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 Did you know?
Over the past 20 years, global trade in
goods has nearly quadrupled, reaching
US$ 19 trillion in 2013 compared with
US$ 5 trillion in 1996. This represents
an annual growth rate of 7.6 per cent on
average. Over the same period, there
has been a 15 per cent reduction in
average tariffs applied by WTO members.
 Chart 1: T
 ariffs applied by WTO members and
global trade in goods: 1996-2013

Value of global Average MFN

trade in goods tariffs applied by WTO
(in US$ trillion) members (in %)
20 12

10
15
8

10 6

4
5
2

0 0
96
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
19
19
19
19
20
20
20
20
20
20
20
20
20
20
20
20
20
20

Merchandise trade
Average MFN tariffs

Sources: International Trade Statistics, World Tariff Profiles

9%
Average tariff applied by
WTO members in 2013
“Bound” and applied tariffs

On joining the WTO, new members commit to keep their tariffs beneath a
“bound” level, as specified in their schedules of commitments. But the tariffs they
actually apply can be far lower than these bound rates.
The average tariff applied by WTO members stands at 9 per cent whereas the
average bound rate is as high as 39 per cent. The difference between bound
and applied tariffs is even more marked for developing countries (see Chart 2).
This is because developing countries negotiated much higher ceilings for their
tariffs when joining the WTO. However, the tariffs they have actually applied have
declined by 22 per cent over the past 20 years, far exceeding the global average
decline of 15 per cent.

Chart 2: Bound tariffs and tariffs actually applied by

WTO members
50%

40%

30%

20%

10%
Bound
Applied
0%
All All All Brazil China India
WTO members developed developing

Source: WTO, World Tariff Profiles

Tariff rates applied by WTO members
The tariffs applied by WTO members vary depending on the categories of
goods being imported. Chart 3 shows that over the last ten years or so, tariffs
in the 15-25 per cent range have declined dramatically while tariffs averaging
25 per cent or more have disappeared altogether. The majority of tariffs are in
the 10 to 15 per cent range.
The greatest reduction in tariffs over the last ten years has been recorded
by Mauritius, which has reduced the average rate it applies to goods from
28.5 per cent in 1996 to just 0.8 per cent today, one of the lowest rates in
the world. The only WTO members applying lower tariffs are the “duty-free”
economies of Singapore, Hong Kong (China) and Macao (China), which impose
import duties on only a few agricultural products.

Chart 3: Range of tariffs applied by WTO members

50

Number
of members

25
Duty Free

0<5
5<10

10<15
15<25 0
25<50 1996* 2013*

Source: WTO, World Tariff Profiles.

* or closest available year with data
Case study
Information Technology Agreement

Sectoral agreements, such as the WTO’s Charts 4a and 4b show the top 10
Information Technology Agreement exporters and importers of products
(ITA), have significantly boosted trade covered by the ITA and how the value
by lowering tariffs. Signed in 1996, the of world trade has evolved since 1996.
ITA commits participants to completely The most marked increase has been
eliminate duties on all IT products recorded by China, which has increased
covered by the Agreement. Currently, its exports from US$ 11 billion in
81 WTO members have signed up to 1996 to US$ 549 billion in 2013
this agreement. and the corresponding imports from
US$ 13 billion to US$ 412 billion.
The Agreement obliges the parties to
provide duty-free access not only to Among the top ten exporters/importers
imports from other ITA parties but also of IT products, only Mexico is not
to WTO members that are not party to a member of the ITA. However, the
the Agreement. average tariff it applies to products
Exports of IT products totalled covered by the Agreement is just
US$ 1.5 trillion in 2013, an almost 2.0 per cent, far below its bound rate
fourfold increase since 1996 when the of 35 per cent.
total was US$ 439 billion (see Chart
In July 2015, WTO members concluded
4a). This represents an average annual
negotiations on expanding the number
increase of 8 per cent.
of products covered by the Agreement.
ITA participants account for 97 per cent The new list covers an additional 200
of world trade in products covered by products valued at about US$ 1 trillion
the Agreement. Over the past 18 years, in annual trade.
developing countries’ share in this
trade has grown to almost 60 per cent
compared with just 27 per cent in 1996.
 Chart 4a: Top 10 leading exporters of products covered by
the Information Technology Agreement, 1996-2013
$bn, ranked by 2013 values
600

500

400

300

200

100

0
ina

es

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ga
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Ch

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Ma

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Sin
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Un

Ko
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ext

Chart 4b: Top 10 leading importers of products covered by

the Information Technology Agreement, 1996-2013
$bn, ranked by 2013 values
450

300

150

0
ina

es

tra 28)

re

ese

of

d
co

ysi
pa

ilan
po
tat

p.
Ch

hin

xi
ra- U (

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la
ga

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de

a
dS

Me

Ma

Th
i, C
ext E

Sin

,
ite

rea
pe
Un

Ko
Tai

Source: UN Comtrade database 1996

1 1996: EU (27) 2013
* Non-ITA member
 Conclusions
Global trade in goods has been boosted by the reduction in import
tariffs over the past 20 years. Even when countries have negotiated
high ceilings for their tariffs on joining the WTO, they have consistently
reduced the tariffs they have actually applied to their imports since
becoming a WTO member. In addition, sectoral agreements such as
the Information Technology Agreement have further boosted trade
by obliging its participants to completely eradicate tariffs on products
covered by the Agreement and to offer the same concessions to all other
WTO members. This has helped to further open up trade and to lead to
trade growth.

Further information on trade and tariffs

WTO publications can be purchased from the WTO Online Bookshop and from a
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15 Years of the
ology Agreement Information Technology Agreement
y Agreement (ITA) was finalized at the
Trade, innovation and global production networks
e, in Singapore, in 1996, committing its
minate duties on certain information
ears, the ITA has promoted affordable
ogies, encouraging closer cooperation
ing countries. As production networks
ITA will continue to facilitate the shift
c country to “made in the world”.
of the ITA, this publication charts the
es which were overcome during the
d the issues which still need to be
hment of the ITA Committee and how
and investigates the impact the ITA
and innovation. The publication also
on technology has had on global
this means for developing countries

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12_E.indd 1 27.04.12 12:38

15 Years of the Information International Trade

Technology Agreement: Statistics 2014
World Tariff Profiles 2014
Trade, innovation and global
production networks

WTO Tariff Analysis Online facility WTO Tariff Download Facility

https://tariffanalysis.wto.org http://tariffdata.wto.org