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The tariff equivalent of tariff-rate quotas - A case study applied to the import of an agricultural product in Romania

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  • Petru Catalin Bodea

    () (Al. I. Cuza University Faculty of Economics and Business Administration Ph.D. student in International Economic Relatins CP 119, OP1, Iasi, Romania)

Abstract

The paper presents one methodology of calculating the tariff equivalent of the tariff-rate quota as a particular case of a non-tariff barrier for an agricultural product imported in Romania based on recommendations in international literature. The tariff equivalent of tariff-rate quota of imports from the EU is approximately 35%, lower than the tariff outside the quota. Nonetheless this is considerable higher when compared with the Common External Tariff (CET). Elimination of the nominal protection level as consequence of the adoption the CET is expected to stimulate imports pressure especially from price competitive import partners both from EU (such as Slovakia, Belgium, Austria, Czech Republic and Italy) and non EU countries (Serbia, Bosnia and Herzegovina, Macedonia and Croatia). A basic model forecasts that, with the lowered protection, annual imports will rise with at least 13.5 thousand tonnes, thus an increase of 23% compared with the average annual imports during 1990-2005.

Suggested Citation

  • Petru Catalin Bodea, 2008. "The tariff equivalent of tariff-rate quotas - A case study applied to the import of an agricultural product in Romania," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 1, pages 159-169, December.
  • Handle: RePEc:aic:revebs:y:2008:v:1:p:159-169
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    References listed on IDEAS

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    1. repec:wsi:wschap:9789812701350_0012 is not listed on IDEAS
    2. Enrico Colombatto, 2000. "An Explanation of the Dynamics of Protectionism," Open Economies Review, Springer, vol. 11(3), pages 279-293, July.
    3. Peter Walkenhorst & Barbara Fliess, 2003. "Non-Tariff Measures Affecting EU Exports: Evidence From a Complaints-Inventory," OECD Economics Department Working Papers 373, OECD Publishing.
    4. Michael Ferrantino, 2006. "Quantifying the Trade and Economic Effects of Non-Tariff Measures," OECD Trade Policy Papers 28, OECD Publishing.
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