Reports
Discussion Papers
No.1015 Trade Impacts of Minimum Import Prices: Evidence from the Steel Industry in India
by Kazunobu Hayakawa, Kuo-Feng Kao, and Hiroshi Mukunoki
September 2026
ABSTRACT
Unlike those of other import-restrictive measures, the trade effects of minimum import prices (MIPs) are not widely known because of their low use in the past. To examine the effects of MIPs, we empirically investigate those introduced in the steel industry in India in 2016. One unique feature of this case is that during the effective period of MIPs, India also raised import tariffs and introduced safeguards and antidumping (AD) measures for some steel products. Therefore, examining this case offers a rare opportunity to empirically compare the trade effects of various import-restrictive measures. Specifically, we use monthly import data on India’s steel industry from January 2014 to December 2016. The robust results showed that MIPs increased import prices and reduced import quantities, resulting in a decrease in total value. By contrast, other import-restrictive measures, including import tariffs, safeguards, and AD measures, did not show robust and significant effects. These results may indicate a relatively strong effect of MIPs on trade among import-restrictive measures.
Keywords: Minimum import prices; Steel; India
JEL classification: F15, F53
PDF available at https://hdl.handle.net/2344/0002002072
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