Tariff and Non-tariff barriers, enforcement

of WTO rules

DG Trade - F3, C. Hallberg

Tariff vs. non-tariff barrier• Tariff - customs duty or tax levied only on imported

goods for domestic consumption "at the boarder".

• Non-tariff –measure "behind-the-boarder" that restrict imports but are not in the usual form of a tariff (domestic regulations: standards, testing, labelling or transparency. etc. but also issues such as distribution, quota)

• Both induce extra costs that raise the price for imported goods vs. the domestic like product.

Tariff barriers – Non AgriculturalSimple average tariff rates

Source: WTO

Tariff barriers – FootwearSimple average tariff rates

Source: Market Access Database, DG TRADE

Tariff barriers – how do EU tackle them?

• WTO Doha round (since 2001)• Liberalisation on the Multilateral scene

• FTA (Free Trade Agreements)• Korea, Canada, Japan, US, Mercosur, Vietnam,

Malaysia etc.

Non-tariff Barriers – what is behind some of them?

• A challenge for regulators

… to ensure products are safe, and provide consumers with adequate information / confidence…

… without excessive cost and administrative burden for producers who need to market their products.

Non-tariff Barriers – EU means for addressing them

• Horizontally within FTA

• In WTO – e.g. TBT committee

• Bilaterally on a case-by-case

Non-tariff Barriers – EU means for addressing them

• TBT (Technical Barriers to Trade) is one NTB

• TBT agreement – notification, equal treatment (Art 2.1) and proportionality (Art 2.2)

• TBT data base (DG ENTER) subscription for EU industry (lodging complaints, receive information etc.)

• Example. Footwear Russia

Enforcing WTO rules – two mechanisms

• Tackling unfair trade – Anti-Dumping, Anti-Subsidy, Safeguard

• DSU - Dispute Settlement Understanding

Enforcing WTO rules – Anti Dumping

• What is dumping?• Dumped price (vs. domestic in 3rd country or

below cost of production)• EU industry injured• Causality between the dumping and injury

• EU vs. Company(ies) (not countries) in third country

• Initiated by complaint of EU industry (contact DG TRADE Unit H1). Council decide on extra AD duties after investigation.

Enforcing WTO rules – DSU

• DSU - Dispute Settlement Understanding

• In FTAs , WTO

• Provide rapid(!?) settlement of disputes

• TBR (Trade Barrier Regulation) Provides help to EU companies (contact DG TRADE F2)

• Eg. Recycling fees on cars in Russia

Thank you

DG Trade - F3, C. Hallberg