Barriers to trade

what is an import licence?

licence issued by a national govt authorising the importation of goods from a specific source

example of import licences

UK controls on exports of goods with a military application AKA dual-use goods

what are import quotas?

physical limits on the quantity of goods that can be imported

what are subsidies?

grants/allowances awarded to domestic producers to reduce their costs, making them more competitive

also export subsidies are used to encourage domestic producers to sell their goods abroad

example of subsidies

Common Agricultural Policy (CAP) in the EU distributes farming subsidies to member states

what are voluntary export restraints?

diplomatic strategies offered by the exporting country to appease the importing country and deter it from imposing trade barriers

example of voluntary export restraints

in 1980s Japanese car makers were put under pressure from US competitors to limit their exports of cars to the US market

this made Japanese cars less available in the US and raised the price of them, making the US cars more attractive

what are embargoes?

partial/complete prohibition of commerce and trade with a particular country, often for political reasons

what are trade restrictions

other import restrictions - may be based on quality/standard of goods or how they are produced

example of trade restrictions

the EU restricts the import of goods knowingly produced using child labour