FTA :

• AFTA
• CAFTA
• EXCISE TAX
• TARIFF TAX

Tariff And The Government

      There are several reasons for the government to impose tariffs. In fact, many economists today agree that tariffs are much better for the people and the general economy of a country. Here are some of the reasons why a government imposes tariffs. More..

A tariff is a type of tax put as an import or export duty on the goods that are being shipped in and out of the country. A tariff helps the government of a country in several ways. Today, the United States plays a very important and a big role in the shipping industry. Products from all over the world are being shipped into the country. The United States is also exporting a considerable amount of products to other countries.

Not all countries are open to free trade. Different countries have different tariff plans. Some countries do not export essential commodities. For example, rice and oil are essential commodities for some countries and they are not exported.

The United States has been trying to eliminate trade barriers by signing free trade agreements with several groups of countries. However, today, they have only one effective and successful trade pact between Canada and Mexico, and that is called the NAFTA. The US has even signed the CAFTA in coalition with Central American countries. Now they are negotiating trade pacts with several other countries like Brussels, Middle East, countries in the Far East and countries in South America. This is being done mainly because the United States wants to remove all tariff barriers and gain free trade entry into several countries.

Presently, the United States has no tariff barriers with the following countries:

• Mexico
• Canada
• Dominican Republic
• Nicaragua
• Guatemala
• Honduras
• El Salvador

More Articles :

• How Do Tariffs Help The United States ?
• List Of Harmonized Tariff Codes
• Tariff And Non Tariff Barriers Between Countries
• Tariff And The Government
• Tariff Vs Duty
• What Are The Pros And Cons Of Tariffs ?