The Political Economy of Nontariff Trade Barriers in Emerging Economies

Abstract

This article examines the counterpoint to recent economic reform programs: policies that potentially defy the reform process. Policy “reversal” is particularly evident in the area of trade liberalization where nations reduced tariffs while simultaneously introducing nontariff barriers (NTB), particularly the widespread antidumping (AD) measure. This research seeks to identify the determinants of these new “postliberalization” trade policies by combining dominant interest group approaches with more state-centered explanations in an examination of two vigorous NTB users, South Africa and Mexico. The results of nested probit analyses suggest that private interests dominate the process in Mexico, while both interests and the state's overall strategic development objectives shape trade policy outcomes in South Africa.