Trade-weighted Average Tariffs

Trade-weighted average tariffs in Global Commerce Policy

In this regard, trade-weighted average tariffs is: a method of calculating the average impact of a tariff regime through weighting tariffs according to the amount of trade in a given tariff line. The entries on trade policy are here. Items traded in high volumes therefore have a greater impact on the calculation of the average tariff than items less or rarely traded. The major problem with this analytical approach is that high tariffs discourage trade in the first place, and an average tariff calculated in this way is always likely to understate the actual level of tariff protection. Nevertheless, its general usefulness as an indicator of the overall incidence of tariff rates is not in doubt.[1]

Trade-weighted average tariffsin the wold Encyclopedia

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

Resources

Notes and References

1. Dictionary of Trade Policy, “Trade-weighted average tariffs” entry (OAS)

See Also