Import parity price


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 Program: “The import parity price is the price at the border of a good that is imported, which includes international transport costs and tariffs”.
The USAID Market and Trade Glossary definition is: "Import parity price – is the monetary value of a unit of product bought from a foreign country, valued at a geographic location of interest in the importing country".