Non-tariff barriers: Govt readies steps to ease exporters’ woes

  • November 15, 2024
  • 0

The government is working towards a strategy to tackle non-tariff barriers faced by exporters by setting up a committee and launching a portal.

Typically, non-tariff barriers take several years to resolve. The development comes at a time when India is negotiating free-trade agreements (FTAs) with several developed economies, where non-tariff measures related to environment and sustainability have become a cause for concern for Indian exporters.

In international trade, barriers faced by exporters and importers may not be limited to the imposition of tariffs or duties. Non-tariff barriers, such as documentation procedures, import restrictions, prohibition, seasonal duties, tariff rate quotas, and public procurement practices, are seen discriminatory against imports.

A committee has been set up to look at the barriers. Sometimes, resolving non-tariff barriers requires improvements or changes from our (India’s) side, and at times, engagement with trade partners. The government is trying to find out the best way forward to resolve the issues.

The committee would do a detailed analysis and try to understand whether a regulation imposed by the trade partner is compliant with the rules of the World Trade Organization (WTO) or whether India has objected to it in the past. (It will also determine) whether the matter is WTO-compliant, other countries are complying with the norms, and if we (India) can tweak our system to deal with the challenge.

The government has identified 100-200 non-tariff barriers and is collating trade data. The plan is to launch an online portal over the next few months.

The portal will allow exporters to report non-tariff barriers and identify if they are WTO-compliant and if it’s company-specific issues or being faced by multiple exporters. The committee will then deliberate on the steps to intervene.

The portal will also help in tracking the history and the chronology of the barriers and the number of times they have been discussed with trade partners.