Tariff Equivalent

(redirected from Tariff Equivalents)

Tariff Equivalent

A non-tariff barrier that has the same effect as a tariff. That is, a tariff equivalent discourages imports and promotes domestic industries and companies. Examples of tariff equivalents include import quotas or licensing restrictions. The GATT and the WTO have both tried to reduce tariff equivalents to promote more international trade.
References in periodicals archive ?
Eaton and Kortum (2002) report bilateral tariff equivalents based on data for 19 OECD countries in 1990.
Canadian trade cost tariff equivalents of 91% and 35%, respectively.
Economists often calculate ad valorem tariff equivalents of NTMs.
To allow these barriers to be compared with tariffs, a common approach is to construct ad valorem tariff equivalents of non-tariff barriers.
Such ad valorem tariff equivalents are an essential component in allowing Kee, Nicita, and Olarreaga (2009) to generate estimates of trade restrictiveness indices.
Converting transport costs into tariff equivalents shows how disruptive soaring energy prices can be.
And at oil prices at US$200 per barrel, the tariff equivalent rate will rise to 15 per cent.
A first attempt to do this has been undertaken by Francois and Hoekman (1999), who fit a gravity model to bilateral trade in services flows between the United States and its partner countries to estimate tariff equivalents for each partner country's or region's barriers to trade in services.
If this approach were to be followed, the end result would not be that different from the tariff equivalents that are obtained by running gravity model regressions--services protection estimates that are no more than double the average merchandise tariff.
In those industries where import quotas were the main instrument of protection, their tariff equivalents were used and obtained from recent International Trade Commission reports (U.
Given that there is a set of well-classified industries for which the tariff equivalents for import quotas have been used, and since there are political and economic differences between the use of tariffs and quotas, a slope quota-dummy (Quota) on PAC contributors is introduced.
Hoekman (1995) made a valiant attempt to quantify services protection across sectors by relating coverage ratios to tariff equivalents, however, comprehensive measures such as those provided in manufactures and agriculture have yet to be obtained.