Convention Rates

tariff rates worked out by the conclusion of an agreement (contract, convention) among states. Convention rates cannot be changed during the effective period of the contract. The rates are given in specific sections of modern tariff schedules. They began to be used in trade relations between capitalist states in the 1860’s. As monopoly capital grew and the struggle among particular capitalist states and groups of states became sharper, tariff conventions developed as a form of multilateral trade agreement to regulate tariffs and became part of the practice of international relations. The General Agreement on Tariffs and Trade (GATT), which has been in effect since 1948, is an example of a multilateral tariff convention.