Reducing Tariff Wall
Basically, the issue of tariff is a moral and economic one. But no one could deny that it is also a political issue. When governments use tariff as an instrument to influence or restrain other governments, the field of international politics and intrigue is entered. If history offers any basis for judgment on this subject, it is that economics and morality are cast aside at such times.
Nowadays the tariff wall is restricted what is important for the development of "Global Village".
- The foundation of EU, which strongly sparks plug free trade.
- WTO thought tariff wall may cause global economic decline thus it made specific statement of restriction of tariff wall.
- The requirements of economic development. Tariff is different from tariff wall. Normal tariff could protect domestic market but tariff wall that means high import duties impedes normal commodity exchange.
- The development of homeland industry needs foreign competition. Otherwise, it would lack enough competitive advantage in the foreign market.
- Domestic customers need more choices and more wonderful merchandises according to their increasing life quality.
- Too much protection of domestic economy and industry in certain countries.
- Trade discrimination to certain countries.
It isnâ€™t necessary for all nations to agree jointly and simultaneously to remove restrictions. If only one nation does it, some good is accomplishedâ€”both for itself and for its customers. A great nation could do it and thus set an example for others to follow. It would not be meddling in the affairs of other nations; it would merely be looking after the best interests of its own citizens. And instead of being resentful, other nations would be eternally grateful.
WTO (World Trade Organization)
Non-tariff wall is more utilized to replace tariff wall to protect domestic market by some countries nowadays. Together with restriction of WTO and more requirements of free trade in most countries, tariff wall would be less applied.