2024.11.18

Partner Jian GUAN Interprets Non-Tariff Trade Barriers, Advising Export Enterprises on Coping Strategies

Recently, Jian GUAN, a lawyer from Grandwin Law Firm, was invited to participate in an interview, providing a professional interpretation of the definition, main forms, and corporate countermeasures regarding non-tariff trade barriers. He offered practical guidance for foreign trade enterprises to break through trade barriers and expand into international markets.


During the interview, addressing the question of the "core connotation of non-tariff trade barriers," Partner Jian GUAN provided a clear definition. He stated that non-tariff trade barriers refer to measures restricting the free import and export of products through means other than tariffs. The relevant rules are primarily governed by the WTO's Agreement on Technical Barriers to Trade (TBT) and the Agreement on the Application of Sanitary and Phytosanitary Measures (SPS). Traditional non-tariff trade barriers mainly manifest as technical standards, product certifications, and inspection and quarantine requirements, with typical examples including the EU's REACH Regulation and CE certification.


As the global trade landscape evolves, the forms of non-tariff trade barriers are also continuously upgrading. Non-traditional types such as green barriers and social barriers are gradually becoming major challenges for foreign trade enterprises expanding overseas.  Partner Jian GUAN provided a detailed analysis of this: Green barriers set up trade thresholds in the name of environmental protection. A typical representative is the EU's Carbon Border Adjustment Mechanism (CBAM), which requires importers to purchase carbon emission certificates for high-carbon products, and will directly impact the export trade of sectors like steel, cement, fertilizers, and electricity in the future. Carbon labeling and carbon footprint certifications implemented by countries like South Korea, the US, and Thailand require products to be labeled with carbon emission data throughout their entire lifecycle from production to use. Furthermore, the EU's Battery Regulation and Ecodesign for Sustainable Products Regulation extend environmental requirements to the product design stage, covering the entire process of production, use, and waste disposal.


Social barriers focus on labor standards, supply chain responsibility, and consumer welfare. Partner Jian GUAN pointed out that countries like the US and Europe have introduced regulations such as the Uyghur Forced Labor Prevention Act (UFLPA) and the Regulation prohibiting products made with forced labour on the Union market, citing human rights and labor issues. These not only ban the entry of products made with forced labor but also extend scrutiny to the entire supply chain. The EU's European Accessibility Act also incorporates consumer rights protection into trade considerations, explicitly stating that from 2025, products like smartphones that do not meet the usability needs of people with disabilities will be banned from the EU market.


Faced with a wide variety of highly covert non-tariff trade barriers, how can export enterprises find a way forward?  Partner Jian GUAN offered two core suggestions. On one hand, enterprises need to proactively ensure compliance and plan ahead. Compared to tariff increases, non-tariff trade barriers are characterized by concealment and lag, making them difficult for enterprises to perceive immediately. Therefore, companies should regularly track the updates and implementation status of relevant regulations in various countries, accurately analyze the impact of regulations on their own products, and promptly establish compliance management systems for supply chain traceability and labor rights, seizing the initiative in responding.


On the other hand, enterprises should actively safeguard their rights and leverage multiple forces. Partner Jian GUAN emphasized that non-tariff trade barriers themselves are not necessarily violations of WTO rules. However, some measures exhibit clear discrimination during implementation. For instance, in the carbon footprint certification process, Chinese companies often face more obstacles than local industries in the importing countries. In such situations, besides seeking local legal remedies, enterprises can also report the situation to Chinese commercial authorities and rely on the government to eliminate discriminatory practices through bilateral and multilateral channels, protecting their legitimate rights and interests.


This public legal education session provided detailed and highly practical content, offering clear action guidance for foreign trade enterprises dealing with non-tariff trade barriers. In the future,Grandwin Law Firm will continue to fulfill its responsibility in public legal education, assisting enterprises in high-quality overseas expansion through more professional sharing, and contributing legal expertise to optimizing the business environment.