UNCTAD Flags Rising Cost of Non-Tariff Barriers

The United Nations Conference on Trade and Development has released a report titled Invisible Barriers: The Costs of Non-Tariff Measures. The report states that non-tariff measures now impose greater costs on global exports than tariffs for 88% of countries.

Non-Tariff Measures

Non-tariff measures are trade-related rules other than customs duties. They include mandatory standards, product requirements, licensing requirements, and health regulations. These measures apply to goods trade and often require compliance with technical, sanitary, or administrative conditions.

Impact on Developing and Least-Developed Countries

The report states that developing economies and least-developed countries face higher compliance costs under non-tariff measures. Least-developed countries lose about 10% of their exports to G20 markets because they cannot meet non-tariff requirements. The report also states that weak participation by least-developed countries in World Trade Organization disputes and negotiations affects their ability to address technical barriers.

Trade Policy Trends and Cost Estimates

Global tariffs increased in 2025 by 10% for developed economies, 16% for developing nations, and 18% for least-developed countries. The report states that non-tariff measures remained the dominant expense for most exporters despite this tariff rise. It also links the rise in interventionist trade policies to the COVID-19 pandemic, Russia’s invasion of Ukraine in 2022, and tariff increases in the United States in 2025.

Important Facts for Exams

• The United Nations Conference on Trade and Development is a United Nations body that deals with trade, investment, and development issues.
• Non-tariff measures include sanitary and phytosanitary rules, technical standards, and import licensing systems.
• The World Trade Organization handles trade disputes and trade rule negotiations among member states.
• The African Continental Free Trade Area is a continental trade agreement among African Union member states.

Transparency and Regulatory Cooperation

The report estimates that improving transparency in non-tariff measures alone could reduce related trade costs by about 19%. It also states that stronger regulatory cooperation under initiatives such as the African Continental Free Trade Area could reduce compliance costs for agricultural and manufacturing trade by 30% to 40%.