Tariffication. Conversion of NTBs (Non-Tariff Barriers) to tariffs at the level of their tariff equivalent. In the Uruguay Round, agricultural NTBs were tariffied and bound, to replace unwieldy NTBs with tariffs that could then become the subject of negotiation. Unbound Tariff Lines: Tariff line or product on which there is no ceiling, so applied tariff can go to any level. Uruguay Round: Round of multilateral trade negotiations from 1986-94 that led to WTO replacing GATT.
Tariffication. Procedures relating to the agricultural market-access provision in which all non-tariff measures are converted into tariffs. Tariffs - Customs duties on merchandise imports. Levied either on an ad valorem basis (percentage of value) or on a specific basis (e.g. $7 per 100 kgs). Tariffs give price advantage to locally produced goods and raise revenues for the government. Tariffs are allowed to protect domestic industries. However, they are reduced through negotiations between countries in the WTO and then they are ―consolidated‖. This means that they cannot be increased again unless the principally affected exporting countries, which negotiated the concession, are compensated by concessions on other products (Article XXVIII GATT). Tariffs have been reduced in the previous eight trade Rounds, as a result of which the EU average industrial tariff is now about 3%, down from 35% in 1947.
Tariffication. The objective of tariffication was to enhance market access by removing non-tariff barriers and converting them into tariff equivalents (Art 4.1 and Footnote 1, AoA).3 However, countries that were maintaining non-tariff barriers managed to convert to tariff equivalents at high levels by choosing suitable options for tariffication. As a result, a plethora of non-tariff barriers were replaced by high tariffs in developed countries, which impeded market access. For instance, Switzerland, Japan and other developed members got the flexibility to impose very high tariffs on their sensitive agricultural products, as shown in table 1. As most of the developing countries did not maintain non- tariff barriers, this mechanism worked to their disadvantage. Table 1: Bound tariff peaks in select WTO members Member Specific Product Maximum Bound Tariff (%) Switzerland Cereal and Preparations 637 Japan Cereal and Preparations 662 Norway Cereal and Preparations 549 Dairy 453 Canada Cereal and Preparations 277 Dairy 314 Source: Tariff Profiles, WTO
