Tariff Redundancy

Tariff Redundancy

A policy in which a tariff is imposed or changed but it does not affect trade because some non-tariff barrier such as an import quota is already in place. Alternatively, a minute change in a tariff may be considered tariff redundancy because the change is not large enough to entice or discourage trade.
References in periodicals archive ?
The discussion that follows develops the motives for tariff redundancy in both the passive state and active state models, and suggests ways of comparing the two approaches.
11) Tariff redundancy does not depend on risk aversion by the producer interest.
12) Thus the penchant for ex ante tariff redundancy should be reinforced, ceteris paribus, in industries in which the variance of the world price is relatively high.
For a given tariff, t, the probability of observing ex post tariff redundancy is the cumulative density function for world price realizations above P* - t.
I have assumed no supply response and no gains from protection in the non-stochastic case in order to focus on the role of world price uncertainty alone as a motive for tariff redundancy.