The Economic Effects of Non-Tariff Interventions

Abstract

We have already introduced non-tariff interventions in Chapter 3 in connection with our analysis of the theory of optimal intervention. There we identified the criteria by which we could rank one policy instrument relative to another. In this chapter we will consider the economic effects of some non-tariff interventions in rather more detail. One important difference between this chapter and Chapter 3 is that we will not spend a great deal of time considering arguments for non-tariff barriers. The material we introduced in connection with tariffs can largely be replicated here, although as we shall see in the following chapter, the predominant motive where the new protectionism is concerned has been employment protection. Although we will not spend as much time formally evaluating ‘arguments’ as we did in connection with tariffs in Chapter 3, it is important to remember that prescriptions about non-tariff interventions are subject to the same sort of analysis, and can be ranked relative to tariffs.