Which of the following is NOT an example of non-tariff barriers?
Tap an option to check your answer.
1 mark, −0.333International EconomicsTrade policy: tariffs, quotas and protectionQuotas, tariff-quota equivalence and non-tariff barriersModerateabout 2 min
GATE 2023 Question 33: Trade policy: tariffs, quotas and protection
Answer and worked solution
Answer: (D)
(A) Voluntary export restraints, (B) domestic-procurement preferences, and (C) sanitary/phytosanitary measures are all classic examples of non-tariff barriers — trade restrictions that work through quotas, standards, or preferences rather than through a tariff (price-based duty).
Antidumping laws (D), by contrast, work by imposing an additional duty (an antidumping tariff) on goods found to be dumped below fair value — this is fundamentally a tariff-based (price) instrument, not a non-tariff barrier, even though it's a form of trade protection.
Therefore the answer is (D).
The trap: (C) Imposition of sanitary and phytosanitary measures on agricultural produce.
Sanitary and phytosanitary (SPS) measures can feel like a 'legitimate health regulation' rather than a 'trade barrier' in casual framing, tempting some students to pick (C) as the odd one out — but SPS measures are textbook-standard non-tariff barriers regardless of whether the underlying health rationale is genuine, whereas an antidumping duty is structurally a tariff, which is the actual distinguishing feature the question is testing.
Trade policy: tariffs, quotas and protection has come up 63 times in 6 exams since 2010.
What this question tests
This question is on Quotas, tariff-quota equivalence and non-tariff barriers, part of Trade policy: tariffs, quotas and protection in International Economics.
Quantity limits on trade and how they compare with tariffs.
TestStop has 15 past-paper questions on this subtopic.
Question from the GATE 2023 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.