CHAPTER 4 EXTENT OF EFFECTIVE PROTECTION The previous chapter has highlighted that a transition has been made to a tariff based system (TBS) from the system of physically setting targets for deletion in the automotive sector in conformity with WTO requirements. The objective of this chapter is to determine what the resulting levels of effective protection indifferent sub-sectors. Section 4.1 sets up the methodology for quantifying the effective rate of protection (ERP). Section 4.2 presents estimates of the ERPs. Based on these estimates we present in Section 4.3 recommendations for changes in the tariff policy in a medium term setting.
