The Law and Policy of the World Trade Organization Text, Cases and Materials

INTRODUCTION

There can be no international trade without access to the domestic markets of other countries, and it is essential for traders in goods and services that this access is secure and predictable. Therefore, rules on market access are at the core of WTO law. Market access for goods and services from other countries may be impeded or restricted in many different ways, but two main categories of barriers to market access can be distinguished: (1) tariff barriers; and (2) non-tariff barriers. The category of tariff barriers primarily includes customs duties, but also other duties and charges on imports (and exports). Tariff barriers are particularly relevant for trade in goods; they are of marginal importance for trade in services. The category of non-tariff barriers is a residual category that includes quantitative restrictions (such as quotas) and ‘other non-tariff barriers’ (such as lack of transparency of trade regulation, unfair and arbitrary application of trade regulation, customs formalities, technical barriers to trade, sanitary and phytosanitary measures, and government procurement practices). These ‘other non-tariff barriers’ undoubtedly constitute the largest and most diverse subcategory of non-tariff barriers. Unlike tariff barriers, non-tariff barriers significantly affect both trade in goods and trade in services.

As set out in the Preamble to the WTO Agreement, WTO Members pursue the objectives of higher standards of living, full employment, growth and economic development by:

The substantial reduction of tariff and non-tariff barriers to trade is, together with the elimination of discrimination, the key instrument of the WTO to achieve its overall objectives.1 As discussed in Chapter 1, few economists and trade policy-makers dispute that further trade liberalisation can make a significant contribution to the economic development of countries. The possible annual increase in global GDP resulting from the ongoing Doha Round negotiations on the reduction of customs duties is conservatively estimated to be US$63 billion. Significantly, developing-country Members are expected to benefit more than developed-country Members from a successful conclusion of these tariff negotiations.

As already noted in Chapter 1, some barriers to market access, such as quantitative restrictions on trade in goods, are prohibited, while other barriers, such as customs duties, are allowed in principle and are only limited to the extent of a Member's specific agreement.