Technical Barriers to Trade (TBT)   

Technical Barriers to Trade (TBT) are mandatory technical regulations and voluntary standards defining specific characteristics a product must possess so that it is accepted in each market. The characteristics could include its size, shape, design, labelling, marking, packaging, functionality or performance. Products undergo a conformity assessment and can include product inspection, product testing and other product certification activities.   

Standards are an important tool in international marketing of products and services because they convey information that makes it easier for the buyer to understand and trust in their quality and specifications. Buyers may be hesitant to purchase products that are based on standards which are different from the buyer’s own country. Complying with these standards could be time consuming and costly and most exporters regard TBTs to be a major barrier to free trade. Like everything else, standards change, and exporters should stay on top of these changes. Kenya Bureau of Standards provide the latest information on standards (Otsieno, 2007). 

Sanitary and Phytosanitary (SPS) measures  

Sanitary and phytosanitary (SPS) measures are the rules, laws, procedures and standards imposed by governments to protect humans, plants and animals from diseases, toxins, pests and other contaminants.   

Countries require that imported goods conform to mandatory quality, health, safety and environmental standards. These standards exist to protect the health and safety of populations as well as the environment. Complying with international standards makes it easier to access foreign markets.      

However, these regulations differ enormously in various parts of the world and change often. The problem of constant change applies particularly to food products (e.g. Genetically Engineered Organisms – and the use of pesticides and fertilizers), prescription drugs, chemicals, and common consumer products (aerosols, powder and liquid household products, toys for babies and young children, etc.). When standards differ so widely from one country to the next, they become a trade barrier. This is because adjusting production processes to suit various countries’ standards can be costly. Regulations may also require product testing in the importing country, which may require stricter tests or higher fees than the domestic competitors. This can be quite challenging for small businesses. Like everything else, standards change, and exporters should stay on top of these changes. Kenya Bureau of Standards provide the latest information on standards. (Otsieno, 2007).   

Non-Tariff Measures and Non-Tariff Barriers  

A non-tariff barrier is used to restrict trade using trade barriers that do not involve tariffs. Some examples of nontariff barriers are licenses, quotas, embargoes, sanctions, and voluntary export restrictions. Some countries frequently use nontariff barriers to restrict the amount of trade they conduct with other countries as part of their political or economic strategy (Nontariff Barrier, March 2021).  

Licenses- Some countries may use licensing requirements to limit trade where only businesses that have the trading licence are allowed to import products into the country.   

Quotas- Quotas are limits allowable to be imported into a country at a certain period. Countries may specify the limit allowable into their market and this acts as a barrier to free trade. In most cases, there are no restrictions until the country reaches its quota. The quotas are mostly used in international trade licensing agreements.     

Embargoes- Embargoes are import bans on specific goods and services from other countries often undertaken by governments as a measure to support their economic and sometimes political goals.     

Sanctions – Sanctions are limits to trade activities imposed by a country on other countries, firms or individuals. They may include commercial and financial penalties, increased administrative actions such as additional customs and trade procedures. The main aim is to slow or limit the ability to trade and may be motivated by economic, military, political and social factors.    

Voluntary export restraints- in some cases, countries set limits on the number of goods and services they can export to specified countries typically based on availability and political alliances.