Munich Personal RePEc Archive

Furniture Industry Assessment: Trade Policy and Market Opportunities

Lord, Montague J. (1999): Furniture Industry Assessment: Trade Policy and Market Opportunities.

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Abstract

The report analyzes the international competitiveness of furniture industry based on calculations of effective rates of protection and trade indicators. Furniture manufacturing remains one of the most highly protected industries in Egypt. Although the nominal rate of protection (NRP) for that industry was lowered from 50 percent in 1997 to 40 percent, its rate remains the fourth highest of all manufacturing categories. The effective rate of protection (ERP) for the wood furniture industry is also very high. Moreover, the ERP for the private sector, which dominates the industry, is more than twice as high as that of the public sector. The effect of high import tariffs on furniture products has been to lower overall imports considerably below what they would otherwise have been with growing consumer demand in Egypt. The recommended policy initiatives are designed to strengthen exports of the furniture industry by improving the trade environment, lowering costs and improving efficiency. To be effective, these initiatives need to be viewed as an integral part of the country’s overall economic policies and structural reforms.

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