Trade barriers: what you need to know (2024)

A trade barrier is something that slows down or stops your company from exporting goods or services to an overseas market.

How to check for trade barriers

Check for barriers to trading and investing abroad to see if there are any trade barriers in your chosen market.

You will be able to see barriers to trade that:

  • may currently affect you exporting goods, providing services or investing in a specific country
  • have been resolved

About the Check for barriers to trading and investing abroad service

This is an information only service which does not indicate the ease or difficulty of trading with a particular market.

The trade barriers listed may not stop you from entering a market, you may wish to carry out your own research when making decisions.

We do not publish a complete list of reported trade barriers, as not all are suitable for publication. We do not publish barriers that:

  • can identify a company
  • affect imports into the UK
  • are sensitive, either politically or for security reasons
  • do not have enough information
  • need further investigation

Newly reported trade barriers will not appear immediately as they need to be reviewed. The ‘date reported’ on the service is the date trade barriers are added to our internal system.

For more information see the disclaimer.

How to report a trade barrier

Before you report:

  • check that your problem is a trade barrier - see examples of barriers to goods and barriers to services
  • see if it has already been reported on the check for barriers to trading and investing abroad service
  • be ready to include as much information as you can about the barrier

If you need urgent help with a trade barrier

Consider contacting your local British embassy, consulate or high commission if your barrier requires urgent resolution, for example because you:

  • have perishable goods or livestock blocked in transit
  • are at immediate risk of missing a commercial opportunity
  • are at immediate risk of not fulfilling a contract

They may be better placed to help you because they understand local business practices and have the same local working hours.

What happens next

You’ll get an email from the Department for Business and Trade (DBT) within 5 working days of reporting a trade barrier. You may be asked for more information.

DBT might be able to help resolve your barrier. For example, overseas staff could use their relationships with local governments and organisations to find and resolve the cause of the delay.

For longer-term, more complex barriers, DBT may decide to:

  • explore a diplomatic resolution
  • discuss strategic barriers at overseas ministerial visits
  • start government-to-government talks
  • raise the barrier with the World Trade Organization (WTO)
  • feed into Free Trade Agreement (FTA) negotiations

What is a barrier to goods

If you’re exporting goods, trade barriers can include:

  • customs procedures: for example, lengthy procedures that delay goods getting to market

  • problems with enforcing international rules and regulations: for example, a lack of regulatory measures for products or services, or non-compliance with WTO regulations

  • environmental, safety or quality regulations: for example, restricting goods that could be harmful to the local environment

  • government procurement restrictions: for example, conditions that give local businesses an advantage over foreign competitors in winning government contracts

  • import quotas or price controls: for example, limits on the amount of goods that can be imported

  • packaging, labelling or design regulations: for example, overly specific requirements for information that must be on packaging

  • poor protection of intellectual property rights: for example, failure to respect the legislation of patents, trademarks, industrial design, layout designs of integrated circuits, copyright, geographical indications or sharing trade secrets

  • requirements for goods to be locally produced: for example, a government demanding that a percentage of goods must be made domestically

  • restrictions on live animals, or animal and plant products: for example, a ban on a UK meat based on inaccurate ideas about animal health risks

  • requirements to use local assets, components or workers: for example, being required to train and use local workers

  • rules of origin issues: for example, problems with requirements for evidence demonstrating where goods were made

  • state-granted monopolies or exclusive rights: for example, a government granting one or more private companies the sole right to operate in a particular market

  • testing, inspection and certification procedures: for example, overly complex assessments to show produce complies with technical regulations or standards

  • unfair use of state help, subsidies or application of competition rules: for example, competition law applied in an unfair way to target foreign firms or protect domestic firms

What is a barrier to services

If you’re exporting services, trade barriers can include:

  • difficulty accessing data or restrictions on storing or sending data: for example, limits on cross-border transfer of personal information

  • problems with enforcing international rules and regulations: for example, a lack of regulatory measures for products or services, or non-compliance with WTO regulations

  • fees that only apply to foreign service suppliers: for example, unnecessary charges on foreign suppliers that give an advantage to domestic suppliers

  • government procurement restrictions: for example, the host government deliberately creating conditions that give local businesses an advantage over foreign competitors in winning government contracts

  • poor protection of intellectual property rights: for example, failure to respect the legislation of patents, trademarks, industrial design, layout designs of integrated circuits, copyright, geographical indications or sharing trade secrets

  • limitations on access to key infrastructure: for example, barriers to foreign service suppliers opening a local bank account or registering websites with a local domain name

  • local presence requirements: for example, requirements for a service supplier to be a resident or from a local enterprise

  • price controls: for example, controlling the price of imported services so they don’t have a price advantage over domestic services

  • qualification requirements: for example, a requirement for foreign suppliers to have local qualifications

  • restrictions on foreign entry or movement of people: for example, difficulty dealing with visa costs, arranging visas, residency or nationality requirements or restrictions on buying land as a foreign service supplier

  • restrictions on business structure: for example, requirements to operate under a certain structure as a business, legal entity or joint venture

  • restrictions on investment: for example, a limit on how much a supplier can invest in the country they’re exporting to

  • requirements to use local assets, components or workers: for example, being required to train and use local workers

  • restrictions on business names: for example, restrictions on service suppliers operating under a business name

  • state-granted monopolies or exclusive rights: for example, a government granting one or more private companies the sole right to operate in a particular market

  • taxes that protect or favour local suppliers: for example, import duties or taxes, other than tariffs, that favour domestic firms over foreign competitors

  • testing, inspection and certification procedures: for example, overly complex assessments to show compliance with technical regulations or standards

  • unfair use of state help, subsidies or application of competition rules: for example, competition law applied in an unfair way to target foreign firms or protect domestic firms

  • unfair advantages to state-owned enterprises: for example, special rights or privileges, government funding, or exemptions from laws and regulations being given to state-owned enterprises

Further information

Pages to provide additional help:

data.gov.uk: This is the government’s collection of data, here you can download a spreadsheet of all published trade barriers on the check for barriers to trading and investing abroad service.

