Glossary

What is TBT Agreement

The Technical Barriers to Trade (TBT) Agreement aims to prevent unnecessary technical obstacles in international trade. Moreover, it also establishes rules for the adoption and application of technical regulations, product standards, and the procedures used to find out whether a specific product meets the predefined regulations or standards.

Why does the TBT agreement exist:

  • Prevent protectionism: It prevents countries from masking their use of technical standards as a means of defending their domestic industry.
  • Facilitate trade: It is easier for goods to be sold internationally when standards and laws are standardised.
  • Preserve legitimate interests: It acknowledges that countries have the right to enact laws pertaining to environmental, public health, and safety, but it ensures that these laws don’t become trade restrictions.

See Also: World Trade Organization (WTO), Sanitary and Phytosanitary (SPS) Measures, Non-Tariff Barriers (NTB), Rules of Origin (ROO), Inward Processing Relief (IPR)