

Hidden tools of foreign trade policy

Among these are the kinds of technical barriers, strict sanitary standards, harsh quality requirements for food imported (for example, the content of food additives E322, E367, etc.), The rules of packaging and labeling of products (eg, the obligatory presence of the Russian-language instruction manual).There is also a number of hidden regulatory tools to limit unwanted imports include compliance with environmental requirements, fire protection and hygiene (for example, certain conditions of radiation safety requirements for the product and the materials from which it is made).In addition, this purpose is served by domestic taxes and various fees, significantly increasing the price of imported goods and making them uncompetitive.