TABLE 4 Tariff-Equivalent
Price Increases Due to NTBs (%) Sector EU NTBs US NTBs Merchandize average 21.
With oil at $70-80 per barrel, the tariff-equivalent
rate is 6%.
The rate at which the "melting" is diminished is set according to the tariff-equivalent
estimates of Francois (1999a) as discussed above.
2) It is difficult to incorporate NTBs in these models, so researchers use so-called tariff-equivalent measures of NTBs in their quantitative analysis (that is, the level of tariff protection that yields the same levels of output and trade as the NTB).
I take the standard approach of imposing tariff-equivalent NTBs.
Second, NTBs are incorporated into the numerical analysis by way of tariff-equivalent NTBs.
It is difficult to model nontariff barriers (NTBs) directly, so I take the standard approach of imposing tariff-equivalent NTBs.
Prices in the UK have been affected by import quota restrictions on non-ACP suppliers, and have, therefore, been relatively high, the tariff-equivalent
of the pre-1993 quota restrictions being 34%.
Where an MFA quota is the binding restraint, the tariff-equivalent
of the quota obviously will exceed the ordinary tariff, often by a sizeable amount.
This derivation can be used to evaluate the tariff-equivalent of the EC minimum import price.
The UK quantity restriction is clearly more restrictive than the tariff-equivalent level for a quota.
TABLE 4 Actual and optimal policy levels Actual UK quota 160,700 (tonnes) Tariff-equivalent quota 290,113 (tonnes) Actual EC minimum import price 93.