Setting a new agenda for sustainable
development
The year 2015 has witnessed a signicant
directional shift in the development paradigm.
Member States of the United Nations negotiated
a new development agenda for 2015–2030
applicable to all countries, not only to those of
the developing world. The primary focus is to
achieve development that is sustainable in the
social, economic and environmental spheres.
Many compelling success stories of economic
development in recent decades are based on
trade-led growth. Much of the growth in least
developed countries relies on rising revenues
from commodities. The post-2015 development
agenda and sustainable development goals
suggest that the world should transform its
natural-resource-dependent growth pattern into
one that is “sustained, inclusive and sustainable”.
1
Trade leads to economic development;
trade policy can ensure sustainability
Trade creates employment opportunities,
generates income, reduces costs for industries
and consumers, motivates entrepreneurs and
attracts investment in essential infrastructure.
Trade and economic development can generate
substantial private and public nancial means to
UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT
No.
37
pursue the social and environmental dimensions
of sustainable development. Table 1 provides an
illustration of the potential linkages between trade
and sustainable development goals.
Certainly, the development impact of trade is not
unconditional. Firstly, economic development
requires an appropriate sequencing of trade
openness as well as an enabling environment of
other policy and non-policy factors.
Secondly, for economic development to become
inclusive, sustained and sustainable, another
layer of conditions applies. For example, a
positive effect on poverty reduction relies on
favourable sectorial growth patterns and inclusive
employment and social policies. The latter are
important to address potential inequalities within
economies as a result of trade.
In this context, and with falling tariffs, non-tariff
measures have moved to the forefront of trade
policymaking. This policy brief argues that the
proliferation of non-tariff measures plays a crucial
role in shaping global trade patterns and their
sustainability.
Not all non-tariff measures are
non-tariff barriers
Non-tariff measures are dened as policy
measures other than ordinary customs tariffs
SEPTEMBER 2015
POLICY BRIEF
Key points
• Trade leads to economic
development; trade policy can
ensure sustainability
• Many non-tariff measures
are much more than trade
policy instruments
-
they
are sustainable development
policies
• To successfully pursue the
sustainable development
goals, synergies and
trade-offs between means
of implementation must be
exploited
• Some costs of non-tariff
measures can be reduced
without compromising policy
objectives
• Regulatory convergence is
paramount
NON-TARIFF MEASURES AND
SUSTAINABLE DEVELOPMENT GOALS:
DIRECT AND INDIRECT LINKAGES
1 United Nations, 2015, Transforming our world: The 2030 agenda for sustainable development, available at
https://sustainabledevelopment.un.org/post2015/transformingourworld, accessed 14 September 2015.
Goals Linkages
1. End poverty in all its forms everywhere. Trade is an engine of economic growth and poverty reduction.
2. End hunger, achieve food security and improved nutrition, and
promote sustainable agriculture.
Trade is an engine of economic growth, income and agricultural
production. Trade affects access, availability and stability of food
security.
5. Achieve gender equality and empower all women and girls. Trade can provide opportunities for the economic empowerment
of women.
7. Ensure access to affordable, reliable, sustainable and modern
energy for all
Trade and global value chains are drivers of technological
innovation and the production of renewable energy sources.
8. Promote sustained, inclusive and sustainable economic growth, full
and productive employment and decent work for all.
Trade can be an engine of economic growth and employment.
9. Build resilient infrastructure, promote inclusive and sustainable
industrialization, and foster innovation.
Trade can be an engine of economic growth and industrialization.
10. Reduce inequality within and among countries. Trade-led growth has often contributed to reducing inequality
between countries.
17. Strengthen the means of implementation and revitalize the global
partnership for sustainable development.
Trade is a key means of implementation for sustainable
development.
Table 1. Potential linkages between trade and sustainable development goals
restricting market access is more than twice
that of tariffs. The impact is particularly striking
in sectors of high relevance for developing
countries.
3
The development potential of trade can be
signicantly impaired by trade costs stemming
from non-tariff measures. However, the elimination
of such measures is rarely an option, as the direct
linkages to sustainable development will show.
