Legal Definitions - nontariff measure

Definition: A nontariff measure is an official policy that affects international trade conditions, excluding tariffs. It can either increase or restrict trade. Nontariff measures are abbreviated as NTM and are different from nontariff barriers.

Examples:

• Quotas: A limit on the quantity of a product that can be imported or exported.
• Embargoes: A complete ban on trade with a particular country or region.
• Product standards: Regulations that require products to meet certain safety, health, or environmental standards before they can be imported or sold in a country.

The examples illustrate how nontariff measures can either increase or restrict trade. Quotas and embargoes limit the amount of goods that can be traded, while product standards can increase trade by ensuring that products meet certain quality requirements.