TRADE LIBERALIZATION AND INDUSTRY PROTECTION IN RUSSIA DURING 1992-95

Perestroika initiated trade reforms that are gradually making the Russ ian economy more open and liberal. This paper analyzes industry protec tion in Russia during 1992-95,:including tariff and nontariff barriers , and effective protection. Notwithstanding the successful elimination of export and import quantitative restrictions, nontariff barriers re mained high, e.g., structural and technological impediments, currency controls, cumbersome and lengthy customs and certification procedures, and intellectual property piracy. The trade regime was import-substit uting with high anti-export bias due to export controls. Effective pro tection was moderate at about ten percent on average and nonuniform ac ross industries. Import-competing industries were protected at an aver age rate of three times higher than the negative protection of export industries. Average effective protection increased in 1995, and its pa ttern became more uniform.