What are non-tariff barriers?

Non-tariff barriers refer to trade restrictions that do not take the form of tariffs but still create obstacles to trade. These may include various regulations and policies that countries implement to control the amount and type of trade that occurs. Examples of non-tariff barriers include quotas, import licensing, standards for quality and safety, customs procedures, and other administrative measures that can affect the availability and cost of importing goods.

Understanding this concept is crucial for recognizing how trade can be indirectly restricted through means other than direct price increases (tariffs). For instance, while tariffs increase the cost of imported goods making them less competitive, non-tariff barriers can deter imports by complicating compliance or increasing the effort needed to bring products into a market.

The other options do not accurately describe non-tariff barriers. Financial incentives for exporters generally refer to support provided by a nation's government to promote exports, while monetary fees imposed on imports align more with tariff structures rather than non-tariff barriers. Restraints based solely on geography may relate to logistical concerns but do not encompass the broader spectrum of regulations that constitute non-tariff barriers.