Tarrification is the process whereby quotas, licenses, variable levies, and other nontariff barr

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Tarrification is the process whereby quotas, licenses,...

Key Concepts

Non-Tariff Barriers

Non-tariff barriers are trade restrictions that do not take the form of a direct duty or tax on imports or exports. Examples include quotas, licenses, and variable levies. These measures can regulate the quantity of goods traded or impose restrictions that affect market access and are significant tools in national trade policies.

Trade Policy Instruments

Trade policy instruments include both tariff and non-tariff measures that governments use to protect domestic industries or to influence the levels and types of international trade. Understanding the variety of these instruments, and how they can sometimes be quantitatively compared through processes like tarrification, is crucial for analyzing trade dynamics and policy impacts.

Tarrification

Tarrification refers to the process of converting non-tariff barriers—such as quotas, licenses, and variable levies—into tariff equivalents. This conversion is used to estimate the level of protection or trade restriction imposed by non-tariff measures by expressing them in tariff terms, which allows for easier comparisons and analysis of trade policy effects.

Tariff Equivalents

Tariff equivalents are theoretical tariff rates that would have the same effect on trade as a given non-tariff barrier. By assigning a monetary or percentage value to non-tariff measures, economists and policymakers can compare the impact of different types of trade protection measures on international trade flows.

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