Barriers to Trade WTO
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BARRIERS TO TRADE
Tariffs
Tariff only give a limited amount of protection. Tariffs have a further advantage in that they are considered one of the least protectionist types of border measures. For instance, a tariff of 20 percent will not protect domestic producers if importers can sell at 25 percent below theirs. Tariffs can take many forms. They may be specific, such as a flat rate on a particular product or may be a variable levy that changes to take account of differences between domestic and international prices. The WTO often negotiates reducing tariffs by a certain percentage due to the fact that some developing countries charge higher tariff rates than developed countries.
Non-Tariff
Anti-dumping Rules
Dumping occurs when a producers sells their goods in that market at a price below that in which they are sold in the home market. The duties are designed to offset the injurious effect of the dumping margin in the importing country. The main problem with identifying dumping activities is measurement. Identifying if dumping has occurred becomes difficult when the producer is not selling in the home market...