Non-tariff barriers

Question 1

What are non-tariff barriers to import?

Answer 1

Any tarde policy measures used by the government to reduce imports, other than tariffs

Question 2

What are the 4 types of NTBs?

Answer 2

i) import prohibition
ii) quotas
iii) technical barriers to trade
iv) sanitary and phytosanitary barriers

Question 3

What are the 3 types of trade remedies?

Answer 3

i) Antidumping duties
ii) Countervailing duties
iii) Safeguard

Question 4

What is quota rent?

Answer 4

Benefit/rent arising from a fixed amount of supply

Question 5

What is a rent-seeking society?

Answer 5

A society or firm not seeking productive activities, but seeking unproductive rent
=> prevalence of bribery to enjoy rent

Question 6

What is Single Undertaking?

Answer 6

All members should abide by all agreements of the WTO
Exceptions of plurilateral agreements

Question 7

What is GATT Art. XX?

Answer 7

General exceptions for protective measures.

Protective measures are allowed if:
- protect public moral
- protect human, animal, and plant life and health
- prison labor
- conservation of exhaustible resources

Question 8

What is prohibited or not under TRIMs agreement?

Answer 8

Prohibited:
- Local content requirement
- Trade balancing requirement

Not prohibited:
- Technology transfer requirement
- Export performance requirement

Question 9

What is the Agreement on Rules of Origin?

Answer 9

Rules deciding the country of origin when the components are made in more than one country
=> The last substantial transformation criterion

Question 10

What are Voluntary Export Restraints?

Answer 10

Importing country persuading the exporting country to set quantitative control on the export quantity voluntary
=> in the grey area in the global trading system

Question 11

What are the 5 interesting point in the Agreement on Agriculture?

Answer 11

i) Cairns VS. NTC
ii) Exceptionless tariff
iii) Tariff reduction
iv) Special safeguard
v) Domestic support

Question 12

What is Cairns VS. NTC under the Agreement on Agriculture?

Answer 12

Cairns: agriculture exporting
=> support agricultural trade liberalization
NTC: agriculture importing
=> support agricultural trade protectionism

NTC emphasize on the multi-functionality of agriculture

Question 13

What is Exceptionless tarrification under the Agreement on Agriculture?

Answer 13

In principle, NTBs of all agricultural products were changed to tariffs under the WTO

Exception of rice with Minimal Market Access granted to rice import

Question 14

What are the special safeguards under the Agreement on Agriculture?

Answer 14

Safeguard measures are involked automatically:
- Price-based SSG: price below a threshold
- Quantity-based SSG: quantity above a threshold

Question 15

What is Tariff reduction under the Agreement on Agriculture?

Answer 15

All NTBs were converted to tariff equivalent
=> dirty tariffication

Question 16

What is Domestic support measures under the Agreement on Agriculture?

Answer 16

Agreement Measure of Support: agriculture subsidy suject to reduction
i) Amber box: less reduction for developing countries, preferential treatment
ii) Blue box: exempt from subsidy reduction when limit production to avoid excess
iii) Green box; exempt from subsidy reduction when environmental protection or R&D