Agricultural tariff rate quotas implementation in the EU 1997-2002 ; Do developing countries enjoy quota rent?
AbstractTariff rate quotas (TRQs) have been introduced and legitimised as a market access instrument in the Uruguay Round Agreement on Agriculture (URAA). TRQs combine both restriction of imports, and safeguard of current or preferential agricultural trade flows. By restricting the market access through high level tariff beyond the quota, one can imagine that exporters enjoying low level tariff would take share of quota rent. Do developing exporting countries benefit from EU TRQs? Do they enjoy quota rents or guaranteed market access? What should be their interest to defend about TRQs at WTO agricultural negotiations? This article aims to present an analysis of the 87 EU's agricultural TRQs implementation from 1997 to 2002, in order to bring to the fore the effects of such an import instrument for exporting countries in competition on the import market. Some theoretical elements of the economy of TRQs are first presented in order to introduce the empirical work. The database built is then used to interpret EU agricultural TRQs implementation during the period 1997-2002, and the global results in terms of potential total rent that one can theoretically expect from TRQs is detailed by products grouping and export country grouping. A first examination of the database shows that while preference margin is potentially high for TRQs as a whole, potential rent is not so high. Moreover, this potential rent seems to be concentrated on only bananas and sugar, because TRQs are actually binding for those two commodities. A focus on those products indicates that only few exporting countries are susceptible to enjoy this potential rent: Latin American for bananas and ACP for sugar. However that does not signify that TRQs may be eliminated without big losses for exporters: they actually procure guaranteed EU's market shares protected from foreign competition.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by European Association of Agricultural Economists in its series 106th Seminar, October 25-27, 2007, Montpellier, France with number 7910.
Date of creation: 2007
Date of revision:
tariff rate quotas; quota rent; developing countries; International Relations/Trade;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Alan Matthews & Cathie Laroche Dupraz, 2001. "Agricultural Tariff Rate Quotas as a Developement Instrument," Economie Internationale, CEPII research center, issue 87, pages 89-106.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.