What Is a Tariff?

In simplest terms, a tariff is a tax. It adds to the cost of imported goods and is one of several trade policies that a country can enact. Accessibility to an import market may be hampered by the tariff barriers, and the non-tariff barriers, of the importing country. The tariff barriers or import restraints are to protect the domestic manufacturers or producers from foreign competition. Export products generally become less competitive, or uncompetitive, as a result of the barriers.

Why Are Tariffs and Trade Barriers Used?

Tariffs are often created to protect infant industries and developing economies, but are also used by more advanced economies with developed industries. Here are five of the top reasons tariffs are used:

Protecting Domestic Employment The levying of tariffs is often highly politicized. The possibility of increased competition from imported goods can threaten domestic industries. These domestic companies may fire workers or shift production abroad to cut costs, which means higher unemployment and a less happy electorate. The unemployment argument often shifts to domestic industries complaining about cheap foreign labor, and how poor working conditions and lack of regulation allow foreign companies to produce goods more cheaply. In economics, however, countries will continue to produce goods until they no longer have a comparative advantage (not to be confused with an absolute advantage). Protecting Consumers A government may levy a tariff on products that it feels could endanger its population. For example, South Korea may place a tariff on imported beef from the United States if it thinks that the goods could be tainted with disease. Infant Industries The use of tariffs to protect infant industries can be seen by the Import Substitution Industrialization (ISI) strategy employed by many developing nations. The government

of a developing economy will levy tariffs on imported goods in industries in which it wants to foster growth. This increases the prices of imported goods and creates a domestic market for domestically produced goods, while protecting those industries from being forced out by more competitive pricing. It decreases unemployment and allows developing countries to shift from agricultural products to finished goods. Criticisms of this sort of protectionist strategy revolve around the cost of subsidizing the development of infant industries. If an industry develops without competition, it could wind up producing lower quality goods, and the subsidies required to keep the statebacked industry afloat could sap economic growth. National Security Barriers are also employed by developed countries to protect certain industries that are deemed strategically important, such as those supporting national security. Defense industries are often viewed as vital to state interests, and often enjoy significant levels of protection. For example, while both Western Europe and the United States are industrialized, both are very protective of defense-oriented companies. Retaliation Countries may also set tariffs as a retaliation technique if they think that a trading partner has not played by the rules. For example, if France believes that the United States has allowed its wine producers to call its domestically produced sparkling wines "Champagne" (a name specific to the Champagne region of France) for too long, it may levy a tariff on imported meat from the United States. If the U.S. agrees to crack down on the improper labeling, France is likely to stop its retaliation. Retaliation can also be employed if a trading partner goes against the government's foreign policy objectives.

Types of Tariffs and Trade Barriers

There are several types of tariffs and barriers that a government can employ:

Customs Duty Assessments:

Specific Tariffs A fixed fee levied on one unit of an imported good is referred to as a specific tariff. This tariff can vary according to the type of good imported. For example, a country could levy a $15 tariff on each pair of shoes imported, but levy a $300 tariff on each computer imported. Ad Valorem Tariffs The phrase ad valorem is Latin for "according to value", and this type of tariff is levied on a good based on a percentage of that good's value. An example of an ad valorem tariff would be a 15% tariff levied by Japan on U.S. automobiles. The 15% is a price increase on the value of the automobile, so a $10,000 vehicle now costs $11,500 to Japanese consumers. This price increase protects domestic producers from being undercut, but also keeps prices artificially high for Japanese car shoppers. Compound Duty Compound duty is assessed as a combination of the specific duty and ad valorem duty ($20 per kilogram net, plus 30% of FOB price). High Customs Duty The high import duties in many countries have been reduced under the former GATT (General Agreement on Tariffs and Trade) multilateral agreements. The GATT was formed in Geneva, Switzerland, in 1947 and it was succeeded by the WTO (World Trade Organization) on January 1, 1995. The organization, through multilateral agreements, helps reduce trade barriers between the signatory countries and promotes trade through tariff concessions. WTO has wide power to regulate international competition. Countervailing Duty

Countervailing duty is a duty imposed in addition to the regular (general) import duty, in order to counteract or offset the subsidy and bounty paid to foreign export-manufacturers by their government as an incentive to export, that would reduce the cost of goods. Imposing a countervailing duty is the answer to unfair competition from subsidized foreign goods. Anti-dumping Duty Anti-dumping duty is a duty imposed to offset the advantage gained by the foreign exporters when they sell their goods to an importing country at a price far lower than their domestic selling price or below cost. Dumping usually occurs from the oversupply of goods, which is often a result of overproduction, and from disposing of obsolete goods to other markets.

