ACCELERATED TARIFF ELIMINATION Meaning and
Definition
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Accelerated tariff elimination refers to a trade policy approach that aims to expedite the process of reducing or eliminating tariffs on imported goods and services. Tariffs are taxes or duties imposed on imported goods by a country's government, which can increase their price and make them less competitive in the domestic market. Accelerated tariff elimination seeks to remove these barriers to international trade by implementing a faster timeline for reducing or eliminating tariffs.
This policy is typically implemented through bilateral or multilateral trade agreements. Countries involved in these agreements agree to gradually lower or completely remove tariffs on each other's goods and services. The accelerated aspect of this approach means that the process of tariff reduction or elimination is expedited and occurs more rapidly than under conventional trade agreements.
The objective of accelerated tariff elimination is to enhance the flow of international trade and promote economic integration between countries. By reducing tariffs, the cost of imported goods is reduced, making them more affordable for domestic consumers. It also encourages foreign exporters to compete in the domestic market, which can lead to increased market access, a broader variety of products, and greater competition, all of which can stimulate economic growth.
Accelerated tariff elimination is often seen as a method to encourage open markets, foster international cooperation, and enhance the overall global trading system.
