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Tariff rate quotas and the economic impact of agricultural trade liberalization in the world trade organization

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  • Roland Herrmann
  • Marc Kramb
  • Christina Mönnich

Abstract

Since their implementation at the Uruguay Round, tariff rate quotas (TRQs) have become a widely used instrument of trade policy in agricultural trade. With almost 1,300 TRQs scheduled at the World Trade Organization, this paper will examine their economic effects more closely. First, the theoretical background of TRQs is examined. Then, a short overview of the Uruguay Round and their institutional background is given. We demonstrate that official statistics, which do not count TRQs as nontariff barriers, are at least highly misleading. Very often, their effects are the same as those of regular quotas, including redistributive effects. The prominent example of the European banana regime is used to illustrate all of these points. Copyright International Atlantic Economic Society 2001

Suggested Citation

  • Roland Herrmann & Marc Kramb & Christina Mönnich, 2001. "Tariff rate quotas and the economic impact of agricultural trade liberalization in the world trade organization," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 7(1), pages 1-19, February.
  • Handle: RePEc:kap:iaecre:v:7:y:2001:i:1:p:1-19:10.1007/bf02296588
    DOI: 10.1007/BF02296588
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    References listed on IDEAS

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    1. Stefan Tangermann, 1996. "Implementation Of The Uruguay Round Agreement On Agriculture: Issues And Prospects," Journal of Agricultural Economics, Wiley Blackwell, vol. 47(1‐4), pages 315-337, January.
    2. Stanley R. Thompson & Roland Herrmann & Wolfgang Gohout, 2000. "Agricultural Market Liberalization and Instability of Domestic Agricultural Markets: The Case of the CAP," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(3), pages 718-726.
    3. Timothy E. Josling & Stefan Tangermann & T. K. Warley, 1996. "The Uruguay Round Agreement on Agriculture," Palgrave Macmillan Books, in: Agriculture in the GATT, chapter 8, pages 175-216, Palgrave Macmillan.
    4. Hudec, Robert E., 1998. "Does The Agreement On Agriculture Work? Agricultural Disputes After The Uruguay Round," Working Papers 14612, International Agricultural Trade Research Consortium.
    5. U. Koester, 1977. "The redistributional effects of the common agricultural financial system," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 4(4), pages 321-345.
    6. Josling, Tim & Tangermann, Stefan, 1999. "Implementation of the WTO Agreement on Agriculture and Developments for the Next Round of Negotiations," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 26(3), pages 371-388, August.
    7. Satish Y. Deodhar & Ian M. Sheldon, 1995. "Is Foreign Trade (Im)Perfectly Competitive?: An Analysis Of The German Market For Banana Imports," Journal of Agricultural Economics, Wiley Blackwell, vol. 46(3), pages 336-348, September.
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    Cited by:

    1. Nikolaos Sariannidis, 2011. "Stock, Energy and Currency Effects on the Asymmetric Wheat Market," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 17(2), pages 181-192, May.
    2. Daria Loginova & Marco Portmann & Martin Huber, 2021. "Assessing the Effects of Seasonal Tariff‐rate Quotas on Vegetable Prices in Switzerland," Journal of Agricultural Economics, Wiley Blackwell, vol. 72(2), pages 607-627, June.
    3. Chiedza L. Muchopa, 2021. "Economic Impact of Tariff Rate Quotas and Underfilling: The Case of Canned Fruit Exports from South Africa to the EU," Economies, MDPI, vol. 9(4), pages 1-17, October.

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