Measures of tariff:
Bound Tariffs Bound tariffs are specific commitments made by individual WTO member governments. The bound tariff is the maximum MFN tariff level for a given commodity line. When countries join the WTO or when WTO members negotiate tariff levels with each other during trade rounds, they make agreements about bound tariff rates, rather than actually applied rates. Bound tariffs are not necessarily the rate that a WTO member applies in practice to other WTO members' products. Members have the flexibility increase or decrease their tariffs (on a nondiscriminatory basis) so long as they didn't raise them above their bound levels. If one WTO member raises applied tariffs above their bound level, other WTO members can take the country to dispute settlement. If the country did not reduced applied tariffs below their bound levels, other countries could request compensation in the form of higher tariffs of their own. In other words, the applied tariff is less than or equal to the bound tariff in practice for any particular product. The gap between the bound and applied MFN rates is called the binding overhang. Trade economists argue that a large binding overhang makes a country's trade policies less predictable.

This gap tends to be small on average in industrial countries and often fairly large in developing countries as illustrated below. The binding coveragethe share of tariff lines with WTO-bound ratesalso varies across countries. Until the Uruguay Round of the GATT, which ended in 1994, countries agreed to bind tariffs only on manufactured goods; trade in agricultural products was excluded from the GATT when it was written in the late-1940s. Even within manufactured products, countries were not obligated to bind all tariff lines. Reflecting their relative lack of participation in previous trade rounds, developing countries tended to bind fewer tariff lines than industrial countries. During the Uruguay Round, countries committed to bind tariffs on all agricultural products. New members of the WTO have been asked to bind all manufactured tariff lines as well. The binding coverage varies by region. In Latin America, practically all countries bind all tariff lines. In Asia, the binding coverage varies from less than 15 percent in Bangladesh to 100 percent in Mongolia Effectively Applied Tariff When analyzing the effects of preferential tariffs on trade flows you will need to be careful with assumptions about which tariff rate is actually applied to a particular import. The importing country will apply the MFN tariff if the product fails to meet the country's rules that determine the product's country of origin. For example, some former European colonies find it easier to satisfy the rules of origin under the Cotonou Agreement rather than the Everything But Arms (EBA) program, even where preferential tariffs are lower under the EBA. WITS uses the concept of effectively applied tariff which is defined as the lowest available tariff. If a preferential tariff exists, it will be used as the effectively applied tariff. Otherwise, the MFN applied tariff will be used. National Tariff Line Level (TLL) Each national tariff schedule defines products in slightly different ways. Countries generally base their tariff schedules on the World Customs Organization's Harmonized System (HS) nomenclature, which emerged through international cooperation during the 1970s and 1980s as a trade facilitation measure.

The HS specifies products using six digits, from 010110 (purebred breeding live horses, asses, and ninnies) to 970600 (antique works of art exceeding 100 years in age). Countries then append additional digits to distinguish between different tariff lines. The graphics below shows that the 2005 U.S. tariff schedule has three different tariff lines under the HS sub-heading 950611 (Skis).

Some countries disaggregate tariff lines even further for statistical purposes. For example, the U.S. tariff line is disaggregated to 8 digits.

Tariff in india
India: Applied tariffs for wheat and rice, by quarter, Jan. 2006April 2009

Fig-1

India: Applied tariffs for selected vegetable oils, by quarter, Jan. 2005Jan. 2009

Wheat: The tariff rate on wheat was lowered as poor harvests caused domestic prices

