In our trade global economy almost anything can be to the cause for trade barriers. The most common barriers to trades are tariffs, quotas, and non-tariffs barriers.Trade barriers are government restrictions on international trade and it can be created unintentionally. Unintentional trade barriers could be terrorism, piracy, natural disasters, law and regulations and political issues.
On September 11th 2001, the twin towers of the New York's World Trade Center collapsed during a terrorist attack. It created new kind of trade barrier which is U.S. border security that makes it hard to trade between U.S. and the other countries.
This attack on the U.S. had a very negative impact on the country's economy, imported goods and a lot of which we are still dealing today. After 9/11, industries like tourism and travel and immigration were areas that have been negatively affected by this. The increase in security at the ports, delay in the delivery of goods and parts to U.S. manufactures created an unintentional trade barrier.
Another unintentional barrier was created by the nature, like Japanese Earthquake and Tsunami of 2011. During that time, economy of Japan, world trade and financial market had negative impact from the Japanese Earthquake.
The U.S. Food and Drug Administration had banned import of vegetable, fruit and milk products. The European Union, Australia, Hong Kong, Philippines, Singapore, India and Canada had required increased surveillance of food products from Japan. Big factories like Honda, Nissan and Toyota were shut down and were unable to supply the product to the world wide. US $235-310 billion worth of damage to the world's third-largest economy.
Unintentional trade barriers affect a nation's openness to trade. They decrease productivity, complicate trade and slow down the movement of good and service between countries . So, no country wants to face unintentional trade barriers.
No comments:
Post a Comment