DairyCo

Import Tariffs

Published 28 November 03

Import Tariffs

Import tariffs are a tool used by countries to make another countries goods more expensive to its consumers, in order to protect a domestic industry. Tariff levels are set at a rate that adds a large amount to the cost of an imported product. Tariff levels are set by agreement within the World Trade Organisation, and are currently being reviewed.

The last WTO agreement set three types of tariffs: Market access tariffs - the general level of tariff, open to any amount of product; minimum access/tariff rate quotas - a fixed amount of product (quota) that could be imported at a lower rate of tariff than under the market access tariff; current access tariffs are again fixed quotas of products at lower rates of tariff, but specifically attached to certain countries that have historical trading links with the EU. In the dairy sector the tariff rate quotas equated to 2% of EU consumption, and the current access quotas to around 3% of EU consumption.

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