ABSTRACT

As tariffs have been reduced by successive rounds of multilateral negotiations in the GATT, and selectively in discriminatory trade blocs, it has become apparent that other barriers to trade have become relatively more significant. These so-called non-tariff barriers are remarkable for their diversity, and in the eyes of some commentators they are now more important than remaining tariffs in their impact on trade flows. The wide variety of measures considered as non-tariff barriers has been most completely revealed in regional trade blocs, like the EEC and EFTA, where the elimination of tariffs has exposed these alternative instruments of protection. Some attempts have been made in these regional blocs to harmonise national policies to reduce the effects of non-tariff barriers. There is a danger, however, that this will intensify the trade-distorting effects on outsiders. Since non-tariff barriers exist in all countries, it would be more appropriate if attempts to modify or remove such trade-distorting policies took place in a multilateral framework.