What is the purpose of a specific duty in international trade?

The purpose of a specific duty in international trade is to regulate the quantity of goods imported into a country. A specific duty is a type of tariff that is levied as a fixed fee per unit of the imported goods, rather than as a percentage of the value of the goods. By imposing a specific duty, governments can effectively control the volume of certain products entering the market, thus influencing domestic supply and demand dynamics.

This mechanism serves various objectives, including protecting local industries from excessive competition, ensuring that import levels do not adversely affect local markets, and sometimes even generating revenue for the government. By setting a specific amount that must be paid per unit, it creates a financial disincentive for importing larger quantities, leading to tighter regulation of how much can be brought into the country.

In contrast, enhancing product labeling requirements, limiting government procurement, or imposing safety standards primarily focus on different aspects of trade and do not directly relate to the mechanism of quantifying imported goods.