Syndicate content

July 2018

How to measure trade protection?

Caroline Freund's picture

What is the best single measure of a country’s import tariffs? As we know, countries don’t have a single tariff, but a landscape of tariffs and other trade barriers. For comparison purposes, it is useful to distill the array of tariffs down to a single number.

In terms of tariffs, there are two common ones: the simple average Most Favored Nation (MFN) applied tariff and the weighted average MFN applied tariff. (MFN is the tariff that WTO members and other favored partners receive.) Neither is perfect.

Impacts on Global Trade and Income of Current Trade Disputes

Caroline Freund's picture

Much has been written on the escalation of the trade dispute. What hasn’t been discussed is what will be the impact on developing nations who rely on trade as an engine of economic growth for ending poverty.  

As tariffs are beginning to be imposed, my team analyzed the impact of these new tariffs and the potential for tariff escalation in developing countries in a new World Bank working document. We found that the new trade tariffs will depress bilateral trade, disrupt global supply chains, and increase demand for substitutes from developing countries.  
 

Photo Source: Avigator Fortuner, Shutterstock

Exposure of Belt & Road Economies to China Trade Shocks

Paulo Bastos's picture
The Belt and Road (B&R) Initiative seeks to deepen regional integration by improving infrastructure and strengthening trade and investment linkages along the old Silk Road, from China to Europe. With several infrastructure projects already ongoing, the initiative is expected to progressively reduce trade costs over the coming decades, and hence generate long-run economic gains for B&R economies.
 
Photo: Rob Beechey / World Bank