There are many formal restriction of international trade, which determines access to the market. The restriction of international trade are imposed by the government. In addition to the formal restrictions, there are informal restrictions also. However, the informal restrictions of trade are not defined.
The informal restrictions lie outside the purview of WTO, although some of the barriers may be encouraged by the government unofficially.
Restriction of international trade non-tariffs
The non tariff barriers may include norms, which govern technical standards and health standards, influencing costs. The non tariff restrictions are difficult to ascertain, hence they are more frequently treated quantitatively and are of wide range.
Some of the non tariff barriers of international trade may include the following:
Specific restriction of international trade:
Constraints on export
Minimum price regulations.
Restriction of international trade pertaining to imports may be of the following types:
Special import duties
Intervention of the government in trade:
Subsidies in export
Trading of stocks
Procedures followed in administrative and customs entry:
Duties imposed for anti dumping
Restriction of international trade with respect to the environment:
Maintaining the ecological balance has become very important. There are many factors, which hamper the ecological equilibrium. Many policies have been implemented to check the same.
The restriction of international trade pertaining to environmental factors include the following:
Pollution as a result of processing plants
Usage of polluting elements in production procedures
How much energy is utilized by processing plants
Judicious consumption of energy
In order to facilitate trade, many restriction of international trade have been minimized. At the same time the government, strives to strike a balance between encouraging trade between nations and carrying out trade judiciously.