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Handbook of Trade Policy for Development$
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Arvid Lukauskas, Robert M. Stern, and Gianni Zanini

Print publication date: 2013

Print ISBN-13: 9780199680405

Published to Oxford Scholarship Online: January 2014

DOI: 10.1093/acprof:oso/9780199680405.001.0001

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Protective Regimes and Trade Reform

Protective Regimes and Trade Reform

Chapter:
(p.301) Chapter 10 Protective Regimes and Trade Reform
Source:
Handbook of Trade Policy for Development
Author(s):

Wendy E. Takacs

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780199680405.003.0010

Wendy Takacs analyses protective trade regimes and their reform. Governments implement a variety of overlapping and often contradictory trade-related measures to promote particular industrial sectors. Takacs examines some of the most commonly used instruments: export controls on raw material inputs, domestic content requirements, barriers to imports, and compensatory export requirements. These measures alter the effective rate of protection for different sectors and thereby influence the allocation of national resources and economic benefits. She illustrates the consequences of export controls through a case study of raw cashmere in Mongolia and the effects of domestic content requirements and compensatory export restrictions in conjunction with import barriers for final goods in the Philippine automobile industry. Understanding how the various components of a complicated protective regime interact is critical for designing a successful reform program otherwise it may lead to unintentional increases or reductions in the effective rate of protection for particular activities.

Keywords:   Export controls, domestic content requirements, compensatory export requirements, effective rate of protection, case study, Mongolia, Philippines, reform, trade

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