The effective tariff protection relates a tariff duty to the value added in the manufacturing process of a given product. However, inherent difficulties exist in measuring the value added in a given manufacturing process and it is extremely difficult to get the detailed data needed to calculate effective rates of protection. The data available in the IDB permits the calculation of nominal rates of protection only.  

See DUTY

Formally, the "Decision on Differential and More Favorable Treatment, Reciprocity, and Fuller Participation of Developing Countries" that was negotiated during the Tokyo Round as Part I of a new Framework Agreement on International Trade. The Enabling Clause legalized the extension by developed contracting parties of GATT of preferences to developing and least developed countries, notwithstanding the most-favored-nation treatment required under GATT Article I. In addition, it allows that developing countries can mutually reduce or eliminate the tariff duties of products imported from other developing countries.

Derived from: http://usinfo.state.gov/products/pubs/trade/glossdi.htm#d

Tariff escalation is observed when tariffs on raw materials are lower than tariffs on semi manufactures, which, in turn are lower than tariffs on finished products. Tariffs escalate with the stage of processing. In theory, a reduction of the tariff escalation entails a reduction of the effective protection.

See also STAGE OF PROCESSING

Related terms:

TARIFF ANOMALY - Used by some to refer to what is commonly known as tariff escalation, i.e. the tariff rate on raw materials or semi-finished products is lower than on the finished product made of these materials in order to encourage domestic manufacturing. For others, a tariff anomaly is precisely the opposite, i.e. the tariff rate on raw materials and semi-finished products is higher then the rate levied on the finished product.

Source: Walter Goode: Dictionary of Trade Policy Terms, Fourth Edition, (Cambridge University Press/WTO, 2003), p.337

The number of units of currency equivalent to one unit of another currency. The exchange rate of a national currency to the US dollar should be provided with IDB imports submissions.

A tax that is levied on imported products as well as on domestically produced goods to generate revenue. A fiscal tax is therefore not equivalent to a customs tariff duty since it has no protective effects. Fiscal taxes are sometimes included in the customs tariff duties. In such cases, the fiscal element of the duty is deducted from the tariff duty. Only the protective part of the duty is recorded in the IDB tariff files.

See QUOTAS

A restriction by an exporting country of the quantity of exports to a specific importing country, usually established at the request of the importing country.

The Agreement on Agriculture prohibits export subsidies on agricultural products unless the subsidies are specified in a member’s lists of commitments. Where they are listed, the agreement requires WTO members to cut both the amount of money they spend on export subsidies and the quantities of exports that receive subsidies. Taking averages for 1986-90 as the base level, developed countries agreed to cut the value of export subsidies by 36% over the six years starting in 1995 (24% over 10 years for developing countries). Developed countries also agreed to reduce the quantities of subsidized exports by 21% over the six years (14% over 10 years for developing countries). Least-developed countries do not need to make any cuts.

During the six-year implementation period, developing countries are allowed under certain conditions to use subsidies to reduce the costs of marketing and transporting exports.

See DUTY

This can mean the same as foreign trade generally. It can also refer to the foreign trade conducted by members of a preferential trade arrangement with non-members. The trade between the partners to such an arrangement is then called internal trade.

Source: Walter Goode: Dictionary of Trade Policy Terms, Fourth Edition, (Cambridge University Press/WTO, 2003), p.134