What are international trade barriers according to the Vietnamese view?

by Thu Huong

Today, LSX Lawfirm will give you an article about: “What are international trade barriers according to the Vietnamese view?”, as follows:

What are international trade barriers?

The term “international trade barrier” or “trade barrier” is used quite commonly. However, so far there is no specific definition of barriers to trade. In fact, the concept of barriers in trade is only relative.

In order to protect the market for domestic enterprises and deal with the flow of goods imported from outside, countries will set a series of policies and measures to limit imports.

If policies and regulations hinder the export activities of enterprises and this country, they are considered as trade barriers, but for other businesses and countries, it is not necessarily the case. It becomes a barrier if the tariff rate is really high or higher than the rate levied on the same goods of another country. As with other measures, it is not in itself a barrier as long as the measure does not violate national treatment, but it becomes a barrier if it interferes with another country’s trade. .

Why set up international trade barriers?

International trade barriers are measures that limit the quantity of goods imported. This greatly affects the domestic economy. But international trade barriers need to put in place for the following purposes:

Macro-regulating the economy, guiding domestic consumption

Trade barriers are applied for many different purposes, but the first priority is still to regulate the macro economy. Depending on the situation of domestic production and consumption, the Governments of countries must take measures to regulate the quantity
of imported goods in accordance with consumer demand but still ensure the benefits for
domestic producers. and at the same time bring into full play the potentials of the country.

Protecting national security, social ethics and protecting the environment

In order to ensure national security, measures to ban or minimize the import of goods that are weapons, explosives and means of war, especially weapons and poisons capable of mass destruction are: very necessary.

Prohibit the import of unhealthy cultural products, addictive substances that destroy people’s morality and conscience, and affect the morality of the whole society.

One more common problem that the world is currently dealing with is environmental protection, which has also created barriers to the movement of certain harmful products from one country to another.

Types of international trade barriers

Tariffs (Tariffs)

When goods moving through a country’s border gate taxed, it is Tariff. Tariff is a financial tool to regulate import and export activities or protect domestic production.

Tariffs are an integral part of the prices of exported or imported goods. Low or high commodity prices affect the purchasing power of the market and the volume of exported and imported goods.

To limit import and export, the State will apply high tariffs; On the contrary, to encourage import and export, the State applies low tariffs.

Taxes are a very important source of revenue in the state budget and are also a tool to discriminate in trade relations and put pressure on customers in the negotiation process.

Non-tariff barriers

Non-tariff barriers are barriers that restrict trade through other means than the imposition of direct tariffs.

They can include measures such as content and quality requirements for imported goods or subsidies for domestic producers.

Quota (Quota)

A quota is the maximum limit on the volume (or value) of goods allowed to be imported or exported during a period (usually a year).

Quota is a state management measure that directly stipulates the amount of goods allowed to be imported or exported in order to achieve the goal of protection.

Comparison of international commercial practices Incoterm 2010 and 2020 according to Vietnamese view

Theories of international trade to master in Vietnam

Are there any political purposes for international trade barriers?

Barriers to international trade are easy for countries to use as political tools. 
Through trade barriers a country can embargo goods or trade activities against the country with political purposes. 
This is very unfair and greatly affects the economy of the embargoed country. 
Since then, it has profoundly influenced the politics of that country.

How does international trade barriers protect customers?

One of the most important purposes of the application of trade barriers is to protect consumers. 
In the control of imported goods, the requirements of technical standards, hygiene and quarantine, packaging and labeling requirements put the safety of consumers first. 
The fences contribute to prevent unsatisfactory goods from affecting the health and safety of people.

Contact LSX Lawfirm

Finally, hope this article is useful for you to answer the question about: “What are international trade barriers according to the Vietnamese view?”. If you need any further information, please contact  LSX Law firm : +84846175333 or Email: hoangson@lsx.vn

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