ABSTRACT
INTRODUCTION As a large number of countries embark on programs aimed at liberalizing their external sector, issues related to the actual design of trade policies have become increasingly important. In particular, the multilateral institutions have become more and more concerned with some of the specific characteristics of reformed (more liberalized) trade regimes. Broad issues such as the adequate sequencing of reform and the relationship between trade liberalization and macroeconomic adjustment have, in fact, dominated recent policy discussions (Choksi and Papageorgiou, 1986). However, at a more specific level, one of the most important aspects in designing a new and more liberalized commercial policy refers to the structure of import tariffs. Should tariffs in certain sectors be higher than in others, or should they be uniform? As a matter of practical advice, for example, the World Bank is increasingly recommending a uniform tariff structure (Shalizi and Squire, 1988). Other policy advisers, however, have argued that non-uniform tariffs are preferable, with higher tariffs granted to those sectors with more potential for creating employment (Foxley, 1983).
