Ad Valorem Equivalent

Ad Valorem Equivalent

Ad Valorem Equivalent (A VE) and the GATT Policy Negotiations

In relation to the GATT Policy Negotiations, Christopher Mark (1993) provided the following explanation and/or definition of Ad Valorem Equivalent (A VE): A specific duty expressed in terms of a percentage of the value of the product in question. For example, a duty of $5 per ton on a product valued at $50 per ton has an A YE of 10 percent. When tariff negotiations are conducted on a percentage-reduction basis, AVEs must be calculated in order to permit proportional cuts in specific duties-


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