Types of Tariffs

September 18th, 2018

Under WTO rules, while a WTO member can raise its applied tariff to the bound tariff, it cannot apply different tariffs against different countries. In the absence of an FTA, the same tariff rate must be applied against all WTO members. In other words, each member qualifies for the best rate on offer, or the MFN rate. If bound tariffs apply to one partner, they apply to all.