1、Non-tariff Barrier(NTBs)Besides the use of tariffs to distort the free-trade allocation of resources,government policymakers have become very adept at using other,less visible,forms of trade barriers.These are usually called Non-tariff Barrier to trade,and they have become more prominent in recent y
2、ears.Economists have noted that as tariffs have been reduced through multilateral tariff negotiations during the past 40 years,the impact of this reduction may have been importantly offset by the proliferation of NTBs.Our purpose now is to describe some of these NTBs.Import QuotaThe import quota dif
3、fers from an import tariff in that the interference with prices that can be charged on the domestic market for an imported good is indirect,not direct.It is indirect because the quota itself operates directly on the quantity of the import instead of on the price.Import QuotaAbsolute Quota:the import
4、 quota specifies that only a certain physical amount of the good will be allowed into the country during the time period,usually one year.Relative Quota:If the quantity of the imported goods exceeds the specific quota,the higher duty will be imposed on the rest.Voluntary export restraintAn alternati
5、ve to the import quota is the voluntary export restraint.It originates primarily from political consideration.An importing country that has been preaching the virtues of free trade may not want to impose an outright import quota because that implies a legislated move away from free trade.Instead,the
6、 country may choose to negotiate an administrative agreement with a foreign supplier whereby that supplier agree“voluntarily”to refrain from sending some exports to the imposition of an import quota is the VER is not adopted by the exporter.Government Procurement ProvisionsAn objective of discussion
7、 in recent years,as well as an object of an international code of behavior in the 1979 Tokyo Round of trade negotiations,is legislation known as government procurement provisions.In general,these provisions restrict the purchasing of foreign products by home government agencies.For example:The“Buy A
8、merica”Act stipulated that federal government agencies must purchase products from home U.S.firms unless the firms product price was more than 6 percent above the foreign suppliers price.Domestic Content ProvisionsDomestic Content Provisions attempts to reserve some of the value added and some of th
9、e sales of product components for domestic suppliers.For example,This kind of policy would stipulate that a given percentage if the value of a good sold in the United States must consist of U.S.components or U.S.labor.Export subsidyAn export subsidy,which is really a negative export tax or a payment
10、 to a firm by the government when a unit of the good is exported,attempts to increase the flow of trade of a country.Nevertheless,it distorts the pattern of trade from that of the comparative-advantage pattern and,like taxes,interferes with the free-market flow of goods and services and reduces worl
11、d welfare.The conditions for the existence of export subsidies:The real subsidies exist;It gives great impact,damage or threat on the industries of imported country;The subsidies and the damage have direct relationship.Dumping The products are sold with the price which is less than that in the imported country.The conditions for the existence of Dumping:The real dumping exist;It gives great impact,damage or threat on the industries of imported country;The dumping and the damage have direct relationship.How to evaluate the price of the imported goods?
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