Transcript Tarife Dışı Araçlar

INTERNATIONAL TRADE POLICY

Free trade maximizes world output and
benefits all nations but all nations impose
some restrictions on the free flow of
international trade.


Tariffs
Non-tariff trade barriers
TARIFFS
Easily applied
 Most common tool
 Mostly taken from imports
 GATT tries to decrease the rates

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Turkey
USA
S.Korea
: 8% (1999)
: 4,1% (2000)
: 7,5% (2000)
TARIFFS

A tariff is a tax or duty levied on the
traded commodity as it crosses a national
boundary.
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Aim:

To raise revenue for the government

Protection of domestic industries

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Partial protection
Prohibitive tariff
TARIFFS
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Specific: Fixed sum per physical unit of
the traded commodity.
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Ad valorem (FOB, CIF): Fixed percentage
of the value of the traded commodity.
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Compound: Combination of ad valorem
and specific tariff.
TARIFFS: Effects

Production effect
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Domestic production increases
Provides protection
Consumption effect

Consumption decreases
TARIFFS: Effects
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Foreign trade effect
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Revenue effect
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Imports fall
Government tax revenue increases
Income distribution effect
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Income transfer from consumers to producers
Consumer and producer surpluses
TARIFFS: Effects
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Macroeconomic Effects:
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Balance of payments

National income

Terms of trade

Income distribution
Effective Protection

How much protection is actually provided
to the domestic processing of the importcompeting commodity.

g=(tj-ai.ti)/(1-ai)
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g: rate of effective protection to producers of
the final commodity.
t: nominal tariff rate of final commodity
ai: cost of imported input/price of final
commodity before tariff
ti: nominal tariff rate on the imported input
Special Trade Regimes
1. Temporary imports and exports
 2. Entrepot
 3. Transit Transportation


1959 Geneva TIR (Transit International Router) Agreement
4. Border and coastal trade
 5. Free imports
 6. Free zone
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NON-TARIFF TRADE BARRIERS

A. Quantitative Restrictions
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B. Foreign Exchange Restrictions
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C. New Protectionism
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D. Export and Import Taxes
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E. Monopolies and Cartels
A. Quantitative Restrictions

Import Quotas

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An import quota is a direct quantitative
restriction on the amount of a commodity
allowed to be imported.
Import Prohibitions

Imports of some commodities are prohibited.
Import Quotas
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Aim:
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Balance of payments
Sectoral protection
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Applied for a specific time period.

Custom tariffs can also be applied.
Import Quotas
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Global Quota:
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Reserved Import Quota (Tahsisli Kota):
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Only quantity is determined. The determined
quantity can be imported from any nation.
Quotas are distributed among importers
according to pre-determined criteria.
Custom Tariff Quota (Gümrük Tarife
Kotası)
Import Quotas

Production increases.

Consumption decreases.

Income distribution is effected.

Scarcity surplus arises

Surplus that arises as a result of the import
scarcity due to high import prices.
Import Quotas
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Scarcity surplus:
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Mostly importer firms benefit.
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Exporter firm will benefit if it as a monopoly.
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If government is selling the import licenses
with an auction, government will benefit.
Import Quotas vs. Tariffs :
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Disadvantages of quotas:
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1. Quotas are more strict.
2. Commodities that cannot be imported
legally, may enter the country illegally.
3. The upper price limit in domestic sales is not
known.
4. No transparency.
5. Necessities extensive bureaucracy in its
determination, application and control.
6. If demand for the commodity is high in the
domestic market, having a share from the
quota brings privilege.
Import Quotas vs. Tariffs :

Advantages of a quota:
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1. In some cases tariffs are not effective in
decreasing imports.
2. The quantity of imports are definitely
known.
Import Prohibitions

Foreign exchange is saved by prohibiting imports
of unnecessary and luxury goods.

Domestic industry is protected from foreign
competition.

Helps to cure trade deficits.
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Imports of illegal goods are stopped.

