ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Para-Tariffs and Sri Lanka's New Protectionism

In November 2004, Sri Lanka reversed its relatively open trade policies and now has one of the world's most complex and protective import regimes. This has been done by deploying a variety of para-tariffs over and above customs duties, the significance of which appears to have escaped the notice of most of Sri Lanka's trading partners, including India. Unless rapidly unwound, these new policies will seriously damage the country's future economic growth. They also subvert Sri Lanka's preferential trade agreements, and breach its World Trade Organisation commitments.

Industrial Sickness Primary and Secondary

Garry Pursell The subsidising and continued production of marginal firms which would normally leave the industry ('primary sickness') further depresses price and leads to losses and the subsidising of a further set of firms ('secondary sickness') which would have been profitable had the first set been allowed to leave. The total 'sickness effect', consisting of the primary plus the secondary sickness effects, is shown to depend on the elasticities of demand and supply. The economic welfare consequences of this case are discussed.
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