Import Liberalization in 1973–82

Abstract

The distinctive characteristic of trade policies implemented in 1973 was the sharp unilateral import liberalization, which was undertaken to a degree then unprecedented in modern economic history in other semi-industrialized or emerging economies. By establishing a uniform tariff of 10% for nearly all imports, and deleting non-tariff restrictions, this liberalization suppressed all selective criteria for regulating them. Trade liberalization was accompanied by a reduction in restrictions on foreign exchange dealings and on capital flows.

Based on “Import liberalization: the Chilean experience, 1973–82,” in Samuel and Arturo Valenzuela (eds), Military Rule in Chile: Dictatorship and Oppositions, The Johns Hopkins University Press, Baltimore, 1986. I appreciate the comments of Augusto Aninat, Vittorio Corbo, René Cortázar, Jaime Estévez, Alejandro Foxley, Dominique Hachette, and Pilar Vergara.