How are non-tariff barriers defined?

Non-tariff barriers are defined as restrictions that limit imports or exports without the application of tariffs. These barriers can take various forms, such as quotas, import licensing requirements, standards and regulations, subsidies, and other measures that are not based on direct taxation of imported goods.

The significance of recognizing non-tariff barriers lies in their ability to impact international trade flows without the straightforward application of tariffs or duties, making them sometimes more complex and less transparent. For businesses engaged in international trade, understanding the nature of these barriers is crucial, as they can significantly affect market access and competitiveness in foreign markets.

While some options refer to different concepts, the essence of non-tariff barriers is encapsulated in the idea that they limit trade without relying on tariffs, thus making this choice the most accurate definition.