The United States gets a “taste of their own medicine” with India’s tariff on American motorcycles. What do you think when the tables are turned?
The Office of U.S. Trade Representative’s National Trade Estimate Report on Foreign Trade Barriers published annually classifies barriers into ten categories:
- Import policies that include tariffs and other import charges as well as customs barriers
- Standards, testing, labeling and certification, which includes refusal to accept U.S. manufacturer’s self-certification that they conform to a country’s product standards
- Government procurement, including “buy domestic” and closed bidding processes
- Export subsidies including export financing on preferential terms and agricultural export subsidies that displace U.S. exports in third world markets
- Service barriers such as limits on the range of financial services that can be offered by outside financial institutions
- Lack of intellectual property protection– endangering patents, copyrights or trademarks
- Investment barriers, including limits on global equity participation, access to outside government-funded research and development programs, and restrictions on transferring earnings and capital
- Anti-competitive practices with trade effects tolerated by other governments, including anti-competitive activities of both state-owned and private firms
- Trade restrictions affecting e-commerce including discriminatory taxation
- Other barriers, such as those that might encompass more than one category–bribery and corruption– or that affect a single sector
Each year the report outlines the specific barriers in each of the largest export markets in the U.S., breaking them out according to 57 countries and several regions including the European Union and the Southern Africa Customs Union. It is essential reading for global marketers looking to expand into one of these nations or regions.
This is an excerpt from Dr. Czinkota’s book Global Business: Positioning Ventures Ahead, co-authored by Dr. Ilkka Ronkainen.
Michael R Czinkota and Ilkka A Ronkainen, Global Business: Positioning Ventures Ahead (New York: Routledge, 2011), pg. 17-18.