Definition of Cabotage

The transportation of goods in a country by foreign carriers. e.g. a lorry delivering French wine may cross the channel and then deliver it directly to parts of the UK.

Cabotage as a Trade Barrier.

If a government places restrictions on cabotage, insisting transport within a county be undertaken by domestic firms, then it will act as a barrier to trade. Effectively it increases the cost of importing goods.


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