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To ensure that tariff rates for subcategories that are relatively more important in terms of total imports receive a greater weight in the constructed average industry-level tariff, a weighted average tariff was constructed using imports as the weight.
Figure 3 Import Weighted Average Tariff Rates by Industry, 1997 to 2005.
Finally, the trade policy data is linked to the labor market data at the two-digit industry level9.Figure 3 presents data on the import weighted average tariff for 1997 and 2005, by industry.
The measure of binding overhang is expressed using weighted average tariff data.
The weighted average tariff rates present a different picture than do the simple averages.
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In 1996, estimates the OECD, Canada's import-weighted average tariff was 5.7%, its simple average was 9.2% and its production-weighted average was 12.1%.No matter which weighting system is used, averages tell you nothing about extremes.
Specification (1) uses the import-weighted average tariff as the trade policy variable, specification (2) uses the import penetration rate as the trade volume measure, specification (3) uses export intensity, specification (4) uses the trade openness index, and specification (5) uses the industry penetration index.
The weighted average applied tariff is 14percent in the industrial countries - well below the simple average of 24percent.
Since it could not possibly examine the internal accounts of the hundreds of firms cited by the shrimpers, most people expected the department to take its traditional approach: look at the three biggest exporters in each country and apply a weighted average of their tariff rates to everybody else.Unfortunately, the Commerce Department had recently taken a different approach.
Its average tariff, weighted by the composition of imports, is 5.56%, compared with Brazil's 10.47%, according to the World Trade Organisation.
"Look," he demands sharply, "what do you think the weighted average is of the common external tariff?
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