Calculating the Equivalent Tariffs for the Iranian Steel Industry

This paper is aiming at reviewing the trade policies for the Iranian steel industry and calculating the equivalent tariffs for that using GATT/WTO methodology for the years 1997 to 2009. The research findings reveal that trade protection has been decreasing except for Iron and non-alloy steel in ingots and shapes and sections of iron over the period. The average for equivalent tariffs includes a wide range i.e. between -13 to 27. For all products, the minimum protection was in 1998 or 1999 and the maximum support for trade products has been in the recent decade (2000-2010). In all cases, the prices in the domestic market have always been increasing. Approximately, in all cases, CIF imported price has seen an increasing trend. For products that equivalent tariff is positive and more than nominal tariff, imported tariff rate for these products are equivalent tariff rate, which is 61% for Iron and non-alloy steel in ingots, 4% for Semi-finished products of iron, 15% for Flat-rolled products of iron, HR, non-clad and 20% for shapes and sections of iron. For products that equivalent tariff is positive but less than nominal tariff, non tariff barriers do not protect and tariff rate is nominal tariff rate, which is (4 or 10)% for Flat rolled prod of iron, CR, non-clad and (10 or 15)% for Bars and rods.