Prof. Dr. Lepi T. Tarmidi
Department of Economics, University of Indonesia
October 2007

Barriers to Trade

1. Tariff
Before the GATT Uruguay Round, average tariff rate in developed countries was already relatively low, around 8%. After the GATT Uruguay Round/WTO, the average tariff rate further declined to 5.6%. Hence tariff protection is not important any more, except in agriculture. Besides, developed countries offer tariff cuts to imports from developing countries under the Generalized System of Preferences (GSP). On the other hand, developed countries practice tariff escalation, the more advanced the production process the higher is the tariff rate.
The European Union (EU) imposes a tariff rate of 12 % for imports of canned tuna from Indonesia if the volume is within the quota limit for GSP, but in excess of it the rate increases to 24 % (Kompas, 15 June 2005).
Since tariffs are not an effective instrument of trade protection anymore, developed countries now refer to......

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Title: Barriers To Trade
Approximate Word Count: 2716
Approximate Pages: 11 (250 words per double-spaced page)

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