May 15, 2026

Paperwork has now overtaken customs tariffs as the main barrier to global trade

According to the Global Trade Update from the UN Trade and Development (UNCTAD), many countries' global trade policy is becoming more interventionist. Tariffs are rising again, but they are not the main obstacle for most countries' exports.

Non-tariff measures (NTMs) such as regulations, mandatory standards or product requirements, now drive most trade costs. They shape who trades, what is traded and to which markets.

Tariffs increased sharply in 2025. They rose on average by 10% for developed countries, 16% for developing countries and 18% for least developed countries.

Even so, tariffs are not the main cost for most countries. Non-tariff measures impose higher export costs than tariffs for 88% of countries. They include technical regulations, health and safety requirements, and administrative procedures. They often involve compliance, information and procedural costs.

The challenge is not only the measures themselves. It's also how difficult they are to find and understand. Lack of transparency acts as a hidden trade barrier. Firms often struggle to know which rules apply to their products.

UNCTAD notes that NTMs serve important public policy goals, including health, safety and environmental protection. They can't be simply negotiated away. The priority should now be to reduce unnecessary costs while keeping these protections in place.

Link: Invisible barriers are reshaping global trade