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The Economics Of Two-Tier Tariff-Rate Import Quotas In Agriculture

Author

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  • Boughner, Devry S.
  • de Gorter, Harry
  • Sheldon, Ian M.

Abstract

This paper analyzes the economics of two-tier tariff import quotas (TRQs) and implications of alternative trade liberalization scenarios. The Uruguay Round Agreement on Agriculture had tariffs replace nontariff barriers as the protective mechanism while quotas ensured minimum trade flows. Our framework isolates the effects of changes either in the second-tier tariff, and first-tier tariff, or the quota. We show how market conditions or relative policy instrument levels determine which tariff or quota affects trade and domestic and world prices. Whether or not exporting countries have been allocated export quotas and the procedures for the distribution of the rights to export and import also influences the efficiency of TRQs.

Suggested Citation

  • Boughner, Devry S. & de Gorter, Harry & Sheldon, Ian M., 2000. "The Economics Of Two-Tier Tariff-Rate Import Quotas In Agriculture," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 29(1), April.
  • Handle: RePEc:ags:arerjl:31326
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    File URL: http://purl.umn.edu/31326
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    References listed on IDEAS

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    1. Moschini, Giancarlo, 1991. "Economic issues in tariffication: an overview," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 5(2), June.
    2. Skully, David W., 1999. "The Economics Of Trq Administration," Working Papers 14584, International Agricultural Trade Research Consortium.
    3. Spencer, Barbara J., 1997. "Quota licenses for imported capital equipment: Could bureaucrats ever do better than the market?," Journal of International Economics, Elsevier, vol. 43(1-2), pages 1-27, August.
    4. Anderson, James E, 1985. "The Relative Inefficiency of Quotas: The Cheese Case," American Economic Review, American Economic Association, vol. 75(1), pages 178-190, March.
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    Cited by:

    1. Franziska Junker & Thomas Heckelei, 2012. "TRQ‐complications: who gets the benefits when the EU liberalizes Mercosur's access to the beef markets?," Agricultural Economics, International Association of Agricultural Economists, vol. 43(2), pages 215-231, March.
    2. Frank van Tongeren & John Beghin & Stéphane Marette, 2009. "A Cost-Benefit Framework for the Assessment of Non-Tariff Measures in Agro-Food Trade," OECD Food, Agriculture and Fisheries Papers 21, OECD Publishing.
    3. Gouel, Christophe & Mitaritonna, Cristina & Ramos, Maria Priscila, 2011. "Sensitive products in the Doha negotiations: The case of European and Japanese market access," Economic Modelling, Elsevier, vol. 28(6), pages 2395-2403.
    4. Himics, Mihály & Britz, Wolfgang, 2016. "Flexible and welfare-consistent tariff aggregation over exporter regions," Economic Modelling, Elsevier, vol. 53(C), pages 375-387.

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    Keywords

    International Relations/Trade;

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