Tariffs
Effective Rate of Protection
Also known as: ERP, Effective tariff protection
A measure that calculates the real level of tariff protection an industry receives, considering tariffs on both inputs and the finished product.
Also known as: ERP, Effective tariff protection
A measure that calculates the real level of tariff protection an industry receives, considering tariffs on both inputs and the finished product.
The effective rate of protection measures the true level of protection received by the value added of a domestic industry, considering not only the tariff on the finished product but also the tariffs on the inputs it uses. A high effective protection rate indicates the industry is more shielded from foreign competition.
Tariff Rate
The percentage or specific amount applied to the customs value of imported goods to calculate the general import tax.
TariffsTariff Escalation
A tariff structure where duties increase progressively with the degree of product processing, protecting domestic manufacturing industry.
TariffsPROSEC Program
A Sectoral Promotion Program that allows importing inputs and machinery at preferential tariff rates for specific industries, without requiring an FTA.
TariffsMost Favored Nation
A WTO principle requiring that any trade advantage granted to one member country must automatically be extended to all other WTO members.