Peak Tariffs

Peak tariffs in Global Commerce Policy

In this regard, peak tariffs is: if the tariff rates contained in a typical national tariff schedule were represented chapter by chapter as a continuous line in a graph, the result probably would be something like a series of plateaus interspersed with sudden peaks. The entries on trade policy are here. Each peak would mean that that product, or group of products, is benefiting from higher protection than the products expressed by plateaus. Peak tariff rates are to a large extent a relative concept, though during the Uruguay Round they were defined for negotiating purposes as above 15%. The entries on trade policy are here. A rate of 10% in a schedule averaging 4%, as many of the developed-country rates for industrial products are as a result of the Uruguay Round, would represent a peak just as a rate of 40% would in the environment of rates around 20%. The presence of pronounced peak tariff rates may show only one aspect of the protection available to domestic producers. There are cases where their absence is masked by a range of non-tariff measures with the same or a greater impact. See also sensitive products.[1]

Peak tariffsin the wold Encyclopedia

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

Resources

Notes and References

1. Dictionary of Trade Policy, “Peak tariffs” entry (OAS)

See Also