The United Nations Conference on Trade and Development (UNCTAD) is sounding the alarm over the growing use of non-tariff measures (NTMs) in global trade policies, warning that smaller developing economies face higher export costs that could hinder economic growth.

In its monthly report on global trade, UNCTAD said major economies have been moving away from trade liberalization toward a “more distortive use of trade policy” to pursue specific economic objectives, including national security concerns.

The Geneva-based trade body said the use of NTMs—which include technical regulations, health and safety requirements, and administrative procedures—has increased to unprecedented levels over the past decade, particularly last year, alongside the implementation of new tariffs.

The United States (US), the world’s largest economy, started imposing tariffs on products made by its trading partners last year to encourage consumers to choose locally made alternatives and reduce the trade deficit.

Despite the additional costs imposed by tariffs, UNCTAD said NTMs are increasing export costs for around 88 percent of countries.

“This burden falls most heavily on smaller developing countries and least-developed countries (LDCs), for which NTM-related export costs are particularly high,” the report said.

Since NTMs often involve compliance and procedural costs, exports from smaller economies become more expensive because meeting these standards is resource-intensive and burdensome.

For instance, UNCTAD said economies without the necessary certification bodies may need to route products through third countries to verify compliance with requirements, making it harder for them to compete with larger economies.

“As the use of NTMs continues to expand, the gap between developed and developing regions risks widening further. Development strategies must thus focus on reducing the costs and challenges of compliance with NTMs,” it said.

UNCTAD noted that the cost of complying with these trade policies is aggravated by the general lack of transparency, including the sheer volume of regulations and the difficulty of identifying which rules apply to specific products.

By improving transparency associated with NTMs, export costs could decline by about 19 percent.

UNCTAD added that costs could be reduced further by between 15 percent and 30 percent if economies align their domestic regulatory rules with one another or with international standards.

“Without these steps, NTMs risk reducing the benefits of tariff liberalization and limiting the ability of developing countries to benefit from global trade,” UNCTAD said.

“By improving access to information and promoting greater alignment or stronger mutual recognition across regulatory systems, these measures can significantly reduce the compliance costs associated with NTMs,” it added.