Increased use of Regulatory Measures Creates New Challenges for WTO
NON-TARIFF measures, such as regulatory standards for manufactured and agricultural goods, can have a significant impact on trade - possibly even more than tariffs - according to the latest edition of the WTO's flagship publication published on 16 July 2012. Director-General Pascal Lamy said “a clear trend has emerged in which NTMs are less about shielding producers from import competition and more about the attainment of a broad range of public policy objectives.”
The World Trade Report 2012 examines why and how governments use non-tariff measures, including domestic regulation in services. Such measures can serve legitimate public policy goals, such as protecting the health of consumers, but they may also be used for protectionist purposes. The Report reveals how the expansion of global production chains and the growing importance of consumer concerns in richer countries affect the use of non-tariff measures. It also reports that such measures represent the main source of concerns for exporters.
The focus of the Report is on technical barriers to trade (TBT) regarding standards for manufactured goods, sanitary and phytosanitary (SPS) measures concerning food safety and animal/plant health, and domestic regulation in services.
The Report identifies several challenges for international cooperation, and the WTO more specifically. First, the transparency of non-tariff measures needs to be improved. The newly created WTO database I-TIP (Integrated Trade Intelligence Portal) will help in improving transparency. Secondly, more effective criteria are needed to identify why a measure is used. Thirdly, the increase in global production chains calls for deeper integration and regulatory convergence. Lastly, capacity-building is a vital element in improving international cooperation.