to increase. The rate was lowered from 50 percent to 5 percent in June 2006 before being reduced to zero in September 2006. As a result, India imported wheat in 2006 for the first time since 2001.31 As domestic production increased and prices declined, India returned the rate to 50 percent on January 1, 2009. Rice: Concerns about the rising price of rice caused India to lower the tariff rate on rice from 70 percent to zero in March 2008. When market prices stabilized in March 2009, the tariff rate was returned to 70 percent. 32 Pulses: The wholesale price index for pulses rose by 45.6 percent between 2003 and 2006.33 As a result, on June 8, 2006, the Indian government exempted pulses from the applicable 10 percent import duty in order to control prices. The duty exemption has been extended until March 31, 2010.34 Vegetable oils: In order to support farm prices, India raised tariff rates in early 2005 on crude palm oil from 65 percent to 80 percent and on refined palm oil from 70 percent to 90 percent. In early 2007, edible oil prices began rising quickly because of lower domestic production, which led the government to reduce rates three times during 2007 on both crude and refined palm oils, before reducing the tariff rates on crude soybean and crude palm oils to zero and on all refined edible oils to 7.5 percent on April 1, 2008.35 During the remainder of 2008 and through early 2009, prices and import levels if soybean oil continued to fluctuate, and as a result, the tariff rate on crude soybean oil also continued to vary. India also reportedly raises its applied tariff rates on products in isolated instances to increase market prices. The Indian government raised tariff rates on at least 30 agricultural products between 2002 and 2008.37 In some cases tariffs were raised to protect growing industries. For example, the tariff rate on cut flowers was increased from 30 percent to 60 percent in the FY 2005/06 budget, reportedly to protect an infant industry with expanding employment and export potential.38 Other examples of tariff-rate increases during 200208 involve natural honey, margarine, garlic, coffee, cigars, and pepper.

Non-tariff barriers to trade

Non-tariff barriers to trade (NTBs) are trade barriers that restrict imports but are not in the usual form of a tariff. Some common examples of NTB's are anti-dumping measures and countervailing duties, which, although they are called "non-tariff" barriers, have the effect of tariffs once they are enacted. Their use has risen sharply after the WTO rules led to a very significant reduction in tariff use. Some non-tariff trade barriers are expressly permitted in very limited circumstances, when they are deemed necessary to protect health, safety, or sanitation, or to protect delectable natural resources. In other forms, they are criticized as a means to evade free trade rules such as those of the World Trade Organization (WTO), the European Union (EU), or North American Free Trade Agreement (NAFTA) that restrict the use of tariffs. Some of non-tariff barriers are not directly related to foreign economic regulations, but nevertheless they have a significant impact on foreign-economic activity and foreign trade between countries.

Trade between countries is referred to trade in goods, services and factors of production. Nontariff barriers to trade include import quotas, special licenses, unreasonable standards for the quality of goods, bureaucratic delays at customs, export restrictions, limiting the activities of state trading, export subsidies, countervailing duties, technical barriers to trade, sanitary and phyto-sanitary measures, rules of origin, etc. Sometimes in this list they include macroeconomic measures affecting trade.

Types of Non-Tariff Barriers

There are several different variants of division of non-tariff barriers. Some scholars divide between internal taxes, administrative barriers, health and sanitary regulations and government procurement policies. Others divide non-tariff barriers into more categories such as specific limitations on trade, customs and administrative entry procedures, standards, government participation in trade, charges on import, and other categories. We choose traditional classification of non-tariff barriers, according to which they are divided into 3 principal categories. The first category includes methods to directly import restrictions for protection of certain sectors of national industries: licensing and allocation of import quotas, antidumping and countervailing duties, import deposits, so-called voluntary export restraints, countervailing duties, the system of minimum import prices, etc. Under second category follow methods that are not directly aimed at restricting foreign trade and more related to the administrative bureaucracy, whose actions, however, restrict trade, for example: customs procedures, technical standards and norms, sanitary and veterinary standards, requirements for labeling and packaging, bottling, etc. The third category consists of methods that are not directly aimed at restricting the import or promoting the export, but the effects of which often lead to this result. Licenses The most common instruments of direct regulation of imports (and sometimes export) are licenses and quotas. Almost all industrialized countries apply these non-tariff methods. The license system requires that a state (through specially authorized office) issues permits for foreign trade transactions of import and export commodities included in the lists of licensed

