Political economy of protectionism

Ukrainian MPs can not agree on almost anything: new pension system, tax reform, anti-crisis law, land reforms are debated for decades without reaching any consensus. However, they are very effective in imposing protectionists barriers against imports. After the previous temporary 13% import duties on cars and refrigirators expire on September, 7, the MPs of Party of regions, BYT, and Litvin's Block registered a new legislation that will introduce 15% import duties on cars and meat. It all comes despite the fact that all experts agreed that the previous protectionist measures were ineffective. Imports already declined by 51.3% relative to the same period of the previous year mostly due to almost 100% hryvna devaluation.

Such effectiveness in protectinist measures can be linked to political connections of main car producers in Ukriane with BYT party and refirigirator producers with Party of Regions. It is yet to be established how meat producers are connected to MPs.