ompression of tariffs, increased binding of tariffs, and favored treatment for environmental goods. These three components may be defined as follows.
Compression: Compression means reducing the range of tariffs, reducing both tariff "peaks" and "escalation." A tariff peak may be characterized as a tariff on one member or subclass of a range of trade goods that is markedly higher than tariffs on the broader range of similar range. An example given (perhaps hypothetical) of a tariff peak would be a tariff of 50 percent on imports of cotton textiles, where tariffs on textile imports in general are only 5 percent ("Market Access" 1). Such peaks are generally designed to favor a particular domestic industry; in the example above, the protected industry is by implication cotton production.
"Escalation" refers to a tariff schedule in which higher tariffs are charged against goods that embody greater value added -- for example, a higher tariff on candy
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