Binding a Tariff

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Binding a Tariff

A promise by a country not to raise its tariffs for the foreseeable future. Binding a tariff is considered favorable for international trade because it gives potential exporters and importers a level of certainty they otherwise would not have. The World Trade Organization encourages tariff binding.
References in periodicals archive ?
Tariff binding coverage is only 38% (in that, only 38% of products in Sri Lanka's list of commitments are legally committed/bound with the WTO).
The Member states gave tariff binding commitments and agreed to initiate negotiations to further liberalizing agricultural trade and removing trade barriers.
The maximum tariff binding under GATT Article II (32) has important ramifications for development.
This occurs when a country is alleged to have failed to carry out its GATT/WTO obligations, as when a tariff binding is broken.
5 percent for US priority products; -- follow WTO standards in eliminating all quantitative restrictions on bulk commodities; adopt upon accession a tariff-rate quota system in particularly sensitive sectors like wheat, corn and rice; -- eliminate all export subsidies, and give a tariff binding on all agricultural products Industrial Products -- reduce overall average tariff to 9.
This was a process which involved making tariff bindings and concessions as requested by the more developed countries.
The actual level of tariffs is also substantially lower than the tariff bindings of the World Trade Organisation.
The market access proposals currently on the table are for tariff bindings well above these levels and allowances can, and will be made for sensitive sectors in the economy.
In particular, the developing countries pressed for the inclusion of several further proposals and demanded abolition of the non-linear formula, wanted the sectoral tariff component to be voluntary; and asked for more flexibility in tariff cuts and tariff bindings.
What we are looking for is tariff bindings to provide predictability in world trade", she said.
It may also be noted that, on average, the portion of an industry's imports that were subject to tariff bindings introduced by the 1948 agreement, the Kennedy round, and the Tokyo round corresponded to 11.