Nontariff measures (NTMs) are regulatory instruments and policies that apply to traded products. Insofar as NTMs address a market failure and improve the business environment they are fully justified on welfare grounds. A badly designed or implemented NTM, however, could unnecessarily restrict trade and work against the realization of trade facilitation objectives. A common feature of efforts to reduce the trade-impeding effects of NTMs and improve the business environment is to increase the transparency of prevailing NTMs and to ensure that such measures are not more trade restrictive than necessary to achieve the legitimate policy objective of each specific regulation, such as protecting the environment, human health, animal well-being, etc.