Tariff rate quotas and the economic impact of agricultural trade liberalization in the world trade organization

Roland Herrmann, Marc Kramb and Christina Mönnich

International Advances in Economic Research, 2001, vol. 7, issue 1, 19 pages

Abstract: Since their implementation at the Uruguay Round, tariff rate quotas (TRQs) have become a widely used instrument of trade policy in agricultural trade. With almost 1,300 TRQs scheduled at the World Trade Organization, this paper will examine their economic effects more closely. First, the theoretical background of TRQs is examined. Then, a short overview of the Uruguay Round and their institutional background is given. We demonstrate that official statistics, which do not count TRQs as nontariff barriers, are at least highly misleading. Very often, their effects are the same as those of regular quotas, including redistributive effects. The prominent example of the European banana regime is used to illustrate all of these points. Copyright International Atlantic Economic Society 2001

Date: 2001
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DOI: 10.1007/BF02296588

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