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Abstract:
Free trade policy (or free trade in English) appeared in the second half of the
18th century as a phenomenon of economic life. In its theoretical foundation, A. Smith’s
famous work - “The nature and causes of the wealth of nations” became decisive. The
theory of free trade was developed by another English economist. It was developed and
almost completed in the works of Ricardo.
Key words:
regulation
,
fiscal, incentive, protectionist
The foreign trade policy of any country is considered an important component
of the government general economic direction, and in a narrower sense, it is
one of the areas of budget-tax activity related to the regulation of the volume,
composition and geographical direction of export-import commodity flows. Since
the foreign trade policy is inextricably linked with the internal aspects of economic
development, its main task is to create favorable external economic conditions
necessary for expanded domestic reproduction and an increase of national wealth.
Free trade policy (or free trade in English) appeared in the second half of the 18th
century as a phenomenon of economic life. In its theoretical foundation, A. Smith’s
famous work - “The nature and causes of the wealth of nations” became decisive.
The theory of free trade was developed by another English economist. It was
developed and almost completed in the works of Ricardo. D. Ricardo developed
Adam Smith’s ideas about the importance of free enterprise in a competitive
environment and the role of the state as the “night watchman” of society, leaving
the country’s economy under the rule of the “invisible hand”, that is, at the discretion
of the self-regulating laws of the market. Classic examples of free trade policy can
be observed in the economy of the Anglo-Saxon countries of the second half
of the 19th century, especially Great Britain and its dominions (states that were
part of Great Britain until 1947 and were formally independent). Until now, there
is not a single country left where the state has the classic form of the free trade
system. This is self-explanatory, of course, given the significant increase in the role
of the state in regulating influential organizations. However, the elements of free
trade policy are still visible in the economic course of many countries, especially
in developing countries that are small in terms of territory and resources, such
as Singapore. In economic theory, free trade is usually contrasted with the policy
MADIEV FARRUKH
teacher Samarkand State University of
architecture and construction,
E-mail: djfmfarruh@gmail.com
IMPLEMENTATION
OF INTERNATIONAL
STANDARDS IN TRADE
REGULATION BY THE STATE
https://doi.org/10.47689/STARS.univer-
s i t y - 5 - p p 2 9 - 3 2
«Yangi O‘zbekiston: Moliyaviy hisobotning xalqaro
standartlarini joriy etishda muvaffaqiyatli
xalqaro tajriba» 16 dekabr, 2022 yil.
32
of protectionism, that is, the system of economic and administrative measures
introduced by the state to protect the national economy from the negative effects
of internal and external market principles.
Protectionism, by its very nature, has existed since the first nations were formed.
The principles of this policy are theoretically based on the American statesman
A. Hamilton (late 18th century) and the famous German economist F. Developed
in the works of Liszt (mid-19th century). However, protectionism as a series of
practical measures reached its climax during the totalitarian regime of the left
(USSR) and right (“Third Reich” - Nazi Germany) political currents on our planet.
In these countries, the trade sector was characterized by a state monopoly. As
mentioned above, the main principle of international economic relations is the
transition of a larger number of countries to a free trade policy that ensures an
increase in the welfare of the population, but a process called “selective” restoration
of protectionism is also observed.
State regulation of foreign trade can take different forms. They can be divided
into two main types, which differ significantly by the nature of their impact on
commodity flows: economic and administrative. When using economic (also called
tariff) methods, producers and consumers, first of all, determine the price ratio,
and the quality of the export and import of goods and resources, and comply
with the terms. When using administrative (respectively, non-tariff) methods of
foreign trade regulation, the market mechanism is influenced by government
bodies, whose decisions and actions determine largely the wishes of producers
and consumers. Tariff methods affect directly the price of goods. These methods
are the most common in foreign trade practices of countries because they allow
solving three tasks at once:
1) fiscal - receiving additional funds for the budget;
2) incentive - development of relations with foreign partners;
3) protectionist – the creation of favorable conditions for national producers of
goods.
Among the methods of tariff regulation of foreign trade are customs duties,
duties, levies, as well as other indirect taxes, e.g. excise duty. Non-tariff methods
mean levers of influence on trade, that is, limitation of the volume and nomenclature
of imported or exported products. They are more typical for countries with
developing transitional economies that require protectionist economic policies
from the government, where market structures are being formed. Non-tariff
measures include quotas, licensing, export subsidies, dumping, cartel agreements,
and the creation of technical barriers to the flow of goods between countries.
The analysis of statistical information on countries and regions of the world
shows that foreign trade is increased by the state Another feature of customs
tariffs of developed countries is their correlation with the Harmonized System
of International Commodity Description and Coding (UT), introduced in 1988. A
characteristic feature of the customs policy of the group of developing countries
is the wide use of export duties and the maintenance of relatively high import
tariff rates (these rates reach an unprecedented level for developed countries
- up to 50-100 percent, even higher in Egypt, Ecuador, Pakistan). Furthermore,
most developing countries, unlike the US, Japan and European countries, are
just transitioning from the old Brussels commodity nomenclature to the new
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Harmonized System. Therefore, some of them use multi-column tariffs (Senegal
— 9, Mali — 17). Along with national tariffs, the integration of several countries
into customs unions in the global economy is becoming widespread. Customs
Unions practice various forms of interstate regulation of foreign trade, relying on
the support of various regional and global international organizations.
Customs duties are one of the most common methods of state regulation of
foreign trade in the practice of foreign economic activity. Customs duty means
a special monetary levy, a tax, which is collected when the goods cross the state
border in its economic sense. The variety of forms of customs duties is explained by
the extremely wide scope of their functions in the process of regulating commodity
flows. Let us remind you that the main purpose of introducing customs duties is
to increase the revenue part of the budget and fight against “unfair” competition.
That is why this method of influencing trade is currently used in more than a
hundred countries of the world. Depending on the direction of the flow of goods,
there are import, export and transit duties.
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