IDEAS home Printed from https://ideas.repec.org/a/eee/agecon/v19y1998i3p257-267.html
   My bibliography  Save this article

Tariff rate quotas: structural and stability impacts in growing markets

Author

Listed:
  • Abbott, Philip C.
  • Paarlberg, Philip L.

Abstract

This paper examines several aspects of tariff rate quotas (TRQ) as adopted during tariffication of agricultural policies under the Uruguay Round of GAIT. Quota rents and non‐tariff barrier effects may remain under TRQs, contrary to the objectives of the tariffication process. Further, price stability impacts of a TRQ are more complex than those for either tariffs or quotas, and under certain circumstances TRQs may be more stabilizing than either case, since TRQs truncate domestic production distributions much like price bands policies. This complexity results from the possibility of regime switching, and may reflect behavior under either a tariff, a quota, or a combination of cases. A TRQ policy may affect the timing of import decisions based on incentives created under quota allocation procedures envisioned for this institution. It may also allow increased imports as demand growth occurs because the quota is not necessarily a binding constraint. This means the above quota tariff is the critical policy instrument. An empirical study of Philippines port: imports illustrates these issues.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Abbott, Philip C. & Paarlberg, Philip L., 1998. "Tariff rate quotas: structural and stability impacts in growing markets," Agricultural Economics, Blackwell, vol. 19(3), pages 257-267, December.
    • Handle: RePEc:eee:agecon:v:19:y:1998:i:3:p:257-267
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0169-5150(98)00040-1
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Tyers,Rod & Anderson,Kym, 2011. "Disarray in World Food Markets," Cambridge Books, Cambridge University Press, number 9780521172318.
    2. Ingco, Merlinda D., 1995. "Agricultural trade liberalization in the Uruguay Round : one step forward, one step back?," Policy Research Working Paper Series 1500, The World Bank.
    3. A. C. Zwart & K. D. Meilke, 1979. "The Influence of Domestic Pricing Policies and Buffer Stocks on Price Stability in the World Wheat Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 61(3), pages 434-447.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lee, John G. & Paarlberg, Philip L. & Eales, James S., 2001. "Trade Policy Under Imperfect Competition: An Assessment Of The Trq On Lamb Meat," 2001 Annual Meeting, July 8-11, 2001, Logan, Utah 36076, Western Agricultural Economics Association.
    2. Carl GAIGNÉ & Cathie LAROCHE DUPRAZ & Alan MATTHEWS, 2015. "Thirty years of European research on international trade in food and agricultural products," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement, INRA Department of Economics, vol. 96(1), pages 91-130.
    3. Abbott, Philip C. & Morse, B. Adair, 2000. "Tariff Rate Quota Implementation And Administration By Developing Countries," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 29(1), pages 1-10, April.
    4. Gervais Jean-Philippe & Rude James I, 2003. "Some Unintended Consequences of TRQ Liberalization," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 1(1), pages 1-18, May.
    5. repec:ags:aoeisl:170467 is not listed on IDEAS
    6. Balié, Jean & Valera, Harold Glenn, 2020. "Domestic and international impacts of the rice trade policy reform in the Philippines," Food Policy, Elsevier, vol. 92(C).
    7. Garcia, Roberto J., 2003. "A Case Against The Simultaneous Use Of Market Access Restrictions, Domestic Support, And Export Subsidies," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25915, International Association of Agricultural Economists.
    8. Liapis, P. & Britz, W., 2002. "Modelling TRQs in multi-commodity models," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 37.
    9. Elbehri, Aziz & Pearson, Ken, 2000. "Implementing Bilateral Tariff Rate Quotas In Gtap Using Gempack," Technical Papers 28715, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    10. Lips, Markus & Rieder, Peter, 2002. "Endogenous adjusted Output Quotas - The Abolishment of the Raw Milk Quota in the European Union," Conference papers 330980, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    11. Rae, Allan N., 2001. "Trade In Livestock Products And The Wto Millenium Round: Projections To 2005 And Problems With Trq'S," 2001: International Trade in Livestock Products Symposium, January 2001, Auckland, New Zealand 14564, International Agricultural Trade Research Consortium.
    12. Oyewumi, Olubukola Ayodeju & Jooste, Andre & Britz, Wolfgang & van Schalkwyk, Herman D., 2007. "Tariff and Tariff Rate Quota Liberalization in the South African Livestock Industry: Approaches to Welfare Measurement," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 46(1), pages 1-22, March.
    13. Daria Loginova & Marco Portmann & Martin Huber, 2021. "Assessing the Effects of Seasonal Tariff‐rate Quotas on Vegetable Prices in Switzerland," Journal of Agricultural Economics, Wiley Blackwell, vol. 72(2), pages 607-627, June.
    14. de Gorter, Harry & Abbott, Philip C. & Barichello, Richard R. & Boughner, Devry S. & Bureau, Jean-Christophe & Choi, Jung-Sup & Coleman, Jonathan R. & Herrmann, Roland & Kramb, Marc Christopher & Shel, 2001. "Issues In Reforming Tariff-Rate Import Quotas In The Agreement On Agriculture In The Wto," Commissioned Papers 14617, International Agricultural Trade Research Consortium.
    15. Emlinger, Charlotte & Guimbard, Houssein, 2013. "Per-Unit Duties: Friends Or Foes Of Developing Country Exporters?," 135th Seminar, August 28-30, 2013, Belgrade, Serbia 160381, European Association of Agricultural Economists.
