The Economics Of Two-Tier Tariff-Rate Import Quotas In Agriculture
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.
Volume (Year): 29 (2000)
Issue (Month): 1 (April)
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- Moschini, GianCarlo, 1991.
"Economic Issues in Tariffication: An Overview,"
Staff General Research Papers
814, Iowa State University, Department of Economics.
- Moschini, Giancarlo, 1991. "Economic issues in tariffication: an overview," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 5(2), June.
- Moschini, Giancarlo, 1991. "Economic issues in tariffication: an overview," Agricultural Economics, Blackwell, vol. 5(2), pages 101-120, June.
- GianCarlo Moschini, 1991. "Economic Issues in Tariffication: An Overview," Food and Agricultural Policy Research Institute (FAPRI) Publications 90-gatt1, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University.
- Moschini, GianCarlo & Mehrkens, Joseph, 1991. "Economic Issues in Tariffication: An Overview," Staff General Research Papers 12751, Iowa State University, Department of Economics.
- GianCarlo Moschini, 1991. "Economic Issues in Tariffication: An Overview," Center for Agricultural and Rural Development (CARD) Publications 90-gatt1, Center for Agricultural and Rural Development (CARD) at Iowa State University.
- Skully, David W., 1999. "The Economics Of Trq Administration," Working Papers 14584, International Agricultural Trade Research Consortium.
- Barbara J. Spencer, 1996.
"Quota Licenses for Imported Capital Equipment: Could Bureaucrats Ever DoBetter than the Market?,"
NBER Working Papers
5695, National Bureau of Economic Research, Inc.
- 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.
- Anderson, James E, 1985. "The Relative Inefficiency of Quotas: The Cheese Case," American Economic Review, American Economic Association, vol. 75(1), pages 178-90, March.
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