GATT Violations Through Tariff Escalation In Developing Countries

Abstract

This research explores the implications of tariff escalation on developing countries within the framework of the General Agreement on Tariffs and Trade (GATT). While GATT aimed to promote trade liberalization and reduce barriers, the persistent practice of tariff escalation has disproportionately affected developing nations, hindering their access to developed markets. Tariff escalation occurs when countries impose higher tariffs on processed goods than on raw materials, discouraging value addition and industrial development in poorer nations. This paper analyzes about the tariff escalation, the background of GATT and Trade Liberalization, and its impact on developing economies. Through a comprehensive review of literature, and analyzing the methodology, the research investigates how tariff escalation disproportionately affects developing countries, stifling their ability to move up the value chain and hindering economic diversification.