Trade Barriers Essay

TRADE BARRIERS- how effective?
All countries including India restrict international trade by employing different types of trade barriers. After 1991's Liberalization, Privatisation and Globalisation policy India has opened up its economy to great a extend however, it can be seen that its tariffs continue to be high when compared to other developed countries and this acts as a trade barrier. The basic purpose of imposing trade barriers is to restrict the movement of goods between two countries. Trade barriers are imposed on imports as well as on exports.
Trade barriers can be of two types - Tariff and Non-tariff barriers. Tariffs are imposed more on importing counties than on exporting counties because every country wants to sell more to

US has repeatedly asked India to reduce trade barriers. In 2013, US asked India to remove trade barriers to boost two way economic ties. Again in 2013 US expressed concerns for its lower exports and seeked greater access to Indian markets and asked India to remove trade barriers for agricultural and other goods. Trade barriers are often used by politically powerful domestic producers as a means to keep foreign competition away, charge higher prices or to gain a greater market share. Thus, though the trade barriers are effective to protect the domestic industries from foreign competition and also to make a country self-sufficient reducing the trade barriers would ensure greater exports as well as imports. These trade barriers should also be imposed in such a way that the imports are discouraged and exports are encouraged. India imposes these barriers so as to restrict the imports as India imports a lot from countries like America, China etc. So these barriers are quite effective to control the imports and on the other hand should be liberalized to increase the exports of India. Having very little or no barriers would not necessarily mean greater exports however on the other hand would might lead to a greater imports and thus a balance of trade