The rules and tariffs governing international trade involve multilateral agreements, national policies, and economic strategies. The following are key points:
Core Rules of International Trade
- WTO Framework
Non-discrimination: This includes most-favored-nation treatment (equal treatment for all WTO members) and national treatment (imported goods are treated equally with domestic goods).
Transparency: Countries must disclose their trade policies to avoid hidden barriers.
Free Trade: Tariffs and non-tariff barriers are reduced through multiple rounds of negotiations (such as the Uruguay Round).
Fair Competition: Opposes dumping (low-priced exports) and subsidies (such as agricultural export subsidies).
- Regional Trade Agreements (RTAs)
For example, the USMCA (United States-Mexico-Canada Agreement) and the RCEP (Regional Comprehensive Economic Partnership) allow member countries to offer more favorable terms than those under the WTO, but they must comply with WTO rules (e.g., covering "substantial trade").
- Trade Remedies
Anti-dumping duties: Target goods exported below cost.
Countervailing duties: Offset the impact of government subsidies (such as the EU investigation into Chinese photovoltaic products). - Safeguard measures: Temporary tariff increases in response to a surge in imports (e.g., the US steel safeguard measures of 2002).
- Dispute Settlement: The WTO's Dispute Settlement Body (DSB) handles disputes between member states, such as the US v. EU Airbus subsidies case.
Tariff Setting Mechanisms
- Autonomous Tariffs
- Countries can set their own tariffs, but are bound by WTO regulations (e.g., India imposes a 150% tariff on whiskey, but is subject to WTO negotiations).
- Bound Tariffs
- The maximum tariff rate pledged at the WTO is often lower than the actual tariff imposed (applied). For example, a country may pledge a maximum tariff of 25% on automobiles, but may actually impose 10%.
- Special Tariff Arrangements
- Generalized System of Preferences (GSP): Developed countries offer tariff reductions or exemptions to developing countries (e.g., the EU's preferential policies for African countries).
- Duty-free Free Trade Areas: For example, 90% of goods between ASEAN member states are tariff-free.
- Dynamic Adjustment Factors
- Protected Industries: The US imposes a 25% tariff ("chicken tax") on imported trucks to protect its domestic auto industry.
- Political Factors: In 2020, the United States imposed tariffs on European wine as a retaliation against the digital tax.
- Fiscal Revenue: Some developing countries rely on tariff revenue (for example, Bangladesh's tariffs account for approximately 30% of tax revenue).
Non-Tariff Barriers (NTBs)
Quotas: For example, China implements a tariff-rate quota (TRQ) for corn, with a 1% tax on the in-quota portion and a 65% tax on the out-of-quota portion.
Technical Barriers (TBT): The EU's CE certification and Japan's JIS standards.
Sanitary and Phytosanitary (SPS):
Recent Trends and Challenges
- The Rise of Unilateral Tariffs
For example, the US imposed tariffs on $370 billion worth of Chinese goods under Section 301 (starting in 2018), sparking a WTO legality dispute.
- Digital Trade Rules
For example, the US-Japan Digital Trade Agreement prohibits data localization requirements, impacting cross-border e-commerce.
- Environmental and Labor Standards
The EU plans to implement a "Carbon Border Tax" (CBAM) to tax high-carbon imports.
Case Study
Auto Tariffs: The EU imposes a 10% tariff on imported cars, while the US imposes a 2.5% tariff (25% for trucks). China has pledged to reduce this to 15% by 2023.
Agricultural Subsidies: The WTO ruled that US cotton subsidies were illegal, allowing Brazil to impose retaliatory tariffs.
International trade rules, centered around the WTO, are facing challenges of regionalization and politicization. Tariff setting balances protectionism with the need for openness, while non-tariff barriers are becoming increasingly complex. Understanding these mechanisms helps analyze global economic phenomena such as trade wars and industrial chain shifts.