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U.S. TRQs for Peanuts, Sugar, and Tobacco: Historical Allocation and Nondiscrimination

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  • Skully, David

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 ΧIII 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, 2000. "U.S. TRQs for Peanuts, Sugar, and Tobacco: Historical Allocation and Nondiscrimination," Agricultural and Resource Economics Review, Cambridge University Press, vol. 29(1), pages 81-90, April.
    • Handle: RePEc:cup:agrerw:v:29:y:2000:i:01:p:81-90_00
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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. 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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