High tariffs don't foster productive efficient industry, they stifle competition and reward the incompetent.
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The World Economic Forum released its Global Competitiveness Report on the state of the world's economies and it shows that protectionism is mostly a policy of developing nations.
The group analysed data including levels of corruption, inflation, and policy stability to compile a picture of virtually every country. One of the indicators the WEF uses is a country's average international trade tariff burden, measuring the customs duty levied on imports of merchandise. Check out the highest rates below:
19. Brazil: 11.5% – Brazil has high tariffs on imports but this hasn't helped the country balance large current account and government deficits.
18. Venezuela: 11.8% – Venezuela is at the foot of the WEF's global competitiveness table, coming in 130th out of a total of 138 countries, with foreign currency regulations taking the brunt of the blame in the survey.
T=16. Ethiopia: 13% – With a GDP per capita of just $687, Ethiopia suffers from a closed economy.
T=16. India: 13% – India climbed 16 places in the WEF's competitiveness ranking, making it the most improved country of 2016.
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15. Gabon: 13.4% – Gabon came in at 108th in the WEF's overall competitiveness report, with a lack of access to financing cited as the economy's biggest problem.
14. Bangladesh: 13.5% – The European Union is Bangladesh's main trading partner, accounting for around 24% of Bangladesh's total trade in 2015.
13. Egypt: 13.6% – Between 2001 and 2014, UK exports of goods to Egypt fell by around 9%. They were worth £1 billion in 2014, according to the UK government.
T=11. Algeria: 13.8% – In 2013 the UK export trade to Algeria was worth £529 million, making it the UK’s fourth largest market in Africa.
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T=11. Sierra Leone: 13.8% – Sierra Leone has high customs tariffs which account for about 45% of government revenue, according to the World Trade Organisation.
10. Barbados: 14.2% – Imports into Barbados are subject to a standard VAT rate of 17.5%, but some goods are taxed at as much as 70%.
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T=8. The Gambia: 14.3% – The Gambia has a small economy and imports hit $1.1 billion in 2014 – mostly cotton, rice, sugar and petrol – making it the 177th biggest importer in the world.
T=8. Chad: 14.3% – Chad reported a positive trade surplus of more than $1 billion in 2014. Crude oil made up 95% of its total exports.
T=6. Cameroon: 14.6% – Cameroon has an import tariff range of 10-30% on most goods. Clothes and woven silk and wool goods get the top 30% rate.
T=6. Zimbabwe: 14.6% – Zimbabwe has a trade deficit of around $3 billion, with imports accounting for 49% of GDP, while exports run at less than 25%.
5. Pakistan: 16.6% – Import tariffs in Pakistan range from zero to 35% for most goods, with vehicles levied at a higher rate of 65%.
4. Nepal: 16.8% – Customs duty in Nepal accounts for around a fifth of the country's total tax revenue, according to government statistics.
3. Sri Lanka: 17.6% – Most products are slapped with a 15% levy when entering Sri Lanka, but some are taxed at a rate of 100%.
3. Bhutan: 22.7% – Bhutan levies a tax of up to 100% on foreign goods sold in the country, apart from beer, which is taxed at the point of sale rather than the border.
3. Bhutan: 22.7% – Bhutan levies a tax of up to 100% on foreign goods sold in the country, apart from beer, which is taxed at the point of sale rather than the border.
1. Iran: 28% – While the US is tentatively normalising international relations with Iran, lifting sanctions on oil exports, the country's import tariff regime is still the strictest in the world.
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