International Trade Fishery Import

Question: Discuss about the International Trade Fishery Import. Answer: Russia Removed import duties on Fish Products https://www.maritimeherald.com/2016/russia-removed-import-duties-on-fish-products/ The article presents an economic decision made by the Russian Government to spark fishery imports and meet the escalated demand for fishery products. The decision not only does that but goes further to kindle foreign trade, create an attractive Fishery products market in Russia and trigger the sprouting and development of the fish processing plants in Russia. The Russian government, through Directorate of Federal Customs Revenues and Tariff Regulation, removed import duties on fish products. The decision was mainly instigated by the imbalance between demand and supply of the fish products in Russia. Additionally, the deficit in meeting the demand of fishery products, saturated domestic market and need to expand the fishing processing industry instigated zeroing of the import duties for fishery products. In the article, an official statement of the Ministry of Economic Development notes that, Due to saturation of the domestic market and meeting the demand of fishery products, as well as increasing of the load of fish processing plants, was considered appropriate to zero the import duties for marine fish production. The Russian decision is further cemented by the economic statistics that had been collected over some previous years. Basing on the statistics given by the Russian Federal Fisheries Agency, Russia reported about 13% decrease on the imported fishery products. A trend that needed an urgent economic decision to create a balance between demand and supply besides creating other economic merits mentioned above. The articles notes, The Russian Federation imported 307,500 tons of fish products, which is 13% less than the same period last year. Import duties, also known as tariffs, are a tax imposed by the government on goods bought from other countries (imports). Simply put, import duties raise the price of goods thus consumers pay higher price to acquire a basket of goods[1]. Although they are mainly imposed to prevent free trade hence protecting the domestic industries from relatively cheaper imported goods, import duties mainly leads to retaliation by other countries. The exporter may too impose import duties on the other countrys exports. Fig1.-Effects of import Duties on Equilibrium Price Analyzing the above figure, without any trade, the equilibrium price (P0) is 1.80 and a quantity of 40 million is exchanged. However, when an import duty of 0.4 is imposed the price of import drops by 0.20 to 1.60. Consequently, the quantity of the import drops by 20 million. That is 50 million less 30 million. Fig2-Effects of Reduction of Import Duties Assuming that Russia did not entirely remove the import duties on the fishery products but reduced the amount of tariffs charged on imports, in this case, the import duties will be given by . The Tariff (Import duty) causes a reduction in imports. Analytically, the imports were Q4-Q1 but after imposing import duties, the imports fall to Q3-Q2. We can therefore say that trade liberalization which involves repelling of barriers to trade, free trade creation and lower prices for consumers can be fathered by removing import duties.[2] Besides, the move to repel tariffs have other myriads of benefits to the counties involved including peaceful political existence which further encourages trade between trading parties. However, despite the benefits that comes with reduction or removal of tariffs, imposition of taxes have some benefits too. Imposing duties on imports increase revenue collection by the government (other factors remaining constant, e.g amount of imports), protects domestic industries from international completion and may to some extend discourage importation of harmful goods[3]. Generally speaking, the move by Russian government, as brought forward by the article, to remove the import duties on fishery products will be a boon to fostering the expansion of domestic fishery plants. Besides, it will strike a balance between the demand and supply that was being encountered by the domestic consumers as noted in the article, Due to saturation of the domestic market and meeting the demand of fishery products, as well as increasing of the load of fish processing plants, was considered appropriate to zero the import duties for marine fish production. Most importantly, the decision will improve the benefits it derives from the international meet the industry demands of its locals. Bibliography Tragakes, Ellie. Economics for the IB Diploma- Second Edition (Cambridge: Cambridge University Press, 2012) Irwin, Douglas. Free Trade Under fire-third Edition (Preston UniversityPress, 2012) Tragakes, Ellie. International Trade Economics for the IB Dimploma. 2nd.ed.Cambridge UP, 2012.366.Print Irwin, Douglas. Free Trade under Fire.3rd.ed.Priceton University press, 2012.265.Print Irwin,301