Margin of Preference

Margin of Preference and the GATT Policy Negotiations

In relation to the GATT Policy Negotiations, Christopher Mark (1993) provided the following explanation and/or definition of Margin of Preference: The difference between the duty paid under a system of tariff preferences and the duty payable on an MFN basis. Some LDCs have complained that as average tariff levels in the industrial countries have been lowered through successive GATT Rounds, the margin of preference enjoyed by GSP beneficiaries has been eroded.