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Tariff and Non-tariff barriers, enforcement of WTO rules

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".

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Tariff and Non-tariff barriers, enforcement of WTO rules

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  1. Tariff and Non-tariff barriers, enforcement of WTO rules DG Trade - F3, C. Hallberg

  2. 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.

  3. Tariff barriers – Non AgriculturalSimple average tariff rates Source: WTO

  4. Tariff barriers – FootwearSimple average tariff rates Source: Market Access Database, DG TRADE

  5. 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.

  6. 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.

  7. Non-tariff Barriers – EU means for addressing them • Horizontally within FTA • In WTO – e.g. TBT committee • Bilaterally on a case-by-case

  8. 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

  9. Enforcing WTO rules – two mechanisms • Tackling unfair trade – Anti-Dumping, Anti-Subsidy, Safeguard • DSU - Dispute Settlement Understanding

  10. 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.

  11. 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

  12. Thank you DG Trade - F3, C. Hallberg

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