Tariff Escalation

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Tariff Escalation

Tariff Escalation and the GATT Policy Negotiations

In relation to the GATT Policy Negotiations, Christopher Mark (1993) provided the following explanation and/or definition of Tariff Escalation: The application of tariff rates on raw materials that are lower than on processed versions of the same or derivative products. Exporters of primary commodities argue that tariff escalation in importing countries impedes their efforts to move “upstream” to higher-value-added processing and manufacturing activities.

Tariff Escalation in International Trade

Meaning of Tariff Escalation, according to the Dictionary of International Trade (Global Negotiator): Higher import duties on semi-processed products than on raw materials, and higher still on finished products. This practice protects domestic processing industries and discourages the development of processing activity in the countries where raw materials originate.

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