State Trading Enterprises as Non-Tariff Measures: Theory, Evidence, and Future Research Directions

Steve McCorriston and Donald MacLaren

Applied Economic Perspectives and Policy, 2012, vol. 34, issue 4, 696-723

Abstract: We review issues concerning the use of state trading enterprises (STEs) as a non-tariff measure in importing countries. We focus on a tariff equivalent measure that captures the main features of markets where STEs are used, and we identify the factors that influence tariff equivalent effect. We supplement this discussion with case studies highlighting the potential to improve the transparency of trade-distorting enterprises as employed across importing countries. These studies also highlight that, as the role of the STE changes, so too does the size of the tariff equivalent. Increasing the transparency of STEs can aid the treatment of them in trade negotiations. Copyright 2012, Oxford University Press.

Date: 2012
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