Tariff Escalation

Tariff Escalation

A situation in which the tariff on raw material imports is lower than the tariff on semi-finished goods, which is lower still than the tariff on finished products. Tariff escalation is the most common tariff regime.
References in periodicals archive ?
Due to the fear of tariff escalation the city governments have not been interested in bringing more investments in the sector to improve the power infrastructure.
He called on Latin governments to write their trade agendas along the same lines, addressing Chinese tariff escalation regimes that impose higher duties on goods as they move up the value-added scale.
However, much remains to be done, including reducing tariff peaks and tariff escalation.
We want tariff escalation and tariff peaks to be taken care of and high barriers dismantled," Pangestu said.
Moreover, tariff peaks, tariff escalation, tariff rate quotas and other non-tariff measures including antidumping duties, countervailing duties, and safeguard measures to protect against serious injury from import surges, allowed under the WTO, have become major impediments to market access for developing countries exports.
Developing countries are seeking an end, or at least an easing, of the practice of tariff escalation, by which developed trading nations raise duties on processed goods whose components they allow in almost duty free as raw materials.
The July package is not as proscriptive on industrial products, but it does reaffirm the need for across-the-board reductions in tariffs and non-tariff barriers including high tariff peaks and tariff escalation in some industrial products.
It calls for the elimination of tariff escalation that penalizes exports of processed goods from developing countries.
This modality preserves the URAA flexibility of specifying both average rates of reduction and minimum reductions for any tariff line, while applying deeper cuts to megatariffs, thus contributing to a flattening of tariff peaks and reduction of tariff escalation.
At the Committee's request, the ITC will describe the tariff and non-tariff barriers affecting trade in major and potential markets, evaluate the prevalence of tariff escalation for processed food and beverage products, and analyze the impact of tariff and non-tariff barriers on trade and investment in the processed food and beverage sectors.
As a result, the Paris-based Organisation for Economic Co-operation and Development has called upon its member states to "look into tariff escalation issues and try to reduce such practices.
The elimination of tariff escalation on value-added goods should aid Chile's continuing diversification in processed natural resource exports, while lowered uncertainty of market access should help counter potential trade protectionism.