The Pattern of Protection in the Industralized World

Abstract

Using four-digit manufacturing data from 1975 on nominal and effective tariff protection and nontariff barriers to trade (NTBs), we estimate the structural determinants of protection imposed by the United States, Japan, the European Community and Canada in the Post-Kennedy Round period. We provide evidence that NTBs were used to undercut Kennedy Round liberalization in general and to supplement tariff protection of consumer goods, agricultural manufactures and textiles. Industrialized country NTBs discriminate against manufactured exports from developing countries. We explain that discrimination and the pervasive use of NTBs in the EC in terms of our regulatory theory of trade.