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Agricultural Market Access Under Tariff-Rate Quotas

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  • Beckman, Jayson
  • Gale, Fred
  • Lee, Tani

Abstract

Forty World Trade Organization (WTO) members have established 1,125 agricultural tariff-rate quotas (TRQs). TRQs are a two-tiered tariff scheme (a lower rate under a quota amount, and a higher rate once that is reached), developed during multilateral trade negotiations in the 1990s to facilitate market access for agricultural trade. This report provides data and analysis on the prevalence of these trade measures. TRQs are classified according to indicators of whether market access is constrained by administrative procedures or nontariff measures that prevent the quota from filling or by the quota itself. This analysis found that 13 percent of TRQs were “underutilized” when imports were less than 65 percent of the quota (a low “fill rate”), even though the cost of imports was less than the domestic price. Another 22 percent of TRQs were classified as “binding” when the fill rate was high and the import cost was less than the domestic commodity rice. Issues have been raised in the WTO regarding some of these TRQs, with the largest number of questions about transparency and administration of quotas.

Suggested Citation

  • Beckman, Jayson & Gale, Fred & Lee, Tani, 2021. "Agricultural Market Access Under Tariff-Rate Quotas," Agricultural Economic Reports 308595, United States Department of Agriculture, Economic Research Service.
    • Handle: RePEc:ags:uerser:308595
    DOI: 10.22004/ag.econ.308595
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    References listed on IDEAS

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    1. Jayson Beckman & Shawn Arita, 2017. "Modeling the Interplay between Sanitary and Phytosanitary Measures and Tariff-rate Quotas under Partial Trade Liberalization," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 99(4), pages 1078-1095.
    2. Skully, David W., 2001. "Economics of Tariff-Rate Quota Administration," Technical Bulletins 184332, United States Department of Agriculture, Economic Research Service.
    3. Gibson, Paul R. & Wainio, John & Whitley, Daniel B. & Bohman, Mary, 2001. "Profiles Of Tariffs In Global Agricultural Markets," Agricultural Economic Reports 34055, United States Department of Agriculture, Economic Research Service.
    4. Skully, David W., 2001. "Economics Of Tariff-Rate Quota Administration," Technical Bulletins 33576, United States Department of Agriculture, Economic Research Service.
    5. Philip C. Abbott, 2002. "Tariff-rate quotas: failed market access instruments?," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 29(1), pages 109-130, March.
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    1. Beckman, Jayson & Ivanic, Maros & Shaik, Saleem, 2022. "How Bilateral Trade Deals Get in the Way of Multilateral Agreements," Conference papers 333437, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    2. Beckman, Jayson & Gale, Fred & Morgan, Stephen & Sabala, Ethan & Ufer, Danielle & Valcu-Lisman, Adriana & Zeng, Wendy & Arita, Shawn, 2022. "China's Import Potential for Beef, Corn, Pork, and Wheat," Amber Waves:The Economics of Food, Farming, Natural Resources, and Rural America, United States Department of Agriculture, Economic Research Service, vol. 2020(Economic ), August.
    3. Beckman, Jayson & Ivanic, Maros & Shaik, Saleem, 2023. "How bilateral trade deals get in the way of multilateral agreements: Why WTO is marginalized," Journal of Policy Modeling, Elsevier, vol. 45(5), pages 877-894.
    4. Jelliffe, Jeremy & Gerval, Adam & Husby, Megan & Jarrell, Philip & Williams, Brian, 2023. "United Kingdom Agricultural Production and Trade Policy Post-Brexit," USDA Miscellaneous 333547, United States Department of Agriculture.
    5. Jafari, Yaghoob & Britz, Wolfgang & Guimbard, Houssein & Beckman, Jayson, 2021. "Properly capturing tariff rate quotas for trade policy analysis in computable general equilibrium models," Economic Modelling, Elsevier, vol. 104(C).
    6. Gale, Fred, 2021. "Potential Wheat Demand in China: Applicants for Import Quota," USDA Miscellaneous 313487, United States Department of Agriculture.

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