    16. Chang, Hung-Hao & Boisvert, Richard N. & Blandford, David, 2005. "Achieving Environmental Objectives Under Reduced Domestic Agricultural Support and Trade Liberalization: An Empirical Application to Taiwan," Agricultural and Resource Economics Review, Cambridge University Press, vol. 34(1), pages 16-31, April.
    17. Oyewumi, Olubukola Ayodeju, 2005. "Modeling tariff rate quotas in the South African livestock industry," Master's Degree Theses 28064, University of the Free State, Department of Agricultural Economics.
    18. Joerin, Robert, 2014. "Improving Market Access: The Role Of Auctions In Converting Tariff-Rate Quotas Into Single Tariffs," Review of Agricultural and Applied Economics (RAAE), Faculty of Economics and Management, Slovak Agricultural University in Nitra, vol. 17(1), March.
    19. Li, Xianghong & Carter, Colin A., 2005. "Agricultural Tariff Rate Quotas: Impacts on Market Access," 2005 Annual meeting, July 24-27, Providence, RI 19413, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    20. Houssein Guimbard & Sébastien Jean & Mondher Mimouni & Xavier Pichot, 2012. "MAcMap-HS6 2007, an Exhaustive and Consistent Measure of Applied Protection in 2007," International Economics, CEPII research center, issue 130, pages 99-122.
    21. 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.
    22. Chiedza L. Muchopa, 2021. "Economic Impact of Tariff Rate Quotas and Underfilling: The Case of Canned Fruit Exports from South Africa to the EU," Economies, MDPI, vol. 9(4), pages 1-17, October.
    23. Khorana, Sangeeta, 2008. "The Developmental Relevance of Tariff Rate Quotas as a Market Access Instrument: An Analysis of Swiss Agricultural Imports," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 9(2), pages 1-24.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mahia, R. & Arce, Rafael de & Escribano, Gonzalo, 2005. "La protección arancelaria al comercio agrícola mundial diez años después de la firma del acuerdo sobre agricultura de la Ronda Uruguay [Agricultural Trade Barriers 10 years later Uruguay Round Trad," MPRA Paper 10460, University Library of Munich, Germany.
    2. Baffes, John & Meerman, Jacob, 1998. "From Prices to Incomes: Agricultural Subsidization without Protection?," The World Bank Research Observer, World Bank, vol. 13(2), pages 191-211, August.
    3. Bernard Hoekman & Kym Anderson, 2000. "Developing-Country Agriculture and the New Trade Agenda," Economic Development and Cultural Change, University of Chicago Press, vol. 49(1), pages 171-180.
    4. Anderson, Kym, 2000. "Agriculture's 'multifunctionality' and the WTO," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 44(3), pages 1-20.
    5. Anderson, Kym, 1995. "Agricultural Competitiveness After the Uruguay Round," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 63(03), pages 1-12, December.
    6. David, Cristina C., 1999. "Constraints to Food Security: The Philippine Case," Discussion Papers DP 1999-31, Philippine Institute for Development Studies.
    7. David, Cristina C., 1997. "Agricultural policy and the WTO Agreement: The Philippine Case," Discussion Papers DP 1997-13, Philippine Institute for Development Studies.
    8. Weyerbrock, Silvia, 1998. "Reform of the European Union's Common Agricultural Policy: How to reach GATT-compatibility?," European Economic Review, Elsevier, vol. 42(2), pages 375-411, February.
    9. David, Cristina C., 1998. "Towards an Efficient Path to Food Security: The Philippine Case," Discussion Papers DP 1998-39, Philippine Institute for Development Studies.
    10. Tanner, Carolyn, 1996. "Agricultural Trade Liberalisation And The Uruguay Round," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 40(1), pages 1-35, April.
    11. Harvey, David R., 2003. "Policy Dependency And Reform: Economic Gains Versus Political Pains," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25865, International Association of Agricultural Economists.
    12. Rahman, Mustafizur, 1997. "Recent policy of trade liberalization in Bangladesh and issues of regional cooperation in South Asia," Journal of Asian Economics, Elsevier, vol. 8(1), pages 117-141.
    13. Unnevehr, Laurian J., 2000. "Food safety issues and fresh food product exports from LDCs," Agricultural Economics, Blackwell, vol. 23(3), pages 231-240, September.
    14. Lips, Markus & Rieder, Peter, 2002. "Endogenous adjusted Output Quotas - The Abolishment of the Raw Milk Quota in the European Union," Conference papers 330980, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    15. Hans Binswanger & Ernst Lutz, 2003. "Agricultural trade barriers, trade negotiations and the interests of developing countries," Chapters, in: John Toye (ed.), Trade and Development, chapter 8, Edward Elgar Publishing.
    16. Kym Anderson, 2006. "Reducing Distortions to Agricultural Incentives: Progress, Pitfalls, and Prospects," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(5), pages 1135-1146.
    17. Harvey, David R., 2004. "Policy dependency and reform: economic gains versus political pains," Agricultural Economics, Blackwell, vol. 31(2-3), pages 265-275, December.
    18. Martin, Will, 2021. "Tools for measuring the full impacts of agricultural interventions," IFPRI-MCC technical papers 2, International Food Policy Research Institute (IFPRI).
    19. Mahama, Ramatu, 1985. "A stochastic simulation of the impact of price insulation policies on world wheat market stability," ISU General Staff Papers 198501010800008868, Iowa State University, Department of Economics.
    20. Lloyd, P. J., 2001. "The architecture of the WTO," European Journal of Political Economy, Elsevier, vol. 17(2), pages 327-353, June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:agecon:v:19:y:1998:i:3:p:257-267. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.blackwell-synergy.com/loi/agec .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.