The main purpose of this study is to examine the most important components of foreign trade policy in Egypt and to assess their impact on production performance and on export incentives. It will focus on distortions resulting from the trade policy adopted by Egypt during the eighties, starting in 1986. Trade distortions resulting from other policies such as price controls and investment incentives in various activities are very serious. However, the analysis is confined only to distortions arising from trade policies, namely, the tariff structure, various nontariff barriers, and the exchange rate system.
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