Nontariff barriers are used to protect domestic industry from competition, to protect their own consumers from what the government perceives as unsafe goods, and to generate revenue for the government. They can also be used to target specific countries or regions that the government views as a political nemesis.

Nontariff barriers are sometimes referred to as non-tariff trade measures, non-tariff measures, or NTMs. They are used primarily as a policy tool by governments to limit the entry of foreign goods and services into their domestic markets. They are sometimes used as a protectionist measure to “protect” domestic industries from outside competition.

Nontariff barriers are generally preferred to tariffs because they can be implemented faster, are more flexible, and are less likely to be challenged in the World Trade Organization. This makes them attractive to governments that want to control imports into the country quickly and effectively.

However, nontariff barriers can have significant negative economic impacts, as they can act as a barrier to trade. They drive up prices for consumers and can hurt the competitiveness of domestic industry if foreign goods are unable to enter the market.

Nontariff barriers are a form of trade protectionism that can be used to protect domestic industry and generate revenue to the government. They can often be used to target specific countries or regions, and can be implemented quickly and effectively. While they are an attractive alternative to tariffs, they can have significant negative economic impacts as they can act as a barrier to trade and hurt the competitiveness of domestic companies. It is important that governments look beyond the short-term benefits of these measures when deciding whether to implement them.