TeachMeFinance.com - explain Bound tariff rate
Bound tariff rate The term 'Bound tariff rate ' as it applies to the area of agriculture can be defined as ' The most-favored-nation tariff rate resulting from negotiations under the General Agreement on Tariffs and Trade (GATT) and incorporated as an integral component of a country’s schedule of concessions or commitments to other WTO members. If a GATT contracting party raises a tariff to a higher level than its bound rate, the country or countries adversely affected have the right under GATT to retaliate against an equivalent value of the offending country’s exports or to receive compensation, usually in the form of reduced tariffs on other products they export to the offending country'.
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