Lowest Average Tariff Rate 2019
Explore countries with the lowest average applied tariff rates, indicating open trade policies and fewer trade barriers.
Interactive Map
Complete Data Rankings
- #1
Palau - #2
Bermuda - #3
Fiji - #4
Saint Kitts and Nevis - #5
Seychelles - #6
Maldives - #7
Bosnia and Herzegovina - #8
Solomon Islands - #9
Saint Lucia - #10
Nauru
Analysis: These countries represent the highest values in this dataset, showcasing significant scale and impact on global statistics.
- #137
China, Macao SAR - #136
China, Hong Kong SAR - #135
Brunei Darussalam - #134
Singapore - #133
Chile - #132
Peru - #131
Laos - #130
Australia - #129
New Zealand - #128
Botswana
Context: These countries or territories have the lowest values, often due to geographic size, administrative status, or specific characteristics.
Analysis & Context
In 2019, the country with the Lowest Average Tariff Rate was China, Macao SAR, with a rate of 0.00%, while the global range extended up to 118.21% in Palau. The global average tariff rate for this year was 7.49%, illustrating a broad spectrum of trade policy openness across the world.
Global Leaders in Trade Openness
The countries with the lowest average tariff rates in 2019 represent diverse geographic regions and economic strategies, yet share a common commitment to open trade policies. China, Macao SAR and China, Hong Kong SAR both reported a tariff rate of 0.00%, underscoring their long-standing roles as global trade hubs. These regions have leveraged their strategic locations and status as special administrative regions of China to maintain minimal trade barriers, fostering international commerce and economic growth.
Meanwhile, Brunei Darussalam and Singapore recorded rates of 0.02% and 0.39% respectively. These countries have adopted low tariff policies as part of broader economic strategies focused on attracting foreign investment and becoming integral parts of global supply chains. For instance, Singapore's minimal tariffs align with its status as a major global port and financial center, facilitating seamless trade flows.
Contrasting Trade Barriers
On the opposite end of the spectrum, countries like Palau and Bermuda reported significantly higher tariff rates of 118.21% and 103.17% respectively. These elevated rates can be attributed to different economic and policy objectives. For smaller island nations, high tariffs are often used to protect nascent industries and generate revenue in the absence of a broad tax base. Similarly, Fiji and Saint Kitts and Nevis have tariff rates of 23.97% and 21.09%, highlighting the use of trade barriers to shield local industries from international competition.
In contrast, larger economies with diverse resources often have the flexibility to maintain lower tariffs. For example, Chile and Australia recorded tariff rates of 0.43% and 0.77% respectively, reflecting their integration into global markets and reliance on exports of natural resources.
Significant Year-over-Year Changes
The year 2019 saw notable shifts in tariff rates for some countries, driven by changes in trade policies and economic conditions. Palau experienced the most substantial increase, with its tariff rate rising by 83.58 percentage points, a 241.4% jump from the previous year. This significant increase could be linked to policy shifts aimed at bolstering domestic industries or addressing fiscal challenges.
Conversely, Solomon Islands reduced its tariff rate by 12.76 percentage points, a decrease of 42.1%. This reduction may reflect efforts to enhance trade competitiveness and integrate more deeply into regional economic frameworks. Similarly, Vietnam decreased its tariff rate by 2.73 percentage points, a move potentially aligned with its commitments to international trade agreements and economic reforms aimed at boosting exports.
Implications of Tariff Policies
The variance in average tariff rates across countries in 2019 underscores differing national priorities and economic strategies. Countries with low tariffs, such as New Zealand and Botswana with rates of 0.91% and 0.96% respectively, often prioritize integration into global trade networks, which can stimulate economic growth and access to a broader range of goods and services.
However, high tariff rates, as seen in Palau and Bermuda, highlight the challenges some nations face in balancing protectionism with openness. These barriers can protect local industries but may also lead to higher consumer costs and reduced competitiveness on the global stage. Understanding these dynamics is crucial for policymakers aiming to optimize trade policies to foster economic resilience and growth.
Frequently Asked Questions About Lowest Average Tariff Rate in 2019
Which country had the lowest average tariff rate in 2019?
China, Macao SAR had the lowest average tariff rate in 2019, with a rate of 0%.
What was the average tariff rate among all countries in the dataset for 2019?
The average tariff rate among all 137 countries in the dataset for 2019 was 7.49%.
What was the median tariff rate in the dataset for 2019?
The median tariff rate in the dataset for 2019 was 4.13%.