merchandises. Product licensing can take many forms and procedures. The main types of licenses are general license that permits unrestricted importation or exportation of goods included in the lists for a certain period of time; and one-time license for a certain product importer (exporter) to import (or export). One-time license indicates a quantity of goods, its cost, its country of origin (or destination), and in some cases also customs point through which import (or export) of goods should be carried out. The use of licensing systems as an instrument for foreign trade regulation is based on a number of international level standards agreements. In particular, these agreements include some provisions of the General Agreement on Tariffs and Trade and the Agreement on Import Licensing Procedures, concluded under the GATT (GATT). Quotas Licensing of foreign trade is closely related to quantitative restrictions quotas - on imports and exports of certain goods. A quota is a limitation in value or in physical terms, imposed on import and export of certain goods for a certain period of time. This category includes global quotas in respect to specific countries, seasonal quotas, and so-called "voluntary" export restraints. Quantitative controls on foreign trade transactions carried out through one-time license. Quantitative restriction on imports and exports is a direct administrative form of government regulation of foreign trade. Licenses and quotas limit the independence of enterprises with a regard to entering foreign markets, narrowing the range of countries, which may be entered into transaction for certain commodities, regulate the number and range of goods permitted for import and export. However, the system of licensing and quota imports and exports, establishing firm control over foreign trade in certain goods, in many cases turns out to be more flexible and effective than economic instruments of foreign trade regulation. This can be explained by the fact, that licensing and quota systems are an important instrument of trade regulation of the vast majority of the world. The consequence of this trade barrier is normally reflected in the consumers loss because of higher prices and limited selection of goods as well as in the companies that employ the imported materials in the production process, increasing their costs. An import quota can be unilateral, levied by the country without negotiations with exporting country, and bilateral or multilateral, when it is imposed after negotiations and agreement with exporting country. An export quota is a restricted amount of goods that can leave the country. There are different reasons for imposing of

export quota by the country, which can be the guarantee of the supply of the products that are in shortage in the domestic market, manipulation of the prices on the international level, and the control of goods strategically important for the country. In some cases, the importing countries request exporting countries to impose voluntary export restraints. Agreement on a "voluntary" export restraint In the past decade, a widespread practice of concluding agreements on the "voluntary" export restrictions and the establishment of import minimum prices imposed by leading Western nations upon weaker in economical or political sense exporters. The specifics of these types of restrictions is the establishment of unconventional techniques when the trade barriers of importing country, are introduced at the border of the exporting and not importing country. Thus, the agreement on "voluntary" export restraints is imposed on the exporter under the threat of sanctions to limit the export of certain goods in the importing country. Similarly, the establishment of minimum import prices should be strictly observed by the exporting firms in contracts with the importers of the country that has set such prices. In the case of reduction of export prices below the minimum level, the importing country imposes anti-dumping duty which could lead to withdrawal from the market. Voluntary" export agreements affect trade in textiles, footwear, dairy products, consumer electronics, cars, machine tools, etc. Problems arise when the quotas are distributed between countries, because it is necessary to ensure that products from one country are not diverted in violation of quotas set out in second country. Import quotas are not necessarily designed to protect domestic producers. For example, Japan, maintains quotas on many agricultural products it does not produce. Quotas on imports is a leverage when negotiating the sales of Japanese exports, as well as avoiding excessive dependence on any other country in respect of necessary food, supplies of which may decrease in case of bad weather or political conditions. Export quotas can be set in order to provide domestic consumers with sufficient stocks of goods at low prices, to prevent the depletion of natural resources, as well as to increase export prices by restricting supply to foreign markets. Such restrictions (through agreements on various types of goods) allow producing countries to use quotas for such commodities as coffee and oil; as the result, prices for these products increased in importing countries.

Embargo Embargo is a specific type of quotas prohibiting the trade. As well as quotas, embargoes may be imposed on imports or exports of particular goods, regardless of destination, in respect of certain goods supplied to specific countries, or in respect of all goods shipped to certain countries. Although the embargo is usually introduced for political purposes, the consequences, in essence, could be economic. Standards Standards take a special place among non-tariff barriers. Countries usually impose standards on classification, labeling and testing of products in order to be able to sell domestic products, but also to block sales of products of foreign manufacture. These standards are sometimes entered under the pretext of protecting the safety and health of local populations. Administrative and bureaucratic delays at the entrance Among the methods of non-tariff regulation should be mentioned administrative and bureaucratic delays at the entrance which increase uncertainty and the cost of maintaining inventory. Import deposits Another example of foreign trade regulations is import deposits. Import deposits is a form of deposit, which the importer must pay the bank for a definite period of time (non-interest bearing deposit) in an amount equal to all or part of the cost of imported goods. At the national level, administrative regulation of capital movements is carried out mainly within a framework of bilateral agreements, which include a clear definition of the legal regime, the procedure for the admission of investments and investors. It is determined by mode (fair and equitable, national, most-favored-nation), order of nationalization and compensation, transfer profits and capital repatriation and dispute resolution. Foreign exchange restrictions and foreign exchange controls Foreign exchange restrictions and foreign exchange controls occupy a special place among the non-tariff regulatory instruments of foreign economic activity. Foreign exchange restrictions constitute the regulation of transactions of residents and nonresidents with currency and other currency values. Also an important part of the mechanism of control of foreign economic activity is the establishment of the national currency against foreign currencies.

