POLITICAL-ECONOMY ARGUMENTS FOR A UNIFORM TARIFF

We consider three political-economy arguments in favor of a uniform ta riff rule (UTR). First, if tariffs are determined by lobbying, adoptio n of a UTR creates a free-rider problem. A tariff resulting from lobby ing by one sector becomes available to all other sectors. This reduces incentive for lobbying. Second, if there are imported inputs which ar e used by import-competing sectors, a UTR leads to a lower level of lo bbying. Finally, a UTR may tie the hands of a future government expect ed to favor certain sectors over others, and enhance welfare ex ante. None of these presents an air-tight case for uniformity.