Barriers to Trade
There are four main barriers to trade:
- Tariffs
- Quotas
- Embargoes
- Subsidies
As a member of the EU, Ireland is not allowed to impose any restrictions or barriers on trade with other EU member states.
Tariffs
A tariff is a tax charged on imports to make them more expensive and encourage people to shop locally.
Example: the EU imposes tariffs on steel imports from China.
Quotas
A quota is a limit on the quantity of goods produced.
Example: Irish farmers were restricted by milk quotas.
Embargoes
An embargo is a ban on the trade of certain goods.
Example: a ban on exporting beef to the US and China.
Subsidies
A subsidy is a form of price support given by the government to businesses.
Example: the Irish government gives subsidies to Coras Iompair Eireann.