Reducing the cost of non-tariff
measures without compromising policy
objectives
There are two principal means of bringing
down trade costs related to non-tariff measures
without even touching policy levels: by increasing
transparency and reducing procedural obstacles.
Despite the widespread use of non-tariff
measures, there is a broad transparency gap.
This poses a major challenge to developing
countries with limited recourses as they assess
the implications of non-tariff measures. UNCTAD
and several of its partners are spearheading an
international initiative to collect comprehensive
data of mandatory regulations currently in force
in many countries. Detailed information for each
non-tariff measure includes information sources,
measures, and products and countries affected.
Coverage of over 90 per cent of world trade is
envisaged for 2015 (http://unctad.org/ntm). Data
collection of non-tariff measures is essential for
UNCTAD research and technical cooperation.
Every non-tariff measure comes with an
implementation procedure. As a rule, associated
procedures become more burdensome as the
underlying non-tariff measure becomes more
complex or discretionary. This incurs additional
costs and in many cases, long delays. The
World Trade Organization’s Agreement on Trade
Facilitation has the potential to drastically reduce
procedural obstacles and delays at the border.
Direct linkages: Many non-tariff
measures are much more than trade
policy instruments
Increasingly, non-tariff measures are sanitary,
phytosanitary measures and technical barriers to
trade designed to protect the environment and
human, animal and plant life. Mostly applied in a
non-discriminatory way to domestic and foreign
rms, they directly regulate issues related to
sustainable development goals: food, nutrition
and health, sustainable energy, sustainable
production and consumption, climate change
that can have an economic effect on international
trade.
2
They thus include a wide array of policies.
Some are traditional instruments of trade policy,
such as quotas or trade defence measures. These
measures are often termed non-tariff barriers
because of their unequivocally discriminatory and
protective nature.
However, the distinctly neutral denition of non-
tariff measures does not imply a direction of
impact or a judgement about the legitimacy of
a measure. It notably comprises sanitary and
phytosanitary measures and technical barriers
to trade, which may equally apply to domestic
producers and stem from non-trade objectives
related to health and environmental protection.
Many linkages between non-
tariff measures and sustainable
development
The diversity of types, mechanisms and objectives
of non-tariff measures are also reected in
the sheer number of linkages to dimensions
of sustainability. To understand how non-tariff
measures interact with sustainable development,
it is helpful to distinguish between indirect and
direct linkages.
Indirect linkage means that non-tariff measures
inuence trade. In turn, trade can foster economic
development and spill over to sustainable
development.
Direct linkages refer to policies that have an
immediate effect on sustainability. While many
policies primarily aim at protecting health or the
environment, they also have an impact on trade
and are therefore considered non-tariff measures.
While voluntary private standards are not within
the scope of mandatory non-tariff policies, they
can also inuence sustainable development
directly and indirectly. And although positive
effects on economic, social and environmental
aspects of development are possible, the
fragmentation of standards is cause for concern.
Indirect linkages:
Trade costs slow down trade
Based on the premise that trade is a driver of
economic growth and development, non-tariff
measures may be viewed as trade costs, or non-
tariff barriers. Nevertheless, even legitimate non-
tariff measures with non-trade objectives can
have signicantly restrictive and distorting effects
on international trade. UNCTAD research shows
that the contribution of non-tariff measures to
2 UNCTAD, 2010, Non-tariff Measures: Evidence from Selected Developing Countries and Future Research Agenda
(New York and Geneva, United Nations publication).
3 UNCTAD, 2013, Non-tariff Measures to Trade: Economic and Policy Issues (New York and Geneva, United Nations
publication).
Regulatory convergence is paramount
Striking a balance between excessive trade
restrictions and serving crucial non-trade
objectives is a key challenge.
World Trade Organization agreements on
sanitary, phytosanitary and technical barriers
to trade contain valuable principles calling for a
science-based approach, and adherence and
harmonization to international standards.
Since such barriers to trade vary across
countries, harmonization is a complex policy
priority. Studies on their harmonization nd
that divergence from international standards
leads to signicant trade losses. Furthermore,
even measures applied in a non-discriminatory
manner implicitly discriminate against
developing countries, especially least developed
countries, which dispose of limited resources
and infrastructure to deal with complex technical
regulations that differ across markets.
