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Presents the types of indicators and the methodology that should be used in monitoring the progress of reforms in trade and price policy interventions in the Dominican Republic. Most countries in Latin America are embarking on a unilateral move toward tariffication with bound tariffs, eliminating quota restrictions and removing export taxes. Enforcing such a system will require a transparent trade regime, which means that developing countries must design a mechanism for vigorous screening and monitoring of price interventions. This paper develops a quantitative assessment of trade and price policy interventions in the Dominican Republic, involving seven commodities, for 1985-93. The authors use four policy indicators which, if gauged annually, can expose subsidies and taxes in specific commodity markets. They propose that such surveillance be institutionalized and undertaken periodically as a monitoring mechanism for assessing agricultural trade and price reform.

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