Embargos
Import Prohibitions
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Larger effects on protection, consumption
and income distribution.

Government cannot raise revenues.

In Turkey these restrictions are not
applied any more.
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1981: Quotas
1990: Import prohibitions
NON-TARIFF TRADE BARRIERS

A. Quantitative Restrictions
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B. Foreign Exchange Restrictions
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C. New Protectionism
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D. Export and Import Taxes
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E. Monopolies and Cartels
B. Foreign Exchange Restrictions
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Multiple Exchange Rate System:
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Under fixed exchange rate systems, different
exchange rates might be applied in trade of
some goods and services.
Foreign Exchange Controls:
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Government controls and interventions on the
foreign exchange operations.
Multiple Exchange Rate System

Applied together with other tools like
quotas or import prohibitions.

Simply there are two exchange rates:

High exchange rate in the market:

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Imports: Luxury goods
Exports: Exports of goods that are encouraged
Multiple Exchange Rate System

Low Official Exchange Rate

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Imports: Essential consumption goods, raw
materials, intermediate and investment goods
Exports: Easily exported traditional agricultural
products
Foreign Exchange Controls

Applied under fixed exchange rate
systems.

Applied with import quotas and under
multiple exchange rate systems.

Central Bank is the single authority to buy
and sell foreign exchange.
Foreign Exchange Controls

Developing countries apply frequently to
control balance of payments deficits.

National currency is not convertible.

Before 1980’s, it caused a black market to
emerge in Turkey (Tahtakale)
NON-TARIFF TRADE BARRIERS

A. Quantitative Restrictions

B. Foreign Exchange Restrictions
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C. New Protectionism
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D. Export and Import Taxes
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E. Monopolies and Cartels
C. New Protectionism
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Voluntary Export Restraints
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Export quota
Protection: Not to create unemployment in the
domestic industries
Political or economic pressure
Example: Japan-USA steel and textile trade
Resource allocation is deteriorated
Benefit to the exporter country: To increase
profits, quotas are filled with high quality,
expensive products (product upgrading).
Uruguay Round: New VERs are prohibited.
C. New Protectionism
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Technical, Administrative and Other
Regulations
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Some are groundless: Japan prohibited
imports of ski
Labeling, packaging, marketing
Environmental protection
Costs of control; international monitoring
companies
Laws regarding public bids
C. New Protectionism
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Export Subsidies
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Aim: To increase profitability of exports
Direct payments or the granting of tax relief and
subsidized loans to the nation’s exporters or potential
exporter’s and/or low-interest loans to foreign buyers so
as to stimulate the nation’s exports.
Economic effects: 
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Terms of trade effect: If export prices decrease in terms of
foreign currency, terms of trade deteriorates.
Foreign exchange earnings: If the import demand elasticity
for the nation’s exports is high-enough, foreign exchange
earnings will increase, besides the deterioration of the
terms of trade.
C. New Protectionism

Export Subsidies

Domestic consumers lose.

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High price
Subsidies are financed by their tax payments
Export subsidies on industrial products are
prohibited by GATT.
Countervailing Duties: They are often imposed
on imports to offset export subsidies by
foreign governments.
C. New Protectionism

Subsidies to industries that are sell in the
domestic market:
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They compete with imports so they are protected
against foreign competition.
Good is sold at world prices in the domestic
market. The difference between the world price
and the domestic cost is paid to the producer.
Consumer surplus does not fall, but the subsidy is
financed by taxes.
Burden on government budget.
It might cause transfer of resources to inefficient,
high cost industries.
NON-TARIFF TRADE BARRIERS
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A. Quantitative Restrictions
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B. Foreign Exchange Restrictions
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C. New Protectionism
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D. Export and Import Taxes
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E. Monopolies and Cartels
D. Export and Import Taxes
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Countervailing taxes on imports:
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Mainly used for agriculture.
It’s effects are similar to import quotas.
In order to prevent imports with low world
prices, the difference between the high
domestic prices and low world prices are filled
with an import tax.
Example: EU Common Agriculture Policy
D. Export and Import Taxes
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Export Taxes:
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Aims to restrict exports.
Common in developing countries. (Example:
Cotton and hazelnut exports of Turkey before)
Aim:
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Raise revenue for the government
To encourage the usage of raw materials domestically
To protect natural resources
To improve terms of trade
NON-TARIFF TRADE BARRIERS
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A. Quantitative Restrictions
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B. Foreign Exchange Restrictions
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C. New Protectionism
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D. Export and Import Taxes
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E. Monopolies and Cartels
E. Monopolies and Cartels

