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Chapter 9 Nontariff Barriers to Imports 非关税壁垒. 9.1 Introduction Chapter Objective To examine the major kinds of nontariff barriers and their effects. Contents. Import Quotas Voluntary Export Restraints Product Standards Domestic Content Requirements Government Procurement
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Chapter 9 Nontariff Barriers to Imports 非关税壁垒
9.1 Introduction • Chapter Objective • To examine the major kinds of nontariff barriers and their effects.
Contents • Import Quotas • Voluntary Export Restraints • Product Standards • Domestic Content Requirements • Government Procurement • Measurement of Costs of Protection
9.2 Import Quota 配额 • Import quota 进口配额 • Tariff-rate quota 关税配额 • Global quota 全球配额 • Country-specific quota 国别配额
Effects of a quota in a Small Country PY Sd Sd+q quota b C: quota rents P1 d a c P0 SW Dd O Y1 Y3 Y2 Y0 Y
Who gets the quota rents? • Importers Fixed Favoritism Free assignment of quotas to importers on the basis of past performance Net welfare effect: - ( b+d )
Who gets the quota rents? • Government Public Auction • Auction “under the table” Net welfare effect: - ( b+d )
Who gets the quota rents? • Importers (partly) Resource-using Procedures • First come, first serve • Demonstrating need or worthiness • Negotiation Net welfare effect: - ( b+d+c ) ?
Effects of a Quota in a Large Country PY Sd Sd+q q b SW d P1 a c P0 Optimal Quota P2 e Dd O Y1 Y3 Y2 Y0 Y
Net welfare effect for a large country: e - ( b+d ) Nationally Optimal Quota
Comparison of Tariffs • and Quotas • Equivalence of tariffs and quotas • Differences • Tariff Revenue vs. Quota Rents • Protective effects • Damaging effects on the economy (Monopoly and Efficiency)
9.3 Voluntary Export Restraints自愿出口限制 • Are VERs voluntary ? • History 1981: Japanese VER on car exports to the USA, 1.8 million per year • Multilateral Discipline According to the Agreement on Safeguards, VERs shall be phased out by 1999.
Effects of VERs • Similar to those of Quotas • Quota rents to be captured by the exporting firms or their government.
Effects of VERs in a Small Country PY Sd Sd+q VER quota b P1 Export Price d a c P0 SW Dd O Y1 Y3 Y2 Y0 Y
Effects of VERs • Total losses for the importing country: b+c+d • Worse than quotas
Effects of U.S. Auto VER • Loss in consumer surplus: USD 13 billion • Net national loss: USD 3 billion
Other Effects of VERs • Quality Upgrading • Foreign Direct Investments
9.4 Product Standards 产品标准 • Technical Barriers to Trade • 技术贸易壁垒TBT • Standards • Certification
9.5 Domestic-Content Requirements 当地成分要求 • China: Imports of Car Parts • Tariff: car 25% • car parts 10% • Mixing Requirement
9.6 Government Procurement 政府采购 • Buy American Act 1933 • 6% margin preference for US goods • 50% for military goods WTO : 1979; 1994 Government Procurement Agreement Plurilateral agreement.
9.7 Measurement of Costs of Protection • Costs as a Percentage of GDP The case of a small country
Net national loss / GDP = 1/2 X Tariff rate X Percent reduction in import quantity X Import value / GDP
Example • Import tariff : 10% • Import quantities reduced: 20% • Imports / GDP: 20% • Net national loss / GDP = 0.2%
China (2005) • Import tariff : 9.9% • Import quantities reduced: 20% • Imports / GDP: 660/2251(bln)= 29% • Net national loss / GDP = 0.29% • Net national loss: RMB 52.9 bln
Actual costs may be higher • Foreign retaliation • Enforcement costs • Rent-seeking costs • Rents to foreign producers (VER) • Innovation
Reducing protection: • The role of GATT/WTO • General Agreement on Tariffs and Trade (GATT) 1947 • Tokyo Round 1973-1979 • Uruguay Round 1986-1993 • Doha Round 2001-
U.S. Unilateral Action • Section 301 (1974) Unfair trade • Super 301 (1988) Trade Barriers • Special 301 (1998) Intellectual Property Rights Watch List; Priority Watch List
Special 301 Priority Watch List 2004 ARGENTINA KUWAIT BAHAMAS LEBANON BRAZIL PAKISTAN EGYPT THE PHILIPPINES EUROPEAN UNION INDIA RUSSIA INDONESIA TAIWAN KOREA TURKEY
重点观察名单2010 • 中国、俄罗斯、阿尔及利亚、阿根廷、加拿大、智利、印度、印尼、巴基斯坦、泰国、委内瑞拉