The UN Conference on Trade and Development (UNCTAD) has released a research paper that examines the linkages between non-tariff measures (NTMs) and the SDGs. The paper aims to encourage policymakers to consider the implications of NTMs for their economies and for others.

NTMs are “measures other than ordinary customs tariffs that can have economic impact on international trade.” These measures can alter the composition, cost, direction, and volume of international trade. Over 140 countries put NTMs in place during the COVID-19 pandemic, mostly with the aim of safeguarding public health over economic concerns. NTMs can directly and indirectly impact sustainable development through their impact on trade, and can have both positive and negative impacts on sustainable development.

The paper titled, ‘COVID-19 Non-Tariff Measures: The Good and the Bad, through a Sustainable Development Lens,’ examines the NTMs put in place during the pandemic to better understand the impacts of such measures on the SDGs. The authors analyze the types of NTMs adopted by countries, their objectives, and their implications for the SDGs. Of all the NTMs adopted in response to the pandemic, almost 60% were put in place to ensure adequate and affordable domestic supplies of medical goods and other essential items to combat the virus. Other objectives of imposing NTMs included: eliminating entry of potential disease carriers into national borders, such as by prohibiting imports and exports of wildlife, live animals, and plant-based foods; ensuring product quality and safety; and promoting economic objectives, such as protecting domestic industries, managing domestic demand and supply, and providing COVID-19 financial relief for businesses.

Overall, the NTMs impacted the following SDGs: SDG 1 (no poverty), SDG 2 (zero hunger), SDG 3 (good health and well-being), SDG 8 (decent work and economic growth), SDG 10 (reduced inequalities), SDG 15 (life on land), and SDG 17 (partnerships for the Goals). For example, NTMs that focused on certification requirements for medicines had a positive impact on a country’s health and well-being by ensuring quality and safe medicines (SDG 3), but also restricted timely access to medicines, resulting in a negative affect on health and well-being. For other countries, this NTM raised compliance and business costs for exporters, negatively affecting their export earnings and economic growth (SDG 8).

Another example is NTMs that prohibit import of wild animals for public health protection. This NTM had a positive impact for the country imposing the measure by preventing risks to health and well-being (SDG 3) as well as a positive impact for other countries by discouraging hunting, poaching, and trafficking of wild animals, contributing to biodiversity conservation (SDG 15). The paper provides similar analysis of other linkages between NTMs and the SDGs.

To minimize potential adverse impacts on trade and sustainability, the paper recommends policymakers first consider whether an NTM is needed or whether there are alternatives, and then design high-quality NTMs where they are needed and implement them strategically with full transparency to inform other countries and the private sector of the measure. The paper further recommends, inter alia:

• greater regulatory cooperation to expedite trade in essential goods and meet high demand;
• lifting emergency measures, especially those that had a negative impact on the SDGs, after the pandemic so that they do not become market distorting;
• retaining temporary measures if they brought more benefits for the SDGs over the long term, such as trade bans on wildlife that have more positive than negative impacts – or tariff reductions for medical supplies;
• revitalizing the private sector; and
• building a resilient economy.

The paper also provides detailed recommendations for applying NTMs to equip the international trading system over the long term, including to build a more transparent system and ensure compliance with rules. [Publication: COVID-19 Non-Tariff Measures: The Good and the Bad, through a Sustainable Development Lens]