A bound tariff rate is the most-favored-nation

tariff A tariff or import tax is a duty (tax), duty imposed by a national Government, government, customs territory, or supranational union on imports of goods and is paid by the importer. Exceptionally, an export tax may be levied on exports of goods ...

rate resulting from negotiations under the

General Agreement on Tariffs and Trade The General Agreement on Tariffs and Trade (GATT) is a legal agreement between many countries, whose overall purpose was to promote international trade by reducing or eliminating trade barriers such as tariffs or quotas. According to its p ...

(GATT) and incorporated as an integral component of a country’s schedule of concessions or commitments to other

World Trade Organization The World Trade Organization (WTO) is an intergovernmental organization headquartered in Geneva, Switzerland that regulates and facilitates international trade. Governments use the organization to establish, revise, and enforce the rules that g ...

members. If a country raises a tariff to a higher level than its bound rate, those adversely affected can seek remedy through the dispute settlement process and may obtain the right to retaliate against an equivalent value of the offending country’s exports or the right to receive compensation. Compensation usually takes the form of reduced tariffs on other products which the complainant country exports to the offending country.

References

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External links

*World Trade Organization
List of Bound Tariffs on the WTO schedules pageQuery WTO Bound tariff data
in World Integrated Trade Solution General Agreement on Tariffs and Trade