A Dashboard for Trade Policy Diagnostics

The set of measures that affect international trade in goods and services defines trade policy. Trade policies affect trade costs. ‘Good’ trade policy seeks to minimize trade costs. Traditionally trade policy was restricted to measures imposed at the border (tariffs, import quotas, export taxes, subsidies). It is now recognized that trade costs extend beyond border measures to include ‘behind-the-border’ measures (logistics, regulations). Trade costs also depend on the quality of the institutional environment (completeness of contracts and enforcement). This primer proposes elements of a ‘good trade policy’ for an African country where the context is country-specific but where common geographical characteristics, common policies, and common market failures often prevail.