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Paper Information

Journal:   JOURNAL OF AGRICULTURAL SCIENCES   MARCH 2008 , Volume 13 , Number 1 (SUPPLEMENT); Page(s) 13 To 27.
 
Paper: 

STUDY ON IRAN'S AGRICULTURAL TARIFF PROTECTION (1363-84)

 
 
Author(s):  FEIZABADI Y.*, MOGHADDASI R.
 
* ISLAMIC AZAD UNIVERSITY, GAEMSHAHR BRANCH
 
Abstract: 
The superiority of free trade is one of the profession's most cherished beliefs, yet international trade is rarely free. Perhaps no other area of economics displays such a gap between what policy makers practice and what economists preach as does international trade. In this investigation, Tariff protection procedure of agricultural sector is analyzed by statistical analysis approach during the period of 1363-84 in Iran.
agricultural sector's tariff regime is characterized by i) a high average tariff ii) an extremely dispersion of tariff levels across tariff lines, iii) significant amount of tariff escalation and ix) a deep gap between average nominal tariffs and import-weighted average tariffs. High tariffs appear consistent with the political economy equilibrium in Iran. To assess tariff structure of agricultural sector, one first needs to understand what determines that structure in Iran .consequently, Several analytical propositions are derived that are broadly consistent with the stylized and observed patterns of tariff protection in developing countries: i) nominal protection rates that escalate with the degree of processing ii) higher average tariff protection in agricultural sector compared to all developed countries agricultural sector (and even many developing countries agricultural sector) and finally often iii) higher agricultural sector's tariff protection compared to non-agricultural sector's tariff protection. This investigation urges designing a long-run optimum tariff structure in which trade reforms and rational tariffs reduction are aimed. It could lead to trade liberalization and pave the way for joining to World Trade Organization.
 
Keyword(s): TRADE POLICY, TARIFF PROTECTION, AGRICULTURAL SECTOR, WORLD TRADE ORGANIZATION, TARIFF ESCALATION
 
References: 
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