Bound Rates

Bound Rates and the GATT Policy Negotiations

In relation to the GATT Policy Negotiations, Christopher Mark (1993) provided the following explanation and/or definition of Bound Rates: Most favored-nation tariff rates resulting from GATT negotiations and thereafter incorporated as integral provisions of a country's tariff schedule. The bound rate may represent either a tariff reduction or a commitment not to raise an existing tariff rate (see binding).