A Proposal to Lower Non-Tariff Barriers between China-Japan-Korea

Abstract

Non-tariff measures are defined as “policy measures other than ordinary customs tariffs that can potentially have an economic effect on international trade in goods, changing quantities trade, or prices or both (UNCTAD 2012, p.1).” Many non-tariff measures are inevitable, with legitimate purposes such as protecting the health and safety of consumers and pursuing public welfare goals. Some non-tariff measures, however, create unnecessary obstacles towards trade; as a subset of non-tariff measures, the unnecessary barriers to trade are distinguished as non-tariff barriers and should be considered for eventual elimination. Under the GATT and WTO regimes, the level of tariff rates has gradually declined while non-tariff measures have become more prevalent worldwide. (See Figure 1. and Figure 2.) Among many types of non-tariff measures, the number of TBT and SPS measures implemented increased substantially during the global financial crisis, implying that countries around the world are employing more subtle measures to protect their domestic economy. As noted, many non-tariff measures have legitimate goals, but the difference of such measures between countries may incur additional costs to firms involved in international trade. Thus harmonizing TBT/SPS related regulations between countries is important in eliminating the unnecessary barriers to trade.