Question

What is the general trend of trade barriers over recent decades: higher, lower, or about the same?

Short answer

The general trend of trade barriers over recent decades has been a decrease in traditional barriers, such as tariffs, due to free trade agreements and efforts by the World Trade Organization (WTO). However, there has been an increase in non-tariff barriers such as regulatory barriers, subsidies, and technical standards as countries shift to more subtle methods of protectionism.

Step-by-step solution

Define Trade Barriers

Trade barriers are government policies and regulations that restrict international trade. These barriers can take various forms, such as tariffs, quotas, and non-tariff barriers (NTBs), which include regulations and restrictions that hinder the importation or exportation of goods.

Research about Trade Barriers in Recent Decades

In order to analyze the trend of trade barriers, we can look into several reputable sources, such as the World Trade Organization (WTO) reports and World Bank data on international trade policies. These sources can provide insights and data about how governments have implemented trade barriers in the recent decades.

Present the General Trend of Trade Barriers

According to several sources, the general trend of trade barriers over recent decades has been a decrease in conventional barriers like tariffs. This is largely because of free trade agreements, such as the North American Free Trade Agreement (NAFTA), the European Union (EU) expansion, and the ongoing efforts of the World Trade Organization (WTO) to promote trade liberalization. However, non-tariff barriers (NTBs) have seen a relative increase as countries have shifted their focus from outright restrictions to more subtle methods of protection, such as regulatory barriers, subsidies, and technical standards.

Give Examples of Decreased Trade Barriers

Some examples of decreased trade barriers include lower average tariff rates worldwide. For instance, the average global tariff rates decreased from more than 20% in the early 1980s to around 10% by the mid-1990s and further dropped to below 5% by the mid-2010s. This drop in tariff rates can be attributed to efforts made by international trading partners and global organizations such as WTO in promoting trade liberalization.

Give Examples of Increased Non-Tariff Barriers

While more traditional trade barriers like tariffs have generally been lowering, the use of non-tariff barriers has seen an increase. Some examples include an increase in the number of technical barriers to trade and the rise of domestic subsidies in various sectors, such as agriculture. These NTBs serve as indirect methods of protectionism, making it more difficult for foreign goods to enter domestic markets. In conclusion, the general trend of trade barriers over recent decades has been a decrease in traditional barriers, such as tariffs, but an increase in non-tariff barriers. Therefore, while the trade barriers have become "lower" in terms of tariffs, they have been increasingly substituted by more subtle and indirect methods, leading to an overall shift in the nature of these barriers.