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The U.S. has been importing baby toys from China, but this year kids are getting sick from these toys. After testing the toys high dosages of lead are found in the paint used on these toys. The U.S. government now bans the import of these baby toys from China until they are deemed safe again. This is an example of a Nontariff Barrier.
What is Nontariff Trade Barrier ?
It refers to the practice of government , where the government has the capability to restrict any trade between two countries , is referred to as nontariff trade barrier . Certain barrier are placed to stop the trade , which are called the trade barrier .The method is used for any economic or political factors .
Nontariff barriers are trade barriers that are used whereby the import and export of goods and services are restricted. It should be noted that the restriction is not by tariffs but can include embargoed, quotas, sanctions, and levies.
Therefore, we can conclude that this is an example of a Nontariff Barrier.
Learn more about Nontariff barriers on:
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