Non-Tariff Measures Drive Up Global Trade Costs, UNCTAD Reports
A new UNCTAD report highlights that non-tariff measures (NTMs) are increasingly contributing to global trade friction and costs, overshadowing traditional tariffs. These complex regulations, often beyond customs, create significant hurdles for international commerce and supply…
The latest Global Trade Update from UN Trade and Development (UNCTAD) reveals that non-tariff measures (NTMs) are becoming a primary source of friction and increased costs in international trade. While public attention often focuses on tariffs and protectionist duties, the report emphasizes that the more subtle and complex NTMs are having a profound impact on global commerce.
These measures extend beyond simple customs duties, encompassing a wide array of regulations, standards, and administrative procedures that can be intricate and challenging to navigate. The report suggests that the modern trade landscape is increasingly shaped by these hidden costs and complexities.
For freight forwarders and shippers, this trend signifies a growing need for expertise in regulatory compliance and documentation. The increasing complexity of NTMs can lead to delays, higher operational costs, and potential penalties if not managed effectively. Forwarders must invest in understanding diverse national regulations and developing robust compliance strategies to ensure smooth cargo movement and mitigate risks for their clients. This could also impact transit times and require more detailed pre-shipment planning.