Trade Suppression

Trade suppression in Global Commerce Policy

In this regard, trade suppression is: a term introduced by Jacob Viner and popularized by Max Corden. The entries on trade policy are here. It describes the replacement, following the formation of a customs union or a free-trade area, of a cheaper production source outside the union or area by a more expensive source within the newly formed preferential area. The more expensive source would be more competitive because it could benefit from the absence of tariffs. See also trade creation and trade diversion.[1]

Trade suppressionin the wold Encyclopedia

For an introductory overview on international trade policy, see this entry.

Resources

Notes and References

1. Dictionary of Trade Policy, “Trade suppression” entry (OAS)

See Also