1. PROTECTION TYPES AND IMPACT TARIFF……….TAX OR CHARGE ON AN IMPORTED PRODUCT….CAN BE SPECIFIC…….MONETARY AMOUNT PER ITEM…..€10 ……….OR AD VALOREM…% OF VALUE COULD ALSO BE EXPORT TARIFFS BUT OUR CONCERN IS WITH IMPORT TARIFFS

2. MAIN AIM OF A TARIFF IS TO RAISE THE PRICE OF THE IMPORT IN THE DOMESTIC MARKET AND REDUCE ITS COMPETITIVENESS…………..THIS LOWERS OR ELIMINATES THE IMPORTS BUT….EXPORTING COUNTRY COULD ABSORB THE IMPACT OF THE TARIFF ( or part of it) TO MAINTAIN DOMESTIC MARKET SHARE TARIFF REDUCES MARKET ACCESS BUT DOES NOT NECESSARILY ELIMINATE IT

3. QUOTA…..GENERALLY REGARDED AS A MORE PROTECTIONIST MEASURE QUOTA CAN NOT BE ABSORBED BY THE EXPORTER QUOTA IS A LIMIT ON THE AMOUNT OF THE IMPORTS……LIMIT ON QUANTITY……5K CARS, 10K COMPUTERS….OR LIMIT ON VALUE……€5M WORTH OF IMPORTS

4. RESTRICTION OF IMPORTED SUPPLY REDUCES SUPPLY ON THE DOMESTIC MARKET AND PUSHES UP PRICE. EXPORTER CAN NOT ABSORB THE QUOTA….IT DOES NOT MATTER HOW THEIR EFFICIENCY INCREASES THE LIMIT REMAINS…..HENCE IT IS MORE RESTRICTIONIST THAN A TARIFF IN TERMS OF FREE TRADE REMOVAL OF QUOTAS WOULD BE MORE IMPORTANT THAN REMOVAL/REDUCTION OF TARIFFS

5. OTHER FORMS OF PROTECTION….SUBSIDIES TO DOMESTICPRODUCERS PARTICULAR TAX REGIMES…..NO TAX ON BEER….BIG TAX ON WINE RULES ON ELIGIBILITY TO DO BUSINESS……..TO SELL INSURANCE THERE MUST BE A DOMESTIC OFFICE PRESENCE

6. TECHNICAL STANDARDS AND BARRIERS RECOGNITION OF SKILL QUALIFICATIONS VOLUNTARY EXPORT RESTRAINTS DUMPING GENERALLY CLASSIFICATION IS TARIFFS AND NONTARIFF BARRIERS NON TARIFF BARRIERS ARE ALL THE REST

7. NOMINAL TARIFF……TAX/CHARGE ON IMPORTED ITEM…€10 PER ITEM OR 10% RATE OF EFFECTIVE PROTECTION….THE DEGREE OF PROTECTION OR SUPPORT GIVEN BY THE TARIFF TO DOMESTIC PRODUCERS EXAMPLE…SUPPOSE COTTON IMPORTED WITHOUT TARIFF TO PROMOTE DOMESTIC CLOTH PRODUCTION CLOTHES OMPORTS HAS A 10% TARIFF

8. NOMINAL TARIFF IMPORTANT TO CONSUMERS BECAUSE PRICE RISES EFFECTIVE TARIFF IS IMPORTANT TO DOMESTIC PRODUCERS BECAUSE IT INDICATES THE DEGREE OF PROTECTION/SUPPORT FOR DOMESTIC PRODUCERS ASSUME €80 OF IMPORTED COTTON GOES INTO THE DONESTIC PRODUCTION OF A SUIT

9. FREE TRADE PRICE OF A SUIT IS €100 AND THERE IS A NOMINAL TARIFF OF 10% PRICE OF SUIT TO DOMESTIC CONSUMERS IS €110, COMPRISED OF€80 WORTH OF IMPORTED COTTON 20 OF EXPORTER VALUE ADDED AND 10 TARIFF. DOMESTIC PRODUCERS CAN COMPLETE IF THEY REQUIRE €30 TO PROCESS THE COTTON THE FFECTIVE PROTCTION THEY ARE GETTING IS €10 RELATIVE TO THEIR DOMESTIC COSTS OF PRODUCTION OF €30 OR RELATIVE TO THE €20 OF FOREIGN COSTS DOMESTIC PRODUCERS CAN BE 50% MORE INEFFICIENT THAN FOREIGN PRODUCERS AND STILL COMPETE BECAUSE OF THE TARIFFF OF 10%

10. EFFECTIVE PROTECTION REFERS TO THE PROTECTION OF THE DOMESTIC VALUE ADDED PAGE 217 SALVATORE FOR DIFFERENCES BETWEEN NOMINAL AND EFFECTIVE RATES OF PROTECTION NOMINAL TARIFFS MASK THE ACTUAL DEGREE OF INEFFICENCY THAT IS SUPPORTED CASCADING TARIFF STRUCTURES

11. LOW OR ZERO TARIFFS ON RAW MATERIALS AND HIGHER RATES AS LEVEL OF PROCESSING INCREASES IMPACT OF A TARIFF INCREASES DOMESTIC COSTS AS ECONOMY DOES NOT HAVE ACCESS TO THE LOWER WORLD PRICES REDUCES COMPETITIVENESS AND MAY REDUCE EXPORTS

12. PROTECT BASIC AGRICULTURAL MACHINERY AND INPUTS DOMESTIC PRODUCTION….COST TO AGRICULTURE INCREASES AND EXPORTS LESS COMPETITIVE ASSESSMENT OF IMPACT OF TARIFF AND QUOTA ARGUMENTS FOR PROTECTION INFANT INDUSTRY, STRATEGIC TRADE POLICY, TIME LAGS, CULTURE, STRATEGIC SECTORS