LEARNING OBJECTIVES

By the end of this section, you will be able to:

• Explain tariffs as barriers to trade

•

Identify at least two benefits of reducing barriers to international trade

Tariffs are taxes that governments place on imported goods for a variety of reasons. Some of these reasons

include protecting sensitive industries, for humanitarian reasons, and protecting against dumping.
Traditionally, tariffs were used simply as a political tool to protect certain vested economic, social, and cultural

interests. The World Trade Organization (WTO) is committed to lowering barriers to trade. The world’s nations

meet through the WTO to negotiate how they can reduce barriers to trade, such as tariffs. WTO negotiations

happen in “rounds,” where all countries negotiate one agreement to encourage trade, take a year or two off,

and then start negotiating a new agreement. The current round of negotiations is called the Doha Round
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