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Main policy areas
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Remarks
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General
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- Hides and skins and leather are not covered under the AoA, although
the AoA has indirect implications for the sector through its implications
for meat and dairy policies. These products and leather are covered
under the general provisions of the GATT.
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Tariffs
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- No import tariffs are applied to raw hides and skins;
- Tariff escalation is an issue for leather and leather products as
import tariffs vary according the level of processing; i.e. finished
leather, leather bags, leather shoes etc. carry high tariffs in some
countries. In developed countries the weighted average is about 5 percent
for leather, 8 percent for leather products and as high as 80 percent
for leather footwear. Quotas are occasionally introduced.
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Export subsidies
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- Direct export subsidies/refunds are hardly used in the sector.
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Export restrictions and prohibitions
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- Export prohibitions, export taxes and combinations are used in a
number of developing countries;
- Restrictions on export of raw hides and skin, wet blue and crust,
are typically imposed in order to assist the development of the domestic
tanning and leather manufacturing industries. By increasing domestic
supply within the country local tanneries have lower cost, investment
in processing and manufacturing becomes more profitable. However the
lower prices reduce the incentive to supply good quality material.
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Food security
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- Provides income for processors and is a source of employment in tanning
and manufacturing.
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Environmental measures
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- Tanning industry can be highly polluting;
- The cost of meeting environmental standards is one reason for shift
of activity from developed to developing countries;
- Discussion of a proposal for an industry-wide international ecolabelling
scheme has not borne fruit.
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Rural development
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Safeguard measures
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