Effective Rate Of Assistance

Effective rate of assistance in Global Commerce Policy

In this regard, effective rate of assistance is: ERA. Sometimes also called effective rate of protection. The entries on trade policy are here. It is a framework for making clear the difference between the hypothetical situation of no domestic assistance to industry and the situation actually obtaining. The ERA concept is useful because it can measure government interventions such as subsidies or purchasing preferences that may influence trade flows without actually restricting flows at the border, including tariffs and non-tariff measures. The entries on trade policy are here. It also shows the additional costs borne by consumers because of domestic assistance. The ERA does not distinguish between measures that may be considered legal or illegal under the WTO agreements. During the Uruguay Round Australia proposed that the ERA framework should be used in negotiations for trade liberalization, but it failed to attract widespread support. See also nominal rate of protection and tariff escalation.[1]

Effective rate of assistancein the wold Encyclopedia

For an introductory overview on international trade policy, see this entry.

Resources

Notes and References

1. Dictionary of Trade Policy, “Effective rate of assistance” entry (OAS)

See Also