Thailand’s Effective Rate of Protection on Wine

Abstract

This paper examines Thailand’s wine industry and tariffs on wine and any intermediate inputs. This is achieved using firm-level data in computing the effective protection rate on wine within Thailand. Findings on the effective rate for the domestic wine industry are greater than the nominal tariff of 60 percent. In addition this research will provide a summation of the wine industry in Thailand and the usefulness the effective rate provides to the industry. A higher price on imported wines not only protects the domestic wine industry, but also substitute goods that are dominant in Thailand such as beer and whiskey.