Table 3. Tariff Bound Lines and Total Overhang

||Shar<br>Tariff B<br>Lines|e of<br>ound<br> (%)|Tot<br>Overh<br>(%|al<br>ang<br>)|
|---|---|---|---|---|
|Country|Value|Rank|Value|Rank|
|Armenia|100|1|5.25|49|
|Georgia|100|1|6.12|52|
|Moldova|100|1|2.26|40|
|Ukraine|100|1|1.26|36|
|Kyrgyz Republic|99.9|83|2.87|41|
|Tajikistan|0|152|..|..|
|Uzbekistan|0|152|..|..|

Note: “.”: no data. Number of countries ranked: 164 (TBL) and 150 (TO). Source: World Trade Indicators (2012).

# **Tariffs in East Asia and the Pacific and the European Union**

Tariffs in EAP seem to be, with the exception of Japan, higher than in Eurasian countries. China’s simple average MFN tariff is 9.289% and Korea’s is 10.284% (Table 4). The highest level of protection in China is observed in products such as rice, barley, wheat, or meslin flour, with tariffs of 65%. Trade barriers in products that are imported from Eurasian countries, i.e., petroleum oils and oils obtained from bituminous minerals, raw hides and skins, and iron ores and concentrates, are minor. In the majority of the cases, these products have no import duty. Korea’s protection is concentrated in buckwheat, millet, and canary seed (tariffs of 800.3%), starches and inulin (tariffs of 747%), and manioc, arrowroot, salep, and sweet potatoes (tariffs of 630%).

Indonesia shows intermediate levels of protection as its applied MFN tariff is 6.87%. The country’s tariff barriers are mainly focused on goods like mixtures of odoriferous substances, cigars, and motor vehicles principally designed for the transport of persons, which have tariffs of 101.67%, 40%, and 40%, respectively. Similar to China and Korea, imports of petroleum and semi-finished products of iron or non-alloy steel, which come from Eurasian economies, are duty-free. The lowest level of protection is observed in Japan, with an applied MFN tariff of 3.24%. Trade policy barriers are high in products such as sugars (tariffs of 43.27%), and cheese and curd (tariffs of 40%). Eurasia’s exports to Japan, mainly of petroleum and unwrought aluminum, pay tariffs that do not exceed 1.32%. The effectively applied tariffs are, by definition, lower than the MFN applied tariffs as a result of PTAs. Concessions related to PTAs seem to be relatively more important in Indonesia and China.

Table 4. MFN Applied Tariff and Applied Tariff Including Preferences

||<br>**Applied In**|<br>**cluding Pref.**|<br>**MFN**|<br>**applied**|
|---|---|---|---|---|
|**Country**|**Simple Av.(%) **|**Weighted Av.(%) **|**Simple Av.(%) **|**Weighted Av.(%)**|
|China|7.649|3.469|9.289|4.089|
|Indonesia|4.742|2.358|6.876|5.193|
|Japon|2.534|1.511|3.204|1.833|
|Korea|10.084|7.832|10.284|7.949|

Source: Authors’ calculations using data from UNCTAD accessed through WITS (2012).

The TTRI and OTRI show intermediate levels of protection in relative terms for China, Indonesia, and Malaysia. The equivalent uniform tariffs excluding NTMs are 5.06%, 4.47%, and 3.01%, respectively, ranking the countries in positions 68<sup>th</sup> , 62<sup>nd</sup> , and 45<sup>th</sup> (out of 125 countries), respectively. If we compare the TTRI with the OTRI rates, we observe that the latter are larger than the former, highlighting the fact that NTMs are important. For example, China’s equivalent uniform tariff increases from 5.06% to 9.83% 6