The Role of Preferential Tariffs in the Integrity of the Tariff Regime in the WTO

دانشنامه حقوق اقتصادی

Article 2, Volume 26, Issue 15, July 2019, Pages 33-54   

Document Type: Scientific research

DOI: 10.22067/le.v26i16.67120

Authors

mohammad habibi majande; HOSSEIN Esmaeilbasad^*

mofid university

Abstract

Introduction
Historical and contemporary evidence shows that for technologically backward countries, development without commercial support (where tariffs are the main pillar) and subsidies, if not impossible, will prove difficult. Trade liberalization only works well if it is gradually selected as part of a long-term industrialization policy. Almost all of today's developed countries have organized their economies through the use of tariffs and subsidies in the nineteenth and twentieth centuries and after years of continuous efforts and pursuit by developing countries to adjust for economic inequality, and in particular by addressing the issue. UN-affiliated institutions and assemblies, including the United Nations Conference on Trade and Development (UNCTAD), have agreed that the world's industrialized nations should reduce discrimination in international trade, as well as provide an opportunity for other nations to increase foreign trade and increase their share. They trade in commodities and commodities exported to developing countries Expanded and less developed, take advantage of bilateral and mutual concessions in the Doha Round, thereby enabling the developing world to market their exported goods and products more readily to industrialized countries. The first step taken in this regard is the creation of a "general system of preferences", which has been established in collaboration with and under the support of UNCTAD. Under such arrangements, most industrialized countries, including EU members, favored many of the goods and products manufactured in developing countries.
Such tariffs are usually lower than the full tariffs, and in addition to these arrangements, developing country groups in the developed countries market have better competitiveness and are also encouraged to importers. To meet their import needs from developing countries on equal footing, that is, to create conditions of competition and economic flexibility. This initiative, aimed at empowering production and quality improvement in developing countries, has goals in the WTO system of preferences. Preferential trade agreement is the mildest type of economic convergence that the signatory countries agree to impose preferential tariff rates on imports of each other, which is necessarily accompanied by trade liberalization and discrimination against third parties. In the four paragraphs of this article, we first analyze the reasons for preferential tariffs and the WTO's attention to them, and in the second paragraph, we consider trade liberalization, which is one of the main goals of the WTO in the light of the use of preferential tariffs. Paragraph 3 also assesses the necessity of tariff system integration in developing countries and, in paragraph 4, outlines the new and qualitative criteria to be applied in tariff system integration using preferential tariffs. We have made a decision.
Methodology
The research is descriptive-analytical.
Conclusions & Suggestions
In the discussion of this paper, we examined the impact of preferential tariff agreements on the integration of WTO tariff systems, and although trade tariffs may be due to preferential tariffs among economic blocs, diversion of trade between countries is generally possible. It has been proven that it will lead to the creation and development of commerce and industry and, in the short and long term, will require countries to comply with the principle of good national behavior, and in particular the full ethics of all nations but the WTO empowerment clause, as prescribed by the General System of Preferences and Customs Unions, should be followed by careful monitoring and setting the initial rates for negotiating membership or issuing harmonized customs codes at the time of the announcement of the preferential tariff agreement and timetable for The gradual liberalization of trade will support the industries that support it. However, according to the rules of origin, the use of preferential tariffs for bilateral and multilateral trade is to some extent seen with the allocation of at least 40% in WTO and bilateral or multilateral and regional regulations and are emphasized the stages of producing a commodity for trade between the countries of an economic bloc, but in order to integrate tariffs, in a notice board and a regulatory plan by the organization, this minimum participation rate of 40% must be established by creating a mechanism. In the medium term, up to 60%. The research findings also show that the creation of free trade and customs zones and the reduction of tariffs by signing preferential trade agreements will increase the volume of intra-group trade, exports and imports, as well as welfare effects for members.
The research findings also show that creating free trade and customs zones and reducing tariffs through preferential trade agreements will increase the volume of intra-group trade, exports and imports as well as bring benefits to members. so:
(A) The WTO, in order to achieve the goals of the Doha Round, and reduce tariffs, must provide the conditions necessary for the empowerment of southern countries through the transfer of technology to industrialized countries.
(B) Subject to the provisions of Article 24 of the GATT Agreement, States Parties to the Regional Blocs shall, for the purpose of integrating and integrating their internal tariffs into the World Trade System, provide a means other than to establish a timetable for reducing tariffs and moving towards the establishment of a free zone; They do not have trade, and through which regional institutions act as a gateway to the WTO and free trade.
(C) The industrialized nations, in accordance with the rules of the organization, apply the general system of preferences and tariff agreements to political pressure and to accompany developing countries (not for commercial liberalization and tariff integration) and in return for their markets. Providing them with exports and heavily using the WTO's more powerful means of restraining exports to those countries for reasons such as dumping, support tariffs and subsidies in the agricultural sector, the EU is a prominent example.
(D) The World Trade Organization shall set the basic tariff rate for the member countries and the negotiation process in relation to the different categories of harmonized codes and its relative and absolute advantage in the production of goods and shall be monitored more closely by the developing countries. The supplier of the rules of origin with at least 40% of the production process of the product reaches to over 60% with a 10-year and 25-year long-term plan to achieve the goal of liberalizing and integrating tariff rates within the organization.
 

Keywords

Preferential Tariff Agreement; Integration of tariffs; WTO; trade liberalization

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