International Trade Tariffs

Although international trade exists across the world, imports and exports are regulated by quotas and mandates from each country’s customs authority......
 
The importing nation may impose a tariff – a tax – on certain products.

 
Some markets have special trade deals which list what goods may be freely traded, and which ones are restricted.

 
The European Union has 27 member states which can trade freely with each other – there are no tariffs or quotas. On June 23rd, 2016, the British electorate voted in a referendum to leave the European Union (EU). The UK now has two options: pursue a Hard or Soft Brexit (BRitain EXITing the EU).

 
With a Soft Brexit, the UK would still have unfettered access to the EU’s 500 million consumers but would have to sign up to the free movement of people. With a Hard Brexit, the country would regain total control of its borders but would lose free access to the market. Tariffs on goods exported to the EU would be between 10% and 20% with a Hard Brexit.

 
NAFTA (North American Free Trade Agreement) consists of three countries – the USA, Canada and Mexico – which also trade freely with each other.

 
The Global System of Trade Preferences (GSTP) is a preferential trade agreement between emerging economies and LDCs. LDC stands for Less Developed Country. In most cases, the agreements involve either lifting or reducing tariffs. However, the LDC member nations do not have to reciprocate.

 
A country that does not import or export goods and services is an autarky.