TAXES IN INTERNATIONAL TRADE THEORIES AND TRADE POLICY INSTRUMENTS (original) (raw)

The article reviews the economic theories of international trade, emphasizing the role of taxes. In addition to reviewing the main theories, trade-economic policy instruments associated with taxation, such as customs duties, border tax adjustments, and transfer pricing regulations, are discussed. In summary, this study provides an overview of the economic rationale for WTO rules on taxation and the provisions of binding WTO agreements related to border adjustments and internal taxes (direct and indirect). Additionally, it presents a possible economic explanation for these principles by briefly setting out the basic theory of trade policy instruments.