Trade barriers are country-level hindrances that limit the free exchange of goods and services, such as tariffs, quotas, import deposits, etc. There are two kinds of Trade barriers: Tariff trade barriers and non-tariff trade barriers.

What is a tariff barrier?

Tariff barriers are restrictions to foreign trade that translate into increased tariff duties or other types of limitations for the purpose of preventing certain imports, either to equilibrate the country’s balance of trade, to protect national production, or to increase exchanges among a group of countries. Tariff barriers come in the form of taxes and levies on incoming foreign products.

What is a non-tariff barrier?

Non-tariff barriers are measures, different from the usual import tariffs, aimed at restricting or avoiding the entrance of imports into the domestic market. Among the major non-tariff barriers, one may highlight import prohibitions, discretional quotas on imports, minimum entrance prices, sanitary and phytosanitary standards, norms of origin, and technical standards, among others.

For more information about non-tariff barriers, you may visit our portal and check the Barriers section, under International Trade.

What does “dumping” mean?

“Dumping” is a trade practice that consists of selling a product in a foreign market at a lower price than in the manufacturing country’s market, or a comparable market in another country. It is an unfair trade practice because it subsidizes sales in the importing country’s market. The dumping margin is the difference between the sale price in the importing country and the sale price in the country of origin, or the export price to other countries.