Sunday, November 18, 2018

Of tariffs and protectionism

Came across this simple yet effective explanation of what tariffs are to understand the present debate on tariffs and protectionism in this piece titled "What is a tariff anyway?" in DevelopTradeLaw by Andrea

The three seemingly simple goals of tariffs - raising revenue, protecting domestic industry and social/health policy objectives - are implemented worldwide. Their extent and impact differ based on a country's developmental status and trade policy.

But is a tariff per se protectionist or tariffs beyond WTO commitments protectionist is a debatable question. Using policy space available under international trade agreements though intuitively protectionist may require a more nuanced understanding.

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