In the short term, the effect of a tariff is that it reduces the amount of goods imported thereby improving the international trading position of the country imposing it. Tariffs also protect domestic producers from foreign competition. In the long run, tariffs usually lead to an overall decrease in exports as well as imports. However, tariffs are an important source of government income, particularly in the developing world. A non-tariff barrier is an impediment to trade that does not involve a tax on imported goods.
Some countries are very creative in finding ways of blocking imports.
Japan, for example, has a system of exclusive supplier contracts which make it impossible for a non-Japanese company to distribute its products. Table of contents Also, if nations got into serious balance of payments trouble certain exceptions to the GATT rules were allowed. Countries with this kind of problem could restrict imports for a while. This could also be done to prevent serious injury to domestic producers, or for reasons of public morality, health or national security. Canada and other major agricultural exporters protested long and hard over this issue, but the U.S. dug in its heels and prevailed.