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Tariff and Non-tariff barriers, enforcement
of WTO rules
DG Trade - F3, C. Hallberg
Tariff vs. non-tariff barrier• Tariff - customs duty or tax levied only on imported
goods for domestic consumption "at the boarder".
• Non-tariff –measure "behind-the-boarder" that restrict imports but are not in the usual form of a tariff (domestic regulations: standards, testing, labelling or transparency. etc. but also issues such as distribution, quota)
• Both induce extra costs that raise the price for imported goods vs. the domestic like product.
Tariff barriers – Non AgriculturalSimple average tariff rates
Source: WTO
Tariff barriers – FootwearSimple average tariff rates
Source: Market Access Database, DG TRADE
Tariff barriers – how do EU tackle them?
• WTO Doha round (since 2001)• Liberalisation on the Multilateral scene
• FTA (Free Trade Agreements)• Korea, Canada, Japan, US, Mercosur, Vietnam,
Malaysia etc.
Non-tariff Barriers – what is behind some of them?
• A challenge for regulators
… to ensure products are safe, and provide consumers with adequate information / confidence…
… without excessive cost and administrative burden for producers who need to market their products.
Non-tariff Barriers – EU means for addressing them
• Horizontally within FTA
• In WTO – e.g. TBT committee
• Bilaterally on a case-by-case
Non-tariff Barriers – EU means for addressing them
• TBT (Technical Barriers to Trade) is one NTB
• TBT agreement – notification, equal treatment (Art 2.1) and proportionality (Art 2.2)
• TBT data base (DG ENTER) subscription for EU industry (lodging complaints, receive information etc.)
• Example. Footwear Russia
Enforcing WTO rules – two mechanisms
• Tackling unfair trade – Anti-Dumping, Anti-Subsidy, Safeguard
• DSU - Dispute Settlement Understanding
Enforcing WTO rules – Anti Dumping
• What is dumping?• Dumped price (vs. domestic in 3rd country or
below cost of production)• EU industry injured• Causality between the dumping and injury
• EU vs. Company(ies) (not countries) in third country
• Initiated by complaint of EU industry (contact DG TRADE Unit H1). Council decide on extra AD duties after investigation.
Enforcing WTO rules – DSU
• DSU - Dispute Settlement Understanding
• In FTAs , WTO
• Provide rapid(!?) settlement of disputes
• TBR (Trade Barrier Regulation) Provides help to EU companies (contact DG TRADE F2)
• Eg. Recycling fees on cars in Russia
Thank you
DG Trade - F3, C. Hallberg