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Can duty-drawbacks have a protectionist bias?

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Can duty-drawbacks have a protectionist bias?
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Olivier Cadot1 editions

Evidence from Mercosur suggests that eliminating duty drawbacks for intra-regional exports would lead to increased counterlobbying against protection of intermediate products. Without the duty drawback, the common external tariff would have been an estimated 3.5 percentage points (25 percent) higher on average.

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  • Olivier Cadot

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