International Journal of Foreign Trade and International Business
2019, Vol. 1, Issue 1, Part A
Introduction to trade barriers
Tariffs are the most important barriers of trade, and even one of the main purposes of WTO is to reduce tariffs. Before thinking about the legal structure which provides rules of tariffs, we must know about the meaning of tariffs, functions of tariffs and its elements. Tariff is a tax forced on foreign goods before entering into the country and non-tariff barriers are the measures pressed by the government in the favor of domestic products from foreign products. Non-tariff barriers are wider in range. These are made to reduce imports and providing benefits to domestic producers. To balance the economy of the country imposition of these barriers is necessary. Here we will discuss about types of barriers, objectives of trade barriers, and the reasons for government interventions.