Assessing the efects of eliminating non-tariff barriers over the Argentine Textile Exports

Abstract

This paper offers a quantification of price differentials not explained by tariff policy and the assessment of efficiency costs burned on different economic agents involved in textile products trade between Argentina (exporter) and Brazil (domestic producer). Simulations are carried out to show the effects of the distortion of price differentials, considered like non tariff barriers or a set of them and others obstacle to trade. From the removal of non tariff barriers results that consumers and exporters obtain grater consumer surplus and profits, respectively, while domestic producers loose part of their producer surplus. Consumers and exporters are better because of changes in terms of trade; in some products consumers obtain graters benefits than exporters and vice versa. Likewise, changes in elasticities (direct elasticity of supply and demand) were simulated to observe distortions in previous results.Textile sector; computable partial equilibrium; commercial policy