A newly formed country in Oceania has no high tariffs but other countries find it difficult to trade with it because of its extensive labeling, product testing, and certification requirements. These restrictions can best be classified as

Bureaucratic Red Tape.

Explanation:

The term red tape is used to refer to the extensive document filling works or rules and regulations that need to be met before accessing the benefits.

The term 'red tape' is used in the reference when in the courts of King Charles V important papers were tied using red ribbon, rope, or cloth. the word 'tape' is derived from Old English which refers to a narrow strip of ribbon, cloth, or rope that is used to tie, etc.

Bureaucratic Red Tape is the phrase used to refer to the levels of procedures that one has to go through.

In the given case, the restrictions that Oceania has are referred to as bureaucratic red tape. It is because other countries have to go through a lot of extensive labeling, product testing, and certification procedure before trading with the country.

So, the correct answer is bureaucratic red tape.