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About: Import parity price     Goto   Sponge   NotDistinct   Permalink

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Import parity price or IPP is defined as, “The price that a purchaser pays or can expect to pay for imported goods; thus the c.i.f. import price plus tariff plus transport cost to the purchaser's location. This and the export parity price together define a range of the possible equilibrium prices for equivalent domestically produced goods”. A simpler definition is used by the UN World Food Programme: “The import parity price (IPP) is the price at the border of a good that is imported, which includes international transport costs and tariffs”.