1. Trade restrictions and trade policy
Chapter 5

2. Learning objectives The prevalence of trade protection
The various types of protectionist measures
The welfare consequences of trade restrictions
Why it is difficult to eliminate trade protection in practice

3. Figure 5.1 Worldwide applied tariff rate, 1988-2010
Source: World Development Indicators online; applied tariff rate, weighted mean, all products. Applied rates are rates that are actually used and differ from those that are allowed (these are the so-called bound rates, which are usually higher than the applied tariff rates)

4. Figure 5.2 USA average tariffs, 1820–2010
Total tariff revenue/total imports; from : weighted average applied tariff (all goods)

5. Figure 5.3 Applied tariff rate; simple mean, all products, 2010
Source: World Bank eAtlas of Global Development; 2010 or latest available.

6. Figure 5.4 Domestic welfare effects of imposing a tariff

7. Figure 5.5 The world welfare effects of a tariff

9. Figure 5.6 ‘Predicted’ duration of the Doha round
Source: Neary (2004); Note, that Doha is becoming an outlier. The predicted duration is below the actual duration; its 10th anniversary was in November Data source: See table 5.1.

10. Figure 5.7 Customs union: trade creation

11. Figure 5.8 Customs union: trade creation and diversion

14. Figure 5.9 Additional trade costs of NTM measures in EU-US trade; 2010, percent
Source: Berden et al. (2010); sectors sorted by average additional trade costs.