Breach of Concession Agreement(redirected from Breaches of Concession Agreement)
Breach of Concession Agreement
The deliberate raising of a tariff in violation of a concession. A concession is an agreement in which one country reduces tariffs on its imports from another country in exchange for an equivalent, or at least a similar, reduction from the second country. Concessions are intended to stimulate international commerce between the two countries. A breach of concession occurs when one country unilaterally raises its tariffs higher than the level stipulated by the agreement. It may result in a complaint to the World Bank, a reciprocal hike in tariffs against the offending country, or, in the worst case scenario, a trade war.