Trade restrictions are government-imposed limitations on international trade

Trade restrictions are government-imposed limitations on international trade. They are used to protect domestic industries, control imports/exports, or achieve policy objectives. The main types of trade restrictions include:

1. Tariffs – Taxes on imported goods, making them more expensive.
2. Quotas – Limits on the quantity of goods that can be imported/exported.
3. Embargoes – Complete bans on trade with specific countries.
4. Subsidies – Government support to domestic industries to make them more competitive.
5. Voluntary Export Restraints (VERs) – Self-imposed limits by exporting countries to avoid harsher restrictions.
6. Import Licensing – Requiring government permits to import goods.
7. Currency Controls – Restrictions on foreign exchange transactions to limit imports.
8. Sanitary and Phytosanitary Measures (SPS) – Health and safety regulations affecting trade.
9. Technical Barriers to Trade (TBT) – Standards and regulations that restrict imports.
10. Local Content Requirements – Mandates that a certain percentage of a product be sourced domestically.