EuroWire, GENEVA: Non-tariff measures such as product standards, health rules and certification requirements now impose higher export costs than tariffs for 88% of countries, according to a May 2026 global trade update released this week by UN Trade and Development (UNCTAD). The report said the shift is reshaping market access as trade increasingly turns on compliance with regulatory requirements rather than customs duties alone. It added that the burden falls heaviest on smaller developing economies and least-developed countries, where firms often lack the capacity to meet complex rules across multiple markets.
The report said tariffs re-emerged in 2025 after years of decline, with global tariffs on exports rising 10% for developed economies, 16% for developing economies and 18% for least-developed countries. Even so, non-tariff measures remained the larger cost for most exporters. UNCTAD said these measures include both outright restrictions, such as licensing requirements and quotas, and technical rules aimed at protecting health, safety and the environment. Those rules can still raise trade costs by adding information, testing, certification and administrative burdens before goods can enter a market.
UN Trade and Development said trade policy intervention has become more active, with a stronger focus on national security and geopolitical concerns. Its report said technical barriers to trade, sanitary and phytosanitary measures, tariffs and other non-tariff barriers all increased, and that new non-tariff barriers were still almost twice as frequent as tariff measures in 2025. While tariffs drew attention, the report said regulatory and administrative requirements have become a central part of trade agreements because they now determine effective market access across many sectors.
Developing economies carry the heaviest load
The report said the impact is uneven. Many developing economies face rising tariffs at the same time they absorb higher compliance costs tied to standards and certification. It said average tariff rates on exports from Latin America more than doubled, while exporters across Africa, East Asia and South Asia also faced heavier pressure than developed economies. For smaller firms, the cost problem can deepen when accredited laboratories or certification bodies are unavailable domestically, forcing products to be routed through third countries to verify compliance before shipment.
UNCTAD said least-developed countries lose about 10% of their exports to G20 markets because they are less able to comply with non-tariff measures than other developing economies. It said that makes regulatory costs a development issue as well as a trade issue. Rather than eliminating measures that often serve legitimate public policy goals, the report points to two practical ways to cut the burden: better transparency and more regulatory cooperation, including greater alignment or stronger mutual recognition across different regulatory systems.
UNCTAD says transparency gaps raise trade costs
The report said lack of transparency is itself a major obstacle. Most non-tariff measures are subject to notification requirements at the World Trade Organization, yet those obligations are not always met, leaving businesses to sort through fragmented rules on labeling, approvals, safety and standards. UNCTAD cited research showing that better transparency could reduce trade costs tied to non-tariff barriers by about 19%, while measures that are not notified can carry costs comparable to a 28% tariff. For smaller companies, those hidden costs can block market entry altogether.
UNCTAD said tools already exist to narrow that information gap, including its TRAINS database and the Global Trade Helpdesk, which compile product-level trade requirements in a more accessible form. The World Trade Organization’s transparency framework remains central because advance notice of draft technical and health measures can give exporters time to adjust before rules take effect. As regulatory requirements play a larger role in global commerce, the report said clearer information and closer cooperation can lower trade costs without rewriting the rules.