Non-tariff measures (NTMs) have become a heavier burden on global exporters than tariffs in most economies, with compliance costs exceeding tariff-related expenses in 88 percent of countries, according to the United Nations Conference on Trade and Development (UNCTAD).
In its May Global Trade Update, UNCTAD said recent tariff adjustments in 2025 have unevenly affected economies, with developing countries bearing a larger share of overall trade costs due to complex regulatory requirements tied to NTMs.
The report said exporters in these markets are disproportionately affected by certification rules, product standards, and administrative procedures that require significant time and financial resources to comply with.
“Their exports are often more affected because compliance with complex regulations, certification requirements, and associated administrative procedures is relatively more burdensome and resource-intensive for their firms, particularly smaller exporters with limited technical and financial capacity,” it said.
UNCTAD noted that in some cases, firms are forced to ship products abroad solely for testing or certification when such facilities are not available domestically, further increasing export costs.
The report stressed that reducing trade friction does not require dismantling regulatory protections but improving how these systems are implemented, particularly through transparency and regulatory cooperation among countries.
“The lack of transparency in non-tariff measures is a significant obstacle to global trade. For businesses, particularly smaller enterprises, the sheer volume of regulations and the difficulty of identifying which regulations apply to specific products can be overwhelming. Regulations on standards, labeling, approvals, and safety often differ across markets,” it said.
UNCTAD said better access to clear and centralized regulatory information could significantly ease compliance pressures on exporters.
It added that studies show improved transparency alone can cut trade costs linked to non-tariff barriers by about 19 percent.
The report also highlighted regulatory divergence as a key challenge, citing cases such as electrical products that require multiple rounds of testing and certification despite having similar safety standards across markets.
Small exporters in developing economies were identified as particularly vulnerable, especially in meeting varying requirements on packaging, labeling, pesticide residues, and certification.
UNCTAD said regulatory convergence, or the alignment of national standards with international frameworks, could reduce trade costs linked to NTMs by 15 to 30 percent without compromising safety or quality standards.
