Benefits Of Non Trade Barriers

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Despite of the reduction in tariffs in recent years, non-trade barrier are now another challenge in international trade (Carbaugh, 2013). This is because even though high tariffs are reduced, it is the tariffs with political influence that are protected through different channels (Carbaugh, 2013). For instance, the government tends to set quotas that are a level below what would be required under free trade laws which will ultimately hinder the volume of trade (Carbaugh, 2013). This proposes a bigger challenge for developing countries as they generally lack adequate information, capabilities and facilities to meet the requirements (Averbeck & Skorobogogatova, 2010). The major non-tariff barriers that exist today have tremendously affected trade patterns in ways of absolute import quotas, tariff rate quotas, voluntary export restraints, subsidies, and domestic content requirements (Carbaugh, 2013). To expand on a few, absolute import quotas restricts the number of goods that can enter a country within a specific amount of time, usually a year (Carbaugh, 2013). Both absolute and tariff quotas place restrictions on imported goods and are enforced at every port of entry in the United States by the U.S. customs and Border protection (Carbaugh, 2013). One example is that an absolute quota may require that no more than 1 million kilograms of wheat or 10 million kilograms of sugar can be imported during a specific time period (Carbaugh, 2013). For imports that exceed the
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