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How large is the bias against exports from import tariffs?



One goal that both developed and developing countries share is to increase their export earnings. To do this, countries sometimes resort to various export promotion schemes or request ‘special and differential treatment’ for their exports. However, countries have not fully embraced the notion that their own import tariffs act as a tax on their exports. That is, import protection frustrates their goal of increasing exports. This paper presents quantitative estimates of the extent to which import tariffs discourage exports. The results show that for some countries the bias imparted by tariffs is substantial. Therefore, reducing import tariffs is one way to improve export incentives.



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How large is the bias against exports from import tariffs?



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