4
and the environment (table 2). Clearly, these
measures are necessary, if only to ensure the
protection of the planet.
It is also clear that most of these non-tariff
measures restrict trade and indirectly, economic
development. Direct and indirect linkages
between non-tariff measures and sustainable
development are not mutually exclusive: most
non-tariff measures with direct linkages also
create an indirect impact through trade. Take the
example of sanitary and phytosanitary regulations
to restrict pesticide residues on food products.
This non-tariff measure directly contributes to
human health and nutrition; however, it also
restricts trade, causing reduced income in
exporting countries and higher consumer prices
in importing countries.
There are indead tough trade-offs between
trade restrictions and direct sustainability to be
considered.
Goals Measures
Goal 2. End hunger, achieve food
security and improved nutrition, and
promote sustainable agriculture.
Non-tariff measures in the shape of sanitary and phytosanitary measures and technical barriers to trade are directly linked
to several pillars of food security. Sanitary and phytosanitary measures protect the health of human beings, animals and
plants; they also offer crop protection against pests and diseases.
Goal 3. Ensure healthy lives and
promote well-being for all.
Non-tariff measures or sanitary and phytosanitary measures are employed to protect human health from risks arising
from additives, contaminants, toxins or disease-causing organisms in food and drink. Codex Alimentarius provides
recommendations for science-based sanitary and phytosanitary regulations. Technical barriers to trade allow countries to
regulate food for consumer protection, e.g. labelling of fat or sugar contents. Non-tariff measures or technical barriers to
trade regulate the safety of imported pharmaceutical products and hazardous substances that may have adverse effects
on human health.
Goal 7. Ensure access to affordable,
reliable, sustainable and modern
energy for all.
Non-tariff measures apply to clean energy products in different ways. Some countries use subsidies, often “feed-in tariffs”,
to promote imports and the use of clean energy technologies. Some apply local content requirements for these benets,
which may slow down the proliferation of clean energy sources. Photovoltaic products have been subject to non-tariff
measures or antidumping duties.
Goal 12. Ensure sustainable
consumption and production patterns.
Non-tariff measures or technical barriers to trade enable countries to regulate production and imports of products that
cause environmental damage.
Goal 13. Take urgent action to combat
climate change and its impacts.
Non-tariff measures or technical barriers to trade are employed to regulate production and trade with respect to carbon
footprints, in accordance with the United Nations Framework Convention on Climate Change and the Kyoto Protocol. Trade
restrictions of ozone-depleting substances and products under the Montreal Protocol have reduced global warming.
Goal 14. Conserve and sustainably use
oceans, seas and marine resources for
sustainable development.
The primary objective of non-tariff measures or technical barriers to trade is to protect the environment. Measures include
restrictions on trade with hazardous substances or pollutants harming aquatic or terrestrial ecosystems. These restrictions
are often related to multilateral agreements such as the Basel Convention and the London Convention.
Goal 15. Protect, restore and
promote sustainable use of terrestrial
ecosystems, sustainably manage
forests, combat desertication, and
halt and reverse land degradation and
halt biodiversity loss.
Countries restrict trade of endangered ora and fauna through technical barriers to trade, often in alignment with the
Convention on International Trade in Endangered Species Wild Fauna and Flora. Non-tariff measures/sanitary and
phytosanitary and technical barriers to trade protect ecosystems and biodiversity from pests and invasive species.
Goal 17. Strengthen the means
of implementation and revitalize
global partnership for sustainable
development.
All of the above direct linkages between non-tariff measures and sustainable development show a strong need for global
partnership and coordination.
Table 2. Direct linkages between non-tariff measures and sustainable development goals
4 W Czubala, B Shepherd and JS Wilson, 2009, Help or hindrance? The impact of harmonised standards on African
Exports, Journal of African Economies, 18(5):711–744, November; UNCTAD, 2014, Trading with Conditions:
The Effect of Sanitary and Phytosanitary Measures on Lower Income Countries’ Agricultural Exports (New York
and Geneva, United Nations publication); UNCTAD, 2015, Deep Regional Integration and Non-tariff Measures:
A Methodology for Data Analysis (New York and Geneva, United Nations publication).