The transition from tariffs to non-tariff barriers

One of the reasons why industrialized countries have moved from tariffs to NTBs is the fact that developed countries have sources of income other than tariffs. Historically, in the formation of nation-states, governments had to get funding. They received it through the introduction of tariffs. This explains the fact that most developing countries still rely on tariffs as a way to finance their spending. Developed countries can afford not to depend on tariffs, at the same time developing NTBs as a possible way of international trade regulation. The second reason for the transition to NTBs is that these tariffs can be used to support weak industries or compensation of industries, which have been affected negatively by the reduction of tariffs. The third reason for the popularity of NTBs is the ability of interest groups to influence the process in the absence of opportunities to obtain government support for the tariffs.

Non-tariff barriers today

With the exception of export subsidies and quotas, NTBs are most similar to the tariffs. Tariffs for goods production were reduced during the eight rounds of negotiations in the WTO and the General Agreement on Tariffs and Trade (GATT). After lowering of tariffs, the principle of protectionism demanded the introduction of new NTBs such as technical barriers to trade (TBT). According to statements made at United Nations Conference on Trade and Development (UNCTAD, 2005), the use of NTBs, based on the amount and control of price levels has decreased significantly from 45% in 1994 to 15% in 2004, while use of other NTBs increased from 55% in 1994 to 85% in 2004. Increasing consumer demand for safe and environment friendly products also have had their impact on increasing popularity of TBT. Many NTBs are governed by WTO agreements, which originated in the Uruguay Round (the TBT Agreement, SPS Measures Agreement, the Agreement on Textiles and Clothing), as well as GATT articles. NTBs in the field of services have become as important as in the field of usual trade. Most of the NTB can be defined as protectionist measures, unless they are related to difficulties in the market, such as externalities and information asymmetries information asymmetries

between consumers and producers of goods. An example of this is safety standards and labeling requirements. The need to protect sensitive to import industries, as well as a wide range of trade restrictions, available to the governments of industrialized countries, forcing them to resort to use the NTB, and putting serious obstacles to international trade and world economic growth. Thus, NTBs can be referred as a new of protection which has replaced tariffs as an old form of protection.

Who Benefits?
The benefits of tariffs are uneven. Because a tariff is a tax, the government will see increased revenue as imports enter the domestic market. Domestic industries also benefit from a reduction in competition, since import prices are artificially inflated. Unfortunately for consumers - both individual consumers and businesses - higher import prices mean higher prices for goods. If the price of steel is inflated due to tariffs, individual consumers pay more for products using steel, and businesses pay more for steel that they use to make goods. In short, tariffs and trade barriers tend to be pro-producer and anti-consumer. The effect of tariffs and trade barriers on businesses, consumers and the government shifts over time. In the short run, higher prices for goods can reduce consumption by individual consumers and by businesses. During this time period, businesses will profit and the government will see an increase in revenue from duties. In the long term, businesses may see a decline in efficiency due to a lack of competition, and may also see a reduction in profits due to the emergence of substitutes for their products. For the government, the long-term effect of subsidies is an increase in the demand for public services, since increased prices, especially in foodstuffs, leave less disposable income.

How Do Tariffs Affect Prices?

Tariffs increase the prices of imported goods. Because of this, domestic producers are not forced to reduce their prices from increased competition, and domestic consumers are left paying higher prices as a result. Tariffs also reduce efficiencies by allowing companies that would not exist in a more competitive market to remain open. Tariffs and Modern Trade: The role tariffs play in international trade has declined in modern times. One of the primary reasons for the decline is the introduction of international organizations designed to improve free trade, such as the World Trade Organization (WTO). Such organizations make it more difficult for a country to levy tariffs and taxes on imported goods, and can reduce the likelihood of retaliatory taxes. Because of this, countries have shifted to nontariff barriers, such as quotas and export restraints. Organizations like the WTO attempt to reduce production and consumption distortions created by tariffs. These distortions are the result of domestic producers making goods due to inflated prices, and consumers purchasing fewer goods because prices have increased. Since the 1930s, many developed countries have reduced tariffs and trade barriers, which has improved global integration and brought about globalization. Multilateral agreements between governments increase the likelihood of tariff reduction, while enforcement on binding agreements reduces uncertainty.

