Duty-free quota-free market access
Also called: DFQF · Topic: International Trade Policy, WTO and Intellectual Property · NCERT: Beyond NCERT
Meaning
Duty-free quota-free (DFQF) market access is an arrangement where a country lets imports from least developed countries (LDCs) in with no tariffs and no quantity limits. It is non-reciprocal: LDCs do not have to open their markets in return. The aim is to help the poorest countries earn through exports. It is a permitted exception to the WTO's most-favoured-nation (MFN) rule, which normally requires equal treatment of all members.
Example
India's Duty-Free Tariff Preference (DFTP) scheme (2008) gives LDCs duty-free access on about 98% of India's tariff lines.
Don't confuse with
- Generalised System of Preferences (GSP): GSP gives lower or zero tariffs to developing countries more broadly. Coverage and quantity limits can vary. DFQF targets only LDCs.
- Free trade agreement (FTA): an FTA is reciprocal, with both sides cutting tariffs. DFQF is one-way.
Related concepts
- Multilateral trade agreements
- Rule-based trading regime
- Multilateralism
- Plurilateral agreement
- Non-discrimination principle
- Most-favoured-nation principle
- National treatment
- Exceptions to MFN
- Enabling clause
- Generalised System of Preferences