Trade Neutrality as an Export Promotion Measure
Channel: Carden Madzokere
Date: 2021-03-08

Trade neutrality:
- Subsidies equal in size to import duties are paid.
- Since the protection of domestic industries raises the cost of inputs for potential export producers, the latter can only become internationally competitive and experience growth in exports if the cost-raising effects of protection are neutralised by direct and indirect subsidies.