UNCTAD Report Highlights Rising Costs of Non-Tariff Measures in Global Trade

Key Facts

• NTMs impose greater export costs than tariffs in 88% of countries worldwide.
• Tariffs increased in 2025 by approximately 10% in developed countries, 16% in developing countries, and 18% in least-developed countries (LDCs).
• LDCs lose nearly 10% of their exports to G20 markets due to challenges in meeting NTM requirements.
• NTMs include mandatory standards, product requirements, licensing conditions, health and safety regulations, and other administrative procedures.
• Poor transparency of NTMs acts as a hidden barrier; enhancing transparency alone could reduce related trade costs by about 19%.
• Regulatory cooperation—such as under the African Continental Free Trade Area—can reduce compliance costs in agriculture and manufacturing by 30% to 40%.

Background & Context

Non-tariff measures have become significant trade barriers alongside a renewed rise in tariffs, especially following the COVID-19 pandemic, Russia’s invasion of Ukraine in 2022, and subsequent interventionist trade policies by major economies. These measures impose technical, sanitary, and administrative requirements that exporters, particularly in developing and least-developed countries, struggle to meet due to limited capacity and infrastructure, such as lack of local testing or certification agencies. The dominance of NTMs over tariffs reshapes global trade flows, often excluding smaller or poorer exporters from accessing high-value markets. The report stresses that reductions in tariff barriers may be offset by increasing non-tariff related costs unless transparency and regulatory harmonization are improved.

Why This Matters for Exams / Exam Relevance

This UNCTAD report is highly relevant for exams focused on international trade, economics, and development. It provides contemporary evidence on the evolving nature of trade barriers, illustrating the shift from traditional tariffs to more complex, non-tariff measures and their varying impacts across countries. Key themes include trade policy interventions, challenges faced by developing and least-developed countries, the role of transparency and regulation in trade facilitation, and emerging trade agreements like the African Continental Free Trade Area. Understanding these dynamics supports exam topics related to global trade challenges, economic development, and international organizations.

Points to Remember

• NTMs currently impose greater costs than tariffs for most countries’ exports (88%).
• Tariffs rose sharply in 2025: +10% (developed), +16% (developing), +18% (least-developed countries).
• Least-developed countries lose about 10% of exports to G20 markets owing to inability to comply with NTMs.
• NTMs encompass standards, licensing, health regulations, and administrative requirements.
• Improving transparency of NTMs could reduce trade costs by around 19%.
• Regulatory cooperation (e.g., in Africa) could lower compliance costs by 30-40% in key sectors.
• Addressing NTMs is critical to ensuring developing countries benefit from global trade liberalization efforts.