Other Trade Policy Tools

by Steven Suranovic ©1997-2004

Trade 10-7





Government Procurement Policies

A Government Procurement Policy requires that a specified percentage of purchases by the federal or state governments be made from domestic firms rather than foreign firms.

Health and Safety Standards

The U.S. generally has more regulations than other countries governing the use of some goods, such as pharmaceuticals. These regulations can have an effect upon trade patterns even though the policies are not designed based on their effects on trade.

Red-Tape Barriers

Red-tape barriers refers to costly administrative procedures required for the importation of foreign goods. Red-tape barriers can take many forms. France once required that videocassete recorders enter the country through one small port facility in the south of France. Because the port capacity was limited, it effectively restricted the number of VCRs that could enter the country. A red-tape barrier may arise if multiple licences must be obtained from a variety of government sources before importation of a product is allowed.

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International Trade Theory and Policy Lecture Notes: ©1997-2004 Steven M. Suranovic
Last Updated on 8/16/03