Temporary trade barriers have become more than an important bellwether for contemporary protectionism; with persistent tariff levels, they are now a primary obstacle to free trade. The World Bank’s newly updated Temporary Trade Barriers Database suggests that the Great Recession-era increases in import protection may be levelling off. Now policymakers begin to face the daunting task of dismantling all of those temporary barriers they imposed during the early phase of the crisis.
Chad Bown, 27 June 2014
Dennis Novy, 11 October 2012
Trade barriers such as transportation costs and tariffs reduce international trade. But when these trade barriers come down, do they increase international trade equally among countries? This column presents evidence from OECD countries that trade costs have a differential impact depending on the trade intensity of the countries involved. When they already trade a lot, country pairs hardly benefit. But bilateral trade grows faster when the initial trade relationship was thin.
Michael Ferrantino, 11 February 2012
As tariffs have declined steadily since the 1940s, government interventions to restrict imports have increasingly taken non-tariff forms. This column argues these add many trade costs along the supply chain and, in a world where production is fragmented across countries, they are associated with development traps. Regional initiatives and a focus on logistics measures can help bring supply chains to new parts of the world.
Cecília Hornok, 09 July 2011
Trade barriers that delay transactions are like sand in the wheels of a global economy in which firms trade frequently and international production is fragmented. This column presents evidence showing how the elimination of border controls and customs procedures within the EU has contributed to faster trade, lower trade costs, and larger cross-country trade.
Nikolaus Wolf, Volker Nitsch, 09 November 2009
The fall of the Berlin Wall 20 years ago created a number of "natural experiments" that economists have exploited to advance our understanding of fundamental issues. This column reviews the use of German data to examine the surprisingly large impact that international borders have in geographically dampening buying and selling patterns. Its results show that the biggest barriers to trade stem from economic fundamentals rather than technological and political barriers. Infrastructure and tariffs can come done quickly; it takes at least a generation to tear down the wall in our minds.