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U.S. Trqs For Peanuts, Sugar, And Tobacco: Historical Allocation And Nondiscrimination

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  • Skully, David W.

Abstract

U.S. peanut, sugar, and tobacco tariff rate quotas (TRQs) are allocated to suppliers on an historical market share basis. Once allocated they become difficult to redistribute to accommodate changes in comparative advantage among suppliers. The distribution of trade departs increasingly from the tariff-equivalent distribution advocated by the WTO principle of nondiscrimination. Article XIII of the GATT regarding the rules for historical allocation is examined and applied to four cases of historical allocation: domestic tobacco quota and TRQs for peanuts, sugar and tobacco. The difference between the law enforcement objective of the WTO and the Pareto optimization objective assumed by economists is stressed throughout.

Suggested Citation

  • Skully, David W., 2000. "U.S. Trqs For Peanuts, Sugar, And Tobacco: Historical Allocation And Nondiscrimination," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 29(1), pages 1-10, April.
    • Handle: RePEc:ags:arerjl:31328
    DOI: 10.22004/ag.econ.31328
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    References listed on IDEAS

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    1. Skully, David W., 1999. "The Economics Of Trq Administration," Working Papers 14584, International Agricultural Trade Research Consortium.
    2. Becker, Gary S., 1982. "Competition Among Pressure Groups for Political Influence," Working Papers 23, The University of Chicago Booth School of Business, George J. Stigler Center for the Study of the Economy and the State.
    3. Rucker, Randal R & Thurman, Walter N & Sumner, Daniel A, 1995. "Restricting the Market for Quota: An Analysis of Tobacco Production Rights with Corroboration from Congressional Testimony," Journal of Political Economy, University of Chicago Press, vol. 103(1), pages 142-175, February.
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    Cited by:

    1. Meilke, Karl D. & Rude, James & Burfisher, Mary E. & Bredahl, Maury E., 2001. "Market Access: Issues And Options In The Agricultural Negotiations," Commissioned Papers 14625, International Agricultural Trade Research Consortium.
    2. Larue, Bruno & Gervais, Jean-Philippe & Pouliot, Sebastien, 2007. "Should tariff-rate quotas mimic quotas?: Implications for trade liberalization under a supply management policy," The North American Journal of Economics and Finance, Elsevier, vol. 18(3), pages 247-261, December.
    3. Garcia, Roberto J., 2015. "No Way to Meet Commitments for Norway’s Meat Imports: An Assessment of WTO Disciplines on Market Access in Agriculture," Working Paper Series 03-2015, Norwegian University of Life Sciences, School of Economics and Business.

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