Check how to export goods: Find information about how to move goods from the UK to the rest of the world, including rules, restrictions, taxes, duties and export documentation.

TRAINS: The United Nations Conference on Trade and Development (UNCAD) global database of Non-Tariff Measures (NTMs) based on official regulations.

ePing notifications: Set up email notifications with the World Trade Organization (WTO) to get early warnings of possible future trade problems.

Published 5 September 2019
Last updated 21 December 2020 +show all updates

  1. Added section on checking for an international trade barriers, link to the service and added further information section.

  2. First published.

Contents
Trade barriers: what you need to know (2024)

FAQs

Trade barriers: what you need to know? ›

The most common barrier to trade is a tariff–a tax on imports. Tariffs raise the price of imported goods relative to domestic goods (good produced at home). Another common barrier to trade is a government subsidy to a particular domestic industry. Subsidies make those goods cheaper to produce than in foreign markets.

What do you know about trade barriers? ›

A trade barrier refers to any regulation or policy that restricts international trade, especially tariffs, quotas, licences etc.

Why should we have trade barriers? ›

Free trade benefits consumers through increased choice and reduced prices, but because the global economy brings with it uncertainty, many governments impose tariffs and other trade barriers to protect the industry.

What do all trade barriers have in common? ›

Most trade barriers work on the same principle: the imposition of some sort of cost (money, time, bureaucracy, quota) on trade that raises the price or availability of the traded products.

What can be done to avoid trade barriers? ›

What are the best ways to avoid trade barriers and risks?
  • Know your market. Be the first to add your personal experience.
  • Choose your partners wisely. Be the first to add your personal experience.
  • Negotiate your terms. ...
  • Manage your logistics. ...
  • Mitigate your risks. ...
  • Monitor your performance. ...
  • Here's what else to consider.
Sep 20, 2023

How do trade barriers affect me? ›

More effects of trade barriers include the way in which they cause a limited choice of products. If a country can't import any goods, the only goods that will be available for its citizens are the goods the country produces by itself. This is what leads to consumers' limited choice.

What are the 4 types of trade barriers? ›

TANC classifies foreign trade barriers within four broad types: Border Barriers, Technical Barriers to Trade, Government Influence Barriers, and Business Environment Barriers.

What are the pros and cons of trade barriers? ›

Advantages to trade protectionism include the possibility of a better balance of trade and the protection of emerging domestic industries. Disadvantages include a lack of economic efficiency and lack of choice for consumers. Countries also have to worry about retaliation from other countries.

Why are trade barriers bad for consumers? ›

How Do Tariffs Hurt Consumers? Tariffs hurt consumers because it increases the price of imported goods. Because an importer has to pay a tax in the form of tariffs on the goods that they are importing, they pass this increased cost onto consumers in the form of higher prices.

Who is hurt by trade barriers? ›

Barriers hinder the free flow of goods and services between countries and hurt economies and consumers alike.

What are the 3 different types of trade barriers? ›

In general, trade barriers keep firms from selling to one another in foreign markets. The major obstacles to international trade are natural barriers, tariff barriers, and nontariff barriers.

How many trade barriers are there? ›

There are several types of trade barriers, but the four main types are protective tariffs, import quotas, trade embargoes, and voluntary export restraints. A protective tariff is a tax imposed on imported goods, making them more expensive than domestic goods(Eg. customs duties) .

What are three problems trade barriers might cause? ›

Introduction. Trade barriers, such as tariffs, have been demonstrated to cause more economic harm than benefit; they raise prices and reduce availability of goods and services, thus resulting, on net, in lower income, reduced employment, and lower economic output.

Why trade barriers are removed? ›

In New Economic Policy in 1991, the government wished to remove these barriers because it felt that domestic producers were ready to compete with foreign industries. It felt that foreign competition would in fact improve the quality of goods produced by Indian industries.

Should we try to remove all barriers to trade? ›

Member countries with relative cost advantages and other factor endowments will gain as the removal of barriers to trade decrease transaction costs and lead to increased specialization.

What are trade barriers and what do they do? ›

Trade barriers are legal measures put into place primarily to protect a nation's home economy. They typically reduce the quantity of goods and services that can be imported.

What is a trade barrier quizlet? ›

Trade Barrier. Anything that slows down or prevents one country from exchanging goods with another, Tariff, quota, embargo. Exchange rate. The price of one nation's currency in terms of another nation's currency.

What are 3 trade barriers and their definitions? ›

There are three types of trade barriers: Tariffs, Non-Tariffs, and Quotas. Tariffs are taxes that are imposed by the government on imported goods or services. Meanwhile, non-tariffs are barriers that restrict trade through measures other than the direct imposition of tariffs.

What are the three types of trade barriers and their definitions? ›

There are several types of trade barriers, but the four main types are protective tariffs, import quotas, trade embargoes, and voluntary export restraints. Protective Tariffs. A protective tariff is a tax imposed on imported goods, making them more expensive than domestic goods(Eg. customs duties) .

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