Nulltariffer

Nulltariffer is a term used in economics and policy discussions to describe a tariff regime in which duties on most goods traded between member jurisdictions are set to zero. The concept is central to many regional trade agreements and customs unions, where zero tariffs are used to promote deeper economic integration and market access.

In practice, nulltariffer regimes specify schedules of tariff elimination. Tariff removal may be complete for the majority of goods, while certain sensitive products—such as some agricultural commodities, textiles, or strategic sectors—may retain tariffs or be subject to phased reductions. Rules of origin are typically required to prevent tariff circumvention and to ensure that tariff benefits accrue to genuine producers within the pact. Temporary safeguard measures may also be allowed if imports surge and threaten domestic industries.

Rationale for nulltariffer includes lower input costs for firms, expanded consumer choices, increased competition, and stronger cross-border investment and supply chains. Proponents argue that zero tariffs raise overall welfare by enhancing efficiency and growth, especially in integrated regional markets.

Critics highlight potential revenue losses for governments, protection concerns for infant or declining industries, and risks of trade diversion where imports shift away from more efficient producers outside the regime. Effective implementation often depends on clear rules of origin, enforcement mechanisms, and accompanying policies such as industrial adaptation programs or social safeguards.

Examples of zero-tariff practices can be found in many regional agreements, including the intra-regional zero-tariff environment of the European Union and broader efforts under frameworks like the African Continental Free Trade Area to eliminate tariffs on a large share of traded goods. See also Tariff, Free trade agreement, Customs union.