Trade barriers are considered to be an important aspect in today’s world and it has gained importance in the subject of international trade and globalization. In international trade certain phenomena are quite common like free trade, fair trade, protectionism and etc. Free trade is considered to be a trade policy which allows international traders to acts and transact in the market without the interference of the government. However, the policy of free trade permits the trading partners to attain mutual gains from the trade but the goods and services are produced accordingly and with accordance to the law.
Similarly, fair trade is an organized form of trade and it is a market-based approach which is used in empowering the producers of developing countries. A fair price is advocated in the contract that complies with the social and environmental standards. Besides these policies there are certain barriers in the trade these barriers are termed as quotas, taxes and etc. Trade barriers are implemented by many countries because they don’t want other countries to benefit from that situation. Trade barriers actually give a strategic advantage to the country which has imposed it and in the long run that country can dictate their own terms and conditions to other country (Feenstra). EU has imposed quotas and duties in exports that a certain amount of goods can be exported to EU and non-European countries cannot exceed that limit. These tariffs are beneficial for that country but it might affect the relationship between the countries. However, in order to seek monetary and strategic benefits organizations stresses a lot on imposing trade barriers in the forms of duties, tariffs and quotas.
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