Dumping is the sale of a commodity at a lower
price abroad than domestically.
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Types of dumping:
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Sporadic
Predatory
Persistent
E. Monopolies and Cartels

Sporadic Dumping:
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Occasional sale of a commodity at below cost in order
to unload an unforeseen and temporary surplus of
the commodity without having to reduce domestic
prices.
E. Monopolies and Cartels

Predatory Dumping:
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Temporary sale of a commodity at below cost or a
lower price abroad in order to derive foreign
producers out of business, after which prices are
raised to take advantage of the monopoly power
abroad.
E. Monopolies and Cartels

Persistent Dumping:
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Continuous tendency of a domestic monopolist to
maximize total profits by selling the commodity at a
higher price in the domestic market than
internationally (to meet the competition of foreign
rivals)
E. Monopolies and Cartels
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Dumping: International price discrimination
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Conditions:
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Domestic and foreign markets must be separated.
Demand elasticity of the product must be different in
two markets. The good can be sold with a lower price
where the demand elasticity is high; and with a
higher price where demand elasticity is low. 
E. Monopolies and Cartels
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Dumping:
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GATT: Anti-dumping duties
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Dumping investigation
E. Monopolies and Cartels
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ÇİN HALK CUMHURİYETİ VE SUUDİ ARABİSTAN'A ANTİ-DUMPİNG VERGİSİ
Avrupa Konseyi'nin, 10 Mart 2005 tarihli düzenlemesine göre, Avrupa
Birliği'ne ithal edilen, Çin Halk Cumhuriyeti ve Suudi Arabistan menşeli
polyester kesik elyaflara %5 ve %49,7 oranları arasında anti-damping
vergisi uygulamaya başlamıştır.
(http://www.tekstilisveren.org.tr/dergi/2005/mart/eu-1.html)
Bazı ülkeler kendi çelik üreticilerini korumak amacıyla damping, korunma
ve sübvansiyon adı altında Türk demir-çelik ürünlerine telafi edici vergi
uygulamaktadırlar. ABD, Türkiye'den ithal ettiği borular, inşaat demirleri ve
filmaşine, Kanada soğuk yassı ve inşaat demirine, Singapur inşaat
demirine, Endonezya filmaşine ve Mısır ise inşaat demirine telafi edici
vergi uygulamaktadırlar. Ayrıca, Arjantin Türk lama demir ve L
profillerine, Avrupa Birliği çelik halata, Rusya Federasyonu ise demir-çelik
borulara haksız rekabete neden olduğu gerekçesi ile 2000 yılında antidamping soruşturması başlatmış olup bu soruşturmalar halen devam
etmektedir. Demir-çelik ürünlerimize karşı uygulanan anti-damping
vergileri ihracatçılarımızın bu pazarlardaki paylarının azalmasına neden
olmaktadır. (http://www.ihracatdunyasi.com/turkiye_dis_ticaret.html)
anti-damping soruşturması.doc
E. Monopolies and Cartels

Cartels:

An international cartel is an organization of
suppliers of a commodity located in different
nations that agrees to restrict output and
exports of the commodity with the aim of
maximizing or increasing the total profit of the
organization.
E. Monopolies and Cartels

Example: OPEC

A cartel is more successful if there are
only a few international suppliers of an
essential commodity for which there are
no close substitutes.