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Recently the World Bank has encouraged countries to convert existing quantitative trade restrictions into price constraints as a prelude to gradual, scheduled reductions in barriers to trade.(19) Where the expected benefit from tariff protection is positively related to world price variance, gradual liberalization in industries that receive redundant protection could be facilitated by switching to a variable levy that reduces domestic price fluctuation.
A zero quota or a variable levy can also be used to provide prohibitive levels of protection, but each has certain liabilities.
Quantitative restrictions, along with the variable levy, are commonly referred to as "hard-core" NTMs.
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