Tariff reductions lead to rise in non-tariff trade regulations worldwide.
Since the formation of the World Trade Organization in 1995, countries have been reducing their customs tariffs. This was a result of the Uruguay Round of trade negotiations, leading to lower average tariffs on industrial goods worldwide. As tariffs decreased, countries turned to non-tariff methods to protect their markets from imports. This shift towards non-tariff regulations has become more important as a way to control trade volumes.