Non-tariff measures (NTMs) now drive most trade costs-UNCTAD

According to UNCTAD’s “Invisible Barriers: The Costs of Non-Tariff Measures” report, non-tariff measures—such as regulations, mandatory standards, and product requirements—have become the primary driver of modern trade costs. They heavily influence who can trade, what goods are traded, and which markets they can enter.

While tariffs saw a sharp increase in 2025, they remain secondary to the costs imposed by NTMs:

• Tariff Increases (2025): Rose by 10% for developed countries, 16% for developing countries, and 18% for least developed countries (LDCs).
• NTMs vs. Tariffs: Despite these tariff hikes, NTMs impose higher export costs than tariffs for 88% of countries.

The “Double Burden” on Developing Nations

Developing countries and LDCs face an uneven and disproportionate trade burden. They are simultaneously hit by:

1. Rising Tariffs: Experiencing the steepest percentage increases in tariff rates.
2. Complex Regulatory Requirements: Struggling to meet increasingly complex rules and NTMs.

What do NTMs include?

• Technical regulations
• Health and safety requirements (Sanitary and Phytosanitary measures)
• Administrative procedures
• Traditional trade policy instruments (e.g., quotas or price controls)
• Compliance, information, and procedural costs

Key Barriers and Solutions

Because NTMs serve vital public policy goals—such as protecting health, safety, and the environment—they cannot simply be negotiated away. Instead, the focus must be on reducing unnecessary costs through specific reforms:

Barrier	Impact	Solution & Potential Savings
Lack of Transparency	Acts as a hidden barrier; firms struggle to identify which rules apply to their products.	Improve Transparency: Can reduce NTM-related trade costs by around 19%.
Regulatory Divergence	Producers must meet entirely different requirements for each individual market.	Regulatory Convergence: Aligning standards across countries can cut NTM-related costs by 15% to 30%.

Source: UNCTAD