Mint Explainer: Why do non-tariff barriers hinder Indian exports?
Economic Advisory Council to the Prime Minister (EAC-PM), are regulations and restrictions that ensure quality of products and protect human, plant and animal health. These measures are largely used for agriculture or animal-origin products that are directly used for human consumption. The EAC-PM report further clarifies that there exists a thin line between non-tariff measures and non-tariff barriers and that all non-tariff measures cannot act as non-tariff barriers.
India’s exports of mango and grapes to China face high non-tariff barriers. Indian authorities submitted a dynamic list from Agricultural and Processed Food Products Export Development Authority (APEDA), but the time-taking process required by Chinese Customs results in high transaction cost and additional time. Pharma exports to China also face rejection due to non-compliance found while testing.
According to the EAC-PM report, there is no redressal mechanism, and the ruling of the lab was considered final, wherein there is no choice to appeal or even contest the results, causing “heavy financial cost" on Indian companies. What are the kinds of non-tariff barriers faced in the US & EU by exporters? Indian exports to the US face authorization requirements that are complex and time-consuming, and include several agreements and protocols. Fulfilling such requirements creates the unnecessary burden of high costs and delay in the export of consignments.
GTRI says that the US banned import of wild shrimp from India in May 2018, terming Indian fishing practices as non-compliant with US regulations to protect sea turtles. The US insisted on equipping fishing gear with Turtle Excluder Devices (TED) to ensure no turtle is harmed during fishing. For export of
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