Which country had the highest average tariff rate in 2019?
Palau had the highest average tariff rate in 2019, with a rate of 118%.
How many countries had an average tariff rate of 0% in 2019?
Two countries, China, Macao SAR and China, Hong Kong SAR, had an average tariff rate of 0% in 2019.
What is the range of average tariff rates among the top 10 countries with the highest rates in 2019?
The range of average tariff rates among the top 10 countries with the highest rates in 2019 spans from 15.59% to 118%.
Insights by country
Gabon
In 2019, Gabon achieved a global rank of #13 with a Lowest Average Tariff Rate of 14.5%. This rate is notably lower than many of its regional peers in Central Africa, where average tariffs tend to be higher. Gabon's relatively low tariff rate can be attributed to its efforts to promote trade liberalization and diversify its economy, which has historically relied on oil exports.
Lithuania
In 2019, Lithuania ranked #106 globally with a Lowest Average Tariff Rate of 1.84%. This rate is notably lower than many of its European neighbors, reflecting the country's commitment to free trade and integration within the European Union. Lithuania's strategic location as a logistics hub and its policies promoting foreign investment have contributed to maintaining such a competitive tariff rate.
Papua New Guinea
Papua New Guinea ranked #49 globally with a Lowest Average Tariff Rate of 7.75% in 2019. This rate is relatively low compared to many of its Pacific neighbors, reflecting a more open trade policy. The country's tariff structure is influenced by its efforts to diversify its economy beyond natural resource exports, aiming to foster growth in agriculture and manufacturing sectors.
New Zealand
In 2019, New Zealand ranked #129 globally with a Lowest Average Tariff Rate of 0.91 %. This rate is significantly lower than the global average, reflecting New Zealand's commitment to free trade and open markets.
The country benefits from a geographic position that facilitates trade with multiple partners and has established numerous trade agreements, which help to lower tariffs and encourage imports and exports. Additionally, New Zealand's agricultural sector, a major part of its economy, thrives on competitive pricing and access to international markets.
Nepal
Nepal achieved a global rank of #14 with a Lowest Average Tariff Rate of 14.22 % in 2019. This rate is significantly lower than the global average, positioning Nepal favorably in terms of trade competitiveness. The country's low tariff rates can be attributed to its commitment to trade liberalization and efforts to integrate into the global economy, particularly through its membership in the World Trade Organization. Additionally, Nepal's geographical location as a landlocked nation encourages policies that facilitate trade to enhance economic growth.
Niger
Niger achieved a global rank of #36 out of 137 countries with a Lowest Average Tariff Rate of 9.27% in 2019. This rate is relatively low compared to many of its regional neighbors, facilitating trade and economic integration. Key drivers of this low tariff rate include Niger's commitment to regional trade agreements and its reliance on imports for essential goods, which necessitates lower tariffs to support economic stability and growth.
Italy
In 2019, Italy ranked #104 globally with a Lowest Average Tariff Rate of 1.84 %. This rate is relatively low compared to many other European nations, which often have higher tariffs due to various trade agreements. Italy's competitive tariff structure can be attributed to its commitment to the European Union's single market policies, which aim to facilitate free trade among member states.
United Kingdom
The United Kingdom ranked #116 globally with a Lowest Average Tariff Rate of 1.84 % in 2019. This rate is lower than many of its European neighbors, reflecting a commitment to free trade post-Brexit. The UK’s tariff policy is influenced by its efforts to establish independent trade agreements and attract foreign investment, which are crucial for its economy amid changing global trade dynamics.
Mauritania
Mauritania achieved a global rank of #47 out of 137 countries with a Lowest Average Tariff Rate of 8.03 % in 2019. This rate is relatively competitive compared to the global average, indicating a more open trade environment. The country's tariff policy has been shaped by its efforts to diversify the economy, reduce dependence on mining exports, and attract foreign investment, particularly in agriculture and fisheries.
Montenegro
In 2019, Montenegro had the 127th rank for the Lowest Average Tariff Rate, with a value of 0.99 %. This rate is notably lower than many of its regional neighbors, reflecting a more open trade policy compared to countries with higher tariffs. The country's commitment to integrating with the European Union and fostering foreign investments has driven its low tariff rate, aiming to enhance market accessibility and stimulate economic growth.
Data Source
Tariff rate, applied, weighted mean, all products (%) | Data
The World Bank provides a dataset on the applied tariff rates, measured as a weighted mean across all products, for various countries. This data helps analyze trade policies and their impact on international commerce.
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