Legal Definitions - NTM

NTM stands for NONTARIFF MEASURE.

A Nontariff Measure refers to any policy, regulation, or practice, other than a standard customs duty (tariff), that can affect the international trade of goods and services. These measures can either restrict or facilitate trade and are often implemented to achieve various domestic policy objectives, such as protecting public health, safety, or the environment, or supporting local industries.

• Example 1: Food Safety Regulations

  Country A mandates that all imported fresh produce must undergo a specific pesticide residue test and receive a certification from an approved laboratory in the exporting country before it can be sold domestically. This is a Nontariff Measure because it is not a tax on imports, but rather a regulatory requirement that adds cost and complexity for foreign producers. It can potentially limit the flow of produce from countries that cannot easily meet the specified testing and certification standards, thereby affecting trade.

• Example 2: Import Quotas

  Nation B imposes a quota limiting the import of certain types of steel from Nation C to a maximum of 500,000 tons per year. This is a Nontariff Measure because it is a quantitative restriction on trade, not a tariff. It directly controls the volume of a specific good entering the country, often to protect domestic steel manufacturers from excessive foreign competition or to manage supply.

• Example 3: Technical Standards for Electronics

  Country D requires all imported electronic devices, such as smartphones and laptops, to comply with a unique set of electrical safety and electromagnetic compatibility (EMC) standards that differ significantly from international norms. Manufacturers must obtain a specific local certification for each product model. This is a Nontariff Measure because it's a technical regulation, not a tax. While intended to ensure consumer safety and prevent interference, it can act as a barrier to trade for foreign manufacturers who must invest time and resources to redesign products or conduct additional testing to meet these specific domestic standards.