Import Restrictions by G20 Economies Up 75 per Cent in Recent Years
The global trade landscape in 2025 is increasingly characterized by a resurgence of protectionist policies, marking a significant shift from the liberalization trends of previous decades.
Chennai: Amidst heightened protectionism, import restrictions imposed by G20 economies have gone up by 75 per cent in recent years.
The global trade landscape in 2025 is increasingly characterized by a resurgence of protectionist policies, marking a significant shift from the liberalization trends of previous decades. This protectionism manifests through heightened tariffs, non-tariff barriers (NTBs), and strategic trade measures, impacting global commerce and economic stability.
The number of import restrictions among G20 economies has soared to 4,650 — up 75 per cent since 2016 and nearly 10 times the restrictions in 2008, finds FIEO. In early 2025, the US escalated its trade measures by increasing the average effective tariff rate from 2.5 per cent to an estimated 27 per cent, the highest in over a century.
The European Union is focussing on non-tariff measures based on environment and sustainability to put pressure on MSMEs. While some NTMs serve legitimate regulatory objectives, many are turning into Non-Tariff Barriers (NTBs) when used to discriminate or create disguised protectionism.
EU Deforestation Regulation, Carbon Border Adjustment Mechanism and Eco Design Sustainable Product Regulation will come into force from January 1,2026. The ESPR framework is implemented through Digital Product Passport providing complete traceability of the product throughout its lifecycle.
The DPP aims to digitally record, store, and share information about a product’s entire life cycle—from raw materials to manufacturing, usage, recycling, and disposal.
This passport includes material composition and sources, Carbon footprint and energy use, repairability and recyclability, compliance with environmental and social standards, certifications and regulatory compliance and end-of-life instructions.
It will be mandatory for a wide range of products, starting with sectors like electronics, batteries, textiles, and construction materials from Jan 1,2026 with wider rollouts expected by 2026–2030.