UNCTAD/PRESS/PB/2015/9 (No. 37)
implementation of sustainable development
goals.
Non-tariff measures are powerful policy tools that
can directly inuence sustainable development.
It is conceivable that a further proliferation of
such measures will occur as a reaction to the
direct linkages between them and sustainable
development goals.
Crucially, however, the direct impacts of non-
tariff measures on sustainability must not be
considered in isolation. Indirect linkages, which
may restrict trade and slow down economic
development, should not be ignored. These two
sides of the same coin create trade-offs as well
as synergies.
Coordination across areas of
expertise is indispensable
Linkages between non-tariff measures and
sustainable development goals put another
emphasis on the integrated nature and ambition
of the post-2015 development agenda. Non-tariff-
measure-related linkages between economic,
social and environmental development need to
be acknowledged and addressed. Coordination
is key.
National policymakers should look beyond their
own areas of expertise and ministerial mandates.
In fact, ministries of agriculture and health tend to
regulate more non-tariff measures than ministries
of trade. It is recommended that countries set
up national coordinating committees to ensure
regulatory coherence.
Equally, United Nations funds, programmes and
specialized agencies should not focus solely
on the implementation of a goal that relates to
their core competency. Strong inter-agency
cooperation is required to achieve sustainable
development. The United Nations must indeed
“Deliver as one”.
6
Nations need to work together in the multilateral
system and the United Nations to achieve
regulatory convergence. Most sustainable
development challenges cannot be achieved
alone. In the case of non-tariff measures, a
fragmentation of country-specic requirements
can severely handicap countries’ trade-driven
development prospects. The streamlining
and harmonization of non-tariff measures can
strongly mitigate trade-restrictive effects, while
directly and positively inuencing sustainability of
development.
While sanitary and phytosanitary regulations
are necessary (e.g. for food safety), commonly
agreed science-based international standards
should facilitate trade by harmonizing the
production process across countries. In practice,
the harmonization of standards should reduce
many xed and variable costs of trade.
Multilateral harmonization creates
trade; bilateral and regional
harmonization diverts it
The multilateral system is confronted with
a growing “spaghetti bowl” of bilateral and
regional agreements that also increasingly aim at
recognizing or harmonizing requirements relating
to sanitary, phytosanitary and technical barriers
to trade. The question is, how to harmonize
non-tariff measures to generate sustainable
development?
Studies show that adopting science-based
international standard guidelines is generally
good for developing countries. However, their
participation in international standard-setting
bodies needs to be strengthened. Regional
and bilateral harmonization also creates trade,
but with potential trade diversion effects.
Unilaterally adopting more stringent standards
from developed markets and imposing them as
domestic production requirements may increase
exports to the North, but this also carries risks.
For example, rising product prices can have a
negative impact on domestic consumers and
South–South trade.
5
Multilateral conventions, such as the Montreal
Protocol, play a signicant role in ensuring
sustainability while minimizing trade impacts.
Examples of effective multilateral collaboration
and coherence are provided in table 2.
International standard guidelines are not binding,
however. Some countries observe them, whereas
others are more or less strict about food safety.
Similarly, many international conventions are legally
binding plurilateral agreements for signatories,
while non-signatories tend to lag behind in their
contribution to global environmental sustainability.
Therefore, strengthening multilateral cooperation
in the harmonization of non-tariff measures is
paramount.
Synergies and trade-offs between
means of implementation must be
exploited
Given the multidimensionality of issues related
to non-tariff measures, they are indeed relevant
to the post-2015 development agenda and the
Contact
Christian Knebel
41 22 9175553
or Ralf Peters
41 22 9175680
Trade Analysis Branch
DITC, UNCTAD
Press Ofce
41 22 917 58 28
www.unctad.org
5 AC Disdier, L Fontagné and O Cadot, 2014, North–South standards harmonization and international trade, World
Bank Economic Review, 29(2):327–352.
6 http://www.un.org/en/ga/deliveringasone, accessed 14 September 2015.
