The barriers to international trade By Fei CIA4U May 23rd

Learning Goals• Be able to identify the barriers to international trade• Be able to explain the consequences of those barriers• Be able to explain why countries have trade barriers• Give examples of current trade barriers

First learning goal

• Be able to identify the barriers to international trade

• Trade barriers are government-induced restrictions on international trade.

• There are the forms of barriers to international trade

• Tariff barriers

1)tariff reduction

2)tariff classification

3)tariff peaks

4)tariff quotas

Non-tariff barriers

1)import licensing2)export licensing3)import quotas4)import prohibition5)technical barriers to trade6)export restrictions7)government procurement

Discussion

– Could you give a example of tariff reduction?– For example, the member of WTO do not reach t

he level of tariff Concession as they promised.– Could you give a example of tariff classification?– Like the customs officer have administrative dis

cretion,so we cannot predict the applied tariffs for the same product

2nd Learning Goal

Be able to explain the consequences of those barriers

• Discussion• What are the reasons for individual countries to put controls on trade?what do you think?

The consequences of tariffs

• Advantage of tariffs• protecting its domestic pro

duction• increasing government rev

enues• achieving rather precise ob

jectives• Disadvantage of tariffs• increasing the cost of impo

rts to the costomer• difficult to be reduced or el

iminated

The consequences of non-tariffs

• Adventages• It can provide greater flexibility in bar

gain and administration• More concealable• More certain and precise as trade rest

raint • Disadvantages• Increased the difficulties to internation

al trade• Exert no pressure to keep domestic pri

ce down• Inequities and corruption may occur in

the allocation of quotas both in importing countries and exporting countries

3rd Learning goal

• Be able to explain why countries have trade barriers

• Reasons• 1)To protect their own industries aga

inst the competition of foreign goods.• 2)Differents tradition, differents cultu

res• 3)Awareness of health and safety iss

ues was increased

Example of tariffs bariers

• World Economic Crises between 1929 and 1933, in order to get out of crises,the capitalist country raised tariffs,limited the input of foreign goods.All of this is to protect home market .

4th Learning Goal

Give examples of current trade barriers

For China

• Nontariff Barriers• Tariff-Rate Quotas (TRQs) • Border Trade • Customs Valuation • Export Subsidies

For Canada

• In 2010, Canada announced the unilateral• elimination of• most favored nation (MFN)• tariffs on imported manufacturing inputs. Most tariffs were• eliminated immediately. The Canadian government

announced further ta• riff relief on 70 items in Canada‟s• manufacturing sector in November 2011. Canada has pledged

to eliminate all MFN tariffs on imported• machinery and equipment by 2015.

Now , it is the game time~~~

Keys to exercises

• Fill in the blanks with the words given below.• Tariffs Non-tariffs• ( ) ( )• ( quotas ) (import licensing)• (classification) (technical barriers to trade)• ( peaks ) (export restriction)• ( reduction ) ( subsidies )• (government procurement)• quotas,classification,export restriction, subsidies,reduction,government procurement,import licensing,peaks ,technical barriers to trade

True or false

(1)Tariff barriers are the most common form of trade restriction.( )

(2)Non-tariff barriers are less visible than tariffs, but they are more effective restrictions on trade.( )

(3)Through using the import quotas, the importing countries can keep their domestic price down.( )

Answers:T T F

The 1st Learning goal is created by myself

• Be able to know the solutions to solve the tariffs

Solutions

• Through exchanges and negotiations ,to break the barriers to trade

• Study the international trade laws• Keep the reputation for quality• Learn to work to upgrade your own industries when you meet

the tariff barriers• Safeguard our benefits when we are punished

Discussion

• Do you know other methods to solve the this problem?

My 2nd learning goal

• Be able to find the characters of tariff barriers

Types of characters

• universality• systematicnes• validit

dualism controversial elusive

Work Cited

• http://globalserve.com.cy/services/cyprus-tax-consultants/• http://zzy.baike.com/article-59165.html• http://www.google.com.hk/search?

newwindow=1&safe=strict&client=aff-1616dh&hs=0nV&affdom=1616.net&channel=t4&source=lnms&biw=1349&bih=684&tbm=isch&sa=1&q=free+trade&oq=free+trade&gs_l=img.3..0j0i24l2j0i12i24j0i24l6.10484.10695.0.11276.2.2.0.0.0.0.78.152.2.2.0...0.0...1c..14.img.WqEt_82nJeM

• http://www.ustr.gov/sites/default/files/Canada_0.pdf

• http://www.ustr.gov/sites/default/files/Canada_0.pdf• http://en.wikipedia.org/wiki/Trade_barrier

• http://www.baike.com/wiki/%E8%B4%B8%E6%98%93%E5%A3%81%E5%9E%92

• http://image.baidu.com/i?tn=baiduimage&ct=201326592&cl=2&lm=-1&st=-1&fm=result&fr=&sf=1&fmq=1369310955488_R&pv=&ic=0&nc=1&z=&se=1&showtab=0&fb=0&width=&height=&face=0&istype=2&ie=utf-8&word=trade+barriers

• http://www.pixmac.cn/picture/%E5%85%A8%E7%90%83%E5%8C%96%E8%B4%B8%E6%98%93%E5%A3%81%E5%9E%92/000078284771

• http://duduhasu.blogspot.ca/• http://tradetimes.co.uk/what-are-the-disadvantages-of-trade-

barriers.html• http://www.123rf.com/photo_5383561_trade-barriers-

globalization-international-free-trade-economy-illustration-with-globes.html

• http://www.twcenter.net/forums/showthread.php?407006-Interesting-Discovery-on-Land-Trade

• Thank you for watching~~~~