Policy Insights Invisible Barriers:The Costs of Non-Tariff Measures Trade-relatedregulations and non-tariffbarriers are on the rise and imposegreater costs on trade than tariffs. H I G H L I G H T S 1Trade-related policy interventionsare on the rise, with an increasedfocus on national security andgeopolitical concerns 2Tariffs are rising, but non-tariffmeasures (NTMs) continue tooutweigh themas the main cost toglobal exports 3Developing countries facehigh export costs from NTMs,compounded by limited capacityto meet complex and changingrequirements 4Transparency and regulatorycooperation on NTMs cansignificantly reduce costsof doingtrade Tariffs have risen, but compliancewith non-tariff measures remainsthe greater cost for mostcountries’ exports After years of decline, tariffs re-emerged. In 2025, global tariffs on exports rose significantly –by 10 per cent for developed, 16 per cent for developing and 18 per cent for least-developedcountries. Despite rising tariffs, non-tariff measures (NTMs) impose higher costs on exports for 88 per centof countries (figure 1). This burden falls most heavily on smaller developing countries and LDCs,for which NTM-related export costs are particularly high. NTMs are policy measures other than tariffs that can potentially have an economic effect oninternational trade in goods. On the one hand, they includenon-tariff barriers(NTBs) such asimport licensing requirements, quotas, import prohibitions and export bans. On the other hand,however, most NTMs aretechnical measuresthat primarily aim to protect public health and theenvironment. These essential public policy instruments can nonetheless have substantial tradeeffects by generating information, compliance and procedural costs. They shape trade, by determining who trades, what is traded and to which markets. Figure 1PDF - Fig1 -Beyond tariffs: Most countries still face higher exportPDF - Fig1 -Beyond tariffs: Most countries still face higher export Beyond tariffs: Most countries still face higher export costs from non-tariffmeasures.Comparison of trade-weighted costs countries faces on all their exports of goodscosts from non-tariff measures (Copie)costs from non-tariff measures (Copie)Comparison of trade-weighted costs countries face on all their exports of goods Comparison of trade-weighted costs countries face on all their exports of goods data.Note:Non-tariff measures (NTMs) include regulations, mandatory standards or product requirements. RegionsSource:UN Trade and Development (UNCTAD) calculations based on ITC (MacMap) and UNCTAD (TRAINS)Source:UNCTADcalculations based on ITC (MacMap) and UNCTAD (TRAINS) data. in grey indicate that no data is available. Latest available US tariff data for 2026, other countries 2024 data.Note:latest available US tariff data for 2026, other countries 2024 data. Trade agreements increasinglyinclude provisions to addressnon-tariff barriers and measures After announcing “reciprocal tariffs” on 2 April 2025, the United States has signed numerousReciprocal Trade Agreements (see table 1) and framework “deals”. Other economies, suchas the European Union, have also accelerated negotiations of trade agreements to open upalternative markets as access to the United States market becomes more costly. While tariffs dominated the headlines, NTMs have long been, and remain, a central pillar of recenttrade agreements. As tariffs declined over much of the past few decades, trade negotiationsincreasingly shifted toward regulatory and administrative measures that continue to determineeffective market access. NTMs sit at the heart of trade negotiations, reflecting their decisiverole in shaping who can trade and under what conditions. At the same time, governments areincreasingly using NTMs to advance objectives linked to economic nationalism and economicsecurity, as both developed and developing economies seek not only to protect domesticindustries but also to shape and secure control over key global value chains, underscoring abroader trend toward the strategic use of interdependence. Recent United States trade deals focus heavily on easing regulatory and administrativerequirements for its exporters. Most of these include sector-specific provisions on the recognitionof United States standards and conformity assessment for vehicles, pharmaceuticals and agri-food products in bilateral trade. In some countries, the negotiations covered the removal oflocal content requirements as well as the elimination or simplification of import licenses. WithIndonesia and Malaysia, agreements also covered strategically important critical minerals, withcountries agreeing to refrain from imposing any type of export restrictions. Recent European Union agreements with India and Mercosur emphasize mutual recognitionand alignment with broader international standards, rather than the recognition of standards ofone of the parties. Regulatory activity on NTMs is rising,with an increased focus on nationalsecurity