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Brexit and Tariff Rate Quotas on EU Imports: A Complex Problem

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  • Brian J. Revell

Abstract

Tariff rate quotas (TRQs) are a means by which non‐EU suppliers of agri‐food products can be given preferential access to EU markets within a regulated framework of quotas at tariff rates below the Most Favoured Nation rates bound in the GATT. TRQs are common in governing trade in the meat and dairy sectors of the EU, although they apply to a wide range of other agricultural commodity and processed agri‐food products. Brexit poses a complex set of problems regarding TRQs in terms of how the respective parties should divide up jointly undertaken commitments within the WTO, since TRQs have been negotiated by the Commission on behalf of all EU Member States. Whilst individual quota allocations can be allocated to specific third country suppliers, individual Member States receive no specific allocation of the global product TRQ either in total, or from any named preferential supplier. The article outlines the nature of TRQs in the meat and dairy sectors of the EU, and how a simple partitioning of existing quotas between the EU‐27 and the UK is unlikely to resolve the complex issue of access rights of third countries to both markets. Possible solutions are explored, including the potential need for reciprocal EU‐27–UK TRQs post Brexit. Les quotas tarifaires sont un moyen d'accorder aux fournisseurs de produits agroalimentaires en dehors de l'Union européenne un accès préférentiel aux marchés communautaires au sein d'un cadre réglementé de quotas à des tarifs inférieurs aux taux consolidés de la nation la plus favorisée dans le cadre du GATT. Les quotas tarifaires sont courants dans les échanges de viande et de produits laitiers de l'Union européenne, mais ils s'appliquent également à une large gamme d'autres produits agricoles primaires et produits agroalimentaires transformés. Le Brexit pose un ensemble de problèmes complexes pour les quotas tarifaires concernant la façon dont les parties respectives devraient se répartir des engagements pris conjointement au sein de l’OMC, puisque les quotas tarifaires ont été négociés par la Commission de la part de tous les états membres. Si les quotas individuels peuvent être alloués à des pays tiers fournisseurs particuliers, les états membres individuels ne reçoivent pas une partie identifiée du quota tarifaire global par produit, ni pour l'ensemble des fournisseurs à taux préférentiel, ni pour l'un entre eux nommément identifié. L'article décrit la nature des quotas tarifaires dans les secteurs de la viande et des produits laitiers de l'Union européenne et souligne que la simple répartition des quotas actuels entre l'Union à 27 et le Royaume‐Uni est sans doute incapable de résoudre la question complexe des droits d'accès des pays tiers aux deux marchés. Des solutions alternatives sont explorées, y compris le recours éventuel à des quotas tarifaires entre l'Union à 27 et le Royaume‐Uni après le Brexit. Zollquoten sind ein Instrument, mit dem Nicht‐EU‐Anbietern von Agrar‐ und Ernährungsgütern präferenzieller Zugang zu den EU‐Märkten eingeräumt werden kann. Die Zölle innerhalb der Quoten können unterhalb der MFN‐Zölle (Most Favoured Nation – MFN) des GATT liegen. Zollquoten sind im Handel mit Fleisch‐ und Milchprodukten der EU üblich, obwohl sie auch bei anderen landwirtschaftlichen Erzeugnissen und verarbeiteten Produkten der Agrar‐ und Ernährungswirtschaft vorkommen. Der Brexit bringt komplexe Probleme für die Zollquoten mit sich. Da Zollquoten für alle EU‐Mitgliedsstaaten von der Europäischen Kommission ausgehandelt worden sind, müssen nun die jeweiligen Seiten gemeinsame Verpflichtungen im Rahmen der WTO unter sich aufteilen. Während individuelle Quotenanpassungen speziellen Drittlandanbietern zugeordnet werden können, ist eine Zuordnung zu den einzelnen Mitgliedsstaaten weder im Ganzen noch von benannten bevorzugten Anbietern möglich. Der vorliegende Beitrag beschreibt die Zollquoten in den Sektoren für Fleisch‐ und Milchprodukte der EU und zeigt auf, dass eine einfache Aufteilung der existierenden Quoten zwischen der EU‐27 und dem Vereinigten Königreich nicht ausreicht, um die komplexe Frage nach Zugangsrechten für Drittländer zu beiden Märkten zu beantworten. Mögliche Lösungen werden untersucht, einschließlich der potenziellen Notwendigkeit für reziproke Zollquoten zwischen der EU‐27 und dem Vereinigten Königreich nach dem Brexit.

Suggested Citation

  • Brian J. Revell, 2017. "Brexit and Tariff Rate Quotas on EU Imports: A Complex Problem," EuroChoices, The Agricultural Economics Society, vol. 16(2), pages 10-17, August.
  • Handle: RePEc:bla:eurcho:v:16:y:2017:i:2:p:10-17
    DOI: 10.1111/1746-692X.12157
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    References listed on IDEAS

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    1. Bureau, Jean-Christophe & Tangermann, Stefan, 2000. "Tariff Rate Quotas in The EU," Agricultural and Resource Economics Review, Cambridge University Press, vol. 29(1), pages 70-80, April.
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    1. Himics, Mihaly & Listorti, Giulia & Tonini, Axel, 2020. "Simulated economic impacts in applied trade modelling: A comparison of tariff aggregation approaches," Economic Modelling, Elsevier, vol. 87(C), pages 344-357.
    2. Alan Swinbank, 2022. "The UK’s Agri‐food Trade Policies One Year On From Brexit," EuroChoices, The Agricultural Economics Society, vol. 21(2), pages 11-18, August.
    3. Siemen van Berkum & Roel Jongeneel & Myrna van Leeuwen, 2018. "Brexit's Agri‐trade Impacts on the Netherlands," EuroChoices, The Agricultural Economics Society, vol. 17(2), pages 38-46, August.
    4. Nogues, Julio, 2018. "Brexit trade impacts and Mercosur's negotiations with Europe," MPRA Paper 87416, University Library of Munich, Germany.
    5. Alan Matthews, 2017. "Brexit Impacts on Irish Agri‐food Exports to the UK," EuroChoices, The Agricultural Economics Society, vol. 16(2), pages 26-32, August.

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