Legislative instruments, such as free trade agreements, certifications, and other non-tariff measures, have a significant impact on the development of global trade. Gaining a thorough understanding of these tools enables businesses and governments to make informed decisions and optimize their strategies in the global marketplace.

  • Free trade agreements (FTAs) are intended to lower or eradicate trade barriers between participating nations. By allowing businesses to access new markets and consumers, they can increase trade, economic growth, and job creation. However, due to increased competition, FTAs may also result in the relocation of some industries or the loss of jobs in certain sectors.


Certifications ensure that products meet particular quality, safety, or environmental standards. These certifications can assist businesses in gaining a competitive advantage on the market and access to certain consumers who prioritize these standards. In addition, certifications can facilitate trade by providing exporters and importers with a level of trust and assurance.

  • Non-tariff measures (NTMs) encompass a wide variety of policies, such as quotas, licenses, and technical regulations, that can affect trade without directly imposing tariffs. While NTMs can be implemented to protect public health, safety, and the environment, if they are applied in a discriminatory or restrictive manner, they can also function as trade barriers.


Understanding the effects of these legislative instruments is essential for businesses and policymakers navigating the complex landscape of international trade. By assessing their effects, stakeholders can develop strategies to capitalize on opportunities and mitigate potential risks.