Assessing non-tariff barriers in Syria

• Published in: Journal of policy modeling 2008-09, Vol.30 (5), p.917-928
• Main Authors: Chemingui, Mohamed Abdelbasset, Dessus, Sébastien
• Format: Article
• Language: English
• Subjects: Computable general equilibrium models; Development Planning and Policy: Trade Policy; Economic models; Equilibrium models; Factor Movement; Foreign Exchange Policy O240; Imports; International Linkages to Development; International trade; International Trade Organizations F130; Role of International Organizations O190; Simulation; Studies; Syria; Tariffs; Trade Policy; Trade restrictions
• ISSN: 0161-8938; 1873-8060
• DOI: 10.1016/j.jpolmod.2007.03.003

International trade in Syria is highly regulated through a combination of tariffs and non-tariff barriers. At 8% of the value of imports on average, effective tariffs are relatively low. However, non-tariff barriers to trade actually make Syria's trade restrictiveness very high. Comparing world and domestic prices of imports indeed suggests that non-tariff barriers increase the domestic price of imported goods by 17% on average, notably the result of significant quantitative restrictions. Using a computable general equilibrium model, the costs of NTBs on the Syrian economy are assessed. Simulations suggest that reallocation gains resulting from a complete removal of NTBs could be substantial. Accordingly, the key message from the analysis is that trade reform if it focuses only on tariff reduction will have limited growth benefits. On the contrary, if the Government abolishes the widespread non-tariff barriers to trade, including the elimination of quantitative trade restrictions, trade policy can become the central instrument to redress Syria's growth prospects.