Using two sets of estimates for effective protection rate and domestic resource costs for1980, 1982 and 1984, it has been found out that the negative protection accorded to the flour and flour-based products industry has reflected high social profitability due to its efficiency and competitiveness. Moreover, performance indicators of the biscuit firms exhibit difficulty in adjusting to tariff reform and import liberalization. Hence, a graduated scheme of import liberalization for competing products should be given to local firms.
