Non-tariff barriers stymie India's efforts to boost global trade

80% OF COUNTRY'S TRADE IMPACTED | NTBs thrive amid efforts to ease trade through FTA route

- MUKESH JAGOTA

WHILE THE GOVERNMENT is considering more free trade agreements that address tariff walls, the post-pandemic proliferation of non-tariff barriers (NTBs) are threatening to undo the trade liberalisation plans.

NTBs have come in the form of quotas, embargoes or technical regulations, standards and conformity assessment procedures that are used to ensure the safety, quality and performance of goods.

The key Indian exports that routinely face high NTBs are chilies, tea, basmati rice, milk, poultry, bovine meat, fish, chemicals products to the EU, sesame seed, shrimps, medicines, apparel to Japan; food, meat, fish dairy and industrial products to China.

In the US fruits and shrimp exports face barriers while in South Korea bovine meat. Ceramic tiles to Egypt, chilli to Mexico, medicines to Argentina, microbiological regents to Saudi Arabia, electrical, medical devices and household appliances to Brazil.

According to an assessment, 80% of India's trade is subject to some or the other non-tariff barrier.

Non-tariff barriers are more effective than tariffs in regulating trade. While tariffs can regulate prices and businesses can adjust to it, the list of compliances, complex rules and time taken to meet the technical and safety requirements can dissuade many smaller and medium businesses.