Difference Between Tariff Barriers and Non Tariff Barriers

Tariff Barriers vs Non Tariff Barriers All countries are dependent on other countries for some products and services as no country can ever hope to be self reliant in all respects. There are countries having abundance of natural resources like minerals and oil but are deficient in having technology to process them into finished goods. Then there are countries that are facing shortage of manpower and services. All such shortcomings can be overcome through international trade. Though it seems easy, in reality, importing goods from foreign countries at cheap prices hits domestic producers badly. As such, countries impose taxes on goods coming from abroad to make their cost comparable with domestic goods. These are called tariff barriers. Then there are non tariff barriers also that serve

as impediments in free international trade. This article will try to find out differences between tariff and non tariff barriers. Tariff Barriers Tariffs are taxes that are put in place not only to protect infant industries at home, but also to prevent unemployment because of shut down of domestic industries. This leads to unrest among the masses and an unhappy electorate which is not a favorable thing for any government. Secondly, tariffs provide a source of revenue to the government though consumers are denied their right to enjoy goods at a cheaper price. There are specific tariffs that are a one time tax levied on goods. This is different for goods in different categories. There are Ad Valorem tariffs that are a ploy to keep imported goods pricier. This is done to protect domestic producers of similar products.

Non Tariff Barriers Placing tariff barriers are not enough to protect domestic industries, countries resort to non tariff barriers that prevent foreign goods from coming inside the country. One of these non tariff barriers is the creation of licenses. Companies are granted licenses so that they can import goods and services. But enough restrictions are imposed on new entrants so that there is less competition and very few companies actually are able to import goods in certain categories. This keeps the amount of goods imported under check and thus protects domestic producers. Import Quotas is another trick used by countries to place a barrier to the entry of foreign goods in certain categories. This allows a government to set a limit on the amount of goods imported in a particular category. As soon as this limit is crossed, no importer can import further quantities of the goods. Non tariff barriers are sometimes retaliatory in nature as when a country is antagonistic to a particular country and does not wish to allow goods from that country to be imported. There are instances where restrictions are placed on flimsy grounds such as when western countries cite reasons of human rights or child labor on goods imported from third world countries. They also place barriers to trade citing environmental reasons. What is the difference between Tariff Barriers and non Tariff Barriers The purpose of both tariff and non tariff barriers is same that is to impose restriction on

import but they differ in approach and manner. Tariff barriers ensure revenue for a government but non tariff barriers do not bring any revenue. Import Licenses and Import quotas are some of the non tariff barriers. Non tariff barriers are country specific and often based upon flimsy grounds that can serve to sour relations between countries whereas tariff barriers are more transparent in nature.

Impact of trade barriers :

Impact of trade barriers Advanced industrial nations committed themselves after World War II to removing barriers to the free flow of goods, services,and capital between nations This goal was enshrined in the General Agreement on Trade and Tariffs [GATT] Under the umbrella of GATT, eight rounds of negotiations among member states(now numbering 146) have worked to lower barriers to the free flow of goods and services The most recent round of negotiations, known as the Uruguay Round, was completed in Dec,1993.The Uruguay round further reduced trade barriers; extended GATT to cover services as well as manufactured goods; provided enhanced protection for patents, trademarks, and copyrights; and established the World Trade Organization (WTO)to police the international trading system Impact of trade barriers In the late 2001, the WTO launched a new round of talks [Doha,Qatar] aimed at further liberalizing the global trade and investment framework. The agenda included cutting tariffs on industrial goods, services,and agricultural products; phasing out subsidies to agricultural producers; reducing barriers to cross border investments; and limiting the antidumping laws. The rich nations spend around $300 billion a year in subsidies to support their farm sectors. The worlds poorer nations have the most to gain from any reductions in agricultural tariffs and subsidies.

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International Trade: Barriers to International Trade Infoplease.com http://www.infoplease.com/cig/economics/barriers-internationaltrade.html#ixzz1juJM1wSP

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