UNCTAD warned that as the use of NTMs expands further, the gap between developed and developing economies risks widening unless poorer countries receive stronger technical support and regulatory capacity-building assistance.
Transparency failures raise hidden trade costs
A major concern highlighted in the report is the lack of transparency surrounding non-tariff regulations.
UNCTAD said many countries fail to fully notify trade-related measures to the WTO, leaving exporters uncertain about applicable rules, standards and compliance procedures.
The report cited studies estimating that improving transparency could reduce trade costs associated with non-tariff barriers by around 19 per cent. Failure to notify trade measures can generate costs comparable to imposing a 28 per cent tariff.
For smaller firms with limited technical and legal resources, these hidden compliance costs can effectively block access to international markets.
“Improving transparency is often described as a low-hanging fruit,” the report said, pointing to existing platforms such as the TRAINS database and the Global Trade Helpdesk that aim to improve access to regulatory information.
Trade deals increasingly focused on regulatory alignment
The report highlighted that recent trade agreements are increasingly centred on regulatory cooperation and standards recognition rather than conventional tariff cuts.
Following the announcement of “reciprocal tariffs” by the United States on April 2, 2025, Washington signed several bilateral trade arrangements with countries including Malaysia, Indonesia, Bangladesh, Cambodia, Ecuador, Argentina and Taiwan.
Many of these agreements included provisions involving recognition of US standards and conformity assessments for automobiles, pharmaceuticals, medical devices and agricultural products.
For instance, agreements with Malaysia and Indonesia included commitments involving critical minerals and provisions against export restrictions. The Indonesia arrangement also involved removal of local content requirements and import licensing barriers for US goods.
