The Bound tariff rate is the most-favored-nation tariff rate resulting from negotiations underthe General Agreement on Tariffs and Trade (GATT) and incorporated as an integralcomponent of a country’s schedule of concessions or commitments to other World Trade Organization members. If a country raises a tariff to a higher level than its bound rate, thoseadversely affected can seek remedy through the dispute settlement process and may obtainthe right to retaliate against an equivalent value of the offending country’s exports or theright to receive compensation, usually in the form of reduced tariffs on other products theyexport to the offending country.