Trade Barriers

Abstract

A basic definition of trade barriers could be ‘all factors that influence the amount of goods and services shipped across international borders’ (Feenstra and Taylor, 2017a). This definition is quite neutral, and it needs to be understood that the word ‘barrier’ has a negative connotation, which means that a trade barrier would be any instrument that limits or restrict trade between countries, as opposed to free trade. It is generally accepted that free trade is good for productivity and economic growth, but it is also true that most countries apply some sort of trade restriction, for different reasons.