Tariff Loopholes Fuel Protectionist Policies Worldwide, Stifling Global Trade
This study looked at how rules affecting trade are changing. After cutting tariffs for a while, countries started using other rules (non-tariff measures) more. The researchers studied data from countries worldwide between 1996 and 2019. They found that just reducing tariffs doesn't mean more non-tariff rules. The real connection is when a country keeps its tariffs close to the highest limit allowed. When this limit isn't much higher than the actual tariff, countries tend to use more non-tariff measures. So, having tight control over tariffs gives them less freedom in using other trade rules.