Tradeflow Study - UNDP Black Sea Trade and Investment Promotion ...

Maximum MFN in Region (%)
.
make cross country comparisons. This can sometimes lead to different ad valorem equivalent
tariffs despite the fact that two countries may apply the exact same specific tariff but to
different valued goods. In Figure 4, alcohol is subject to a maximum tariff rate of around 600
percent for one country in BSEC (Ukraine) while it only is subject to a tariff rate of 3 percent in
Turkey. In this case, and in the event that tariffs between Turkey and Ukraine are nil (as
expected in a free trade area), one would expect it to be highly beneficial for Turkey to supply
the Ukrainian market since it benefits from a 600 percent preferential margin over countries
with which Ukraine has not signed a free trade agreement.
Figure 4. Selection of tariff Peaks in the BSEC Region, 2006
700
600
Undenatured ethyl
alcohol
Denatured ethyl alcohol
500
400
Wine
300
200
100
Frozen hams
Beer
Raw cane sugar
Raw beet sugar
Frozen cuts of turkeys
Frozen meat of swine
Cuts of turkeys
Cuts of fowls
Milk fats
Cane or beet sugar
Meat of ducks/geese
0
0 2 4 6 8 10 12 14 16
Minimum MFN in Region (%)
Source: ITC MacMaps
Table 12 has listed the principal products at the HS6 digit level which are subject to tariff
peaks. These include primarily meats and agricultural produce. Armenia and Albania tend to
have the lowest tariff rates in these selected products (which range from 0-15 percent) while
Turkey, Ukraine, Romania and Bulgaria have a significant number of peaks (ranging from 60
to 581 percent).
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