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Tariff rate quotas: Does administration matter?

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  • Mönnich, Christina

Abstract

At the Uruguay Round, tariff rate quotas (TRQs) were intended to serve two purposes: first, to prevent that tariffication would lead – at least on the short term – to a deterioration of market access and second, to create new, minimum market access. The since then observed fill rates do not match with these intentions, being often rather low. A wide-held suspicion explains this with tariff quota administration imposing an extra barrier to trade. It is the aim of this paper to test whether different administrative methods do indeed contribute to explain variation in fill rates and if so, how. A censored regression model for panel data was developed and applied to the EU’s TRQs for the years 1995–2000. The data supported the presumption that administration matters, sometimes in surprising ways.

Suggested Citation

  • Mönnich, Christina, 2003. "Tariff rate quotas: Does administration matter?," Discussion Papers 16, Justus Liebig University Giessen, Center for international Development and Environmental Research (ZEU).
    • Handle: RePEc:zbw:zeudps:26465
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    1. Jean-Philippe Gervais & David Surprenant, 2000. "An Economic Investigation of the Import Licensing Methods and TRQs in Agriculture," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 48(4), pages 397-410, December.
    2. Honore, Bo E, 1992. "Trimmed LAD and Least Squares Estimation of Truncated and Censored Regression Models with Fixed Effects," Econometrica, Econometric Society, vol. 60(3), pages 533-565, May.
    3. Ingco, Merlinda D., 1995. "Agricultural trade liberalization in the Uruguay Round : one step forward, one step back?," Policy Research Working Paper Series 1500, The World Bank.
    4. Powell, James L., 1984. "Least absolute deviations estimation for the censored regression model," Journal of Econometrics, Elsevier, vol. 25(3), pages 303-325, July.
    5. Alan Matthews & Cathie Laroche Dupraz, 2001. "Agricultural Tariff Rate Quotas as a Developement Instrument," Economie Internationale, CEPII research center, issue 87, pages 89-106.
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    Cited by:

    1. Oyewumi, Olubukola Ayodeju, 2005. "Modeling tariff rate quotas in the South African livestock industry," Master's Degree Theses 28064, University of the Free State, Department of Agricultural Economics.
    2. Pascal Ghazalian & Ryan Cardwell, 2010. "Did the Uruguay Round Agreement on Agriculture Affect Trade Flows? An Empirical Investigation for Meat Commodities," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 16(4), pages 331-344, November.
    3. Bowen Chen & Nelson B. Villoria & Tian Xia, 2020. "Tariff quota administration in China's grain markets: An empirical assessment," Agricultural Economics, International Association of Agricultural Economists, vol. 51(2), pages 191-206, March.
    4. repec:kap:iaecre:v:16:y:2010:i:4:p:331-344 is not listed on IDEAS
    5. Li, Xianghong & Carter, Colin A., 2005. "Agricultural Tariff Rate Quotas: Impacts on Market Access," 2005 Annual meeting, July 24-27, Providence, RI 19413, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Yoon, Jung-hyun & Lim, Song Soo, 2013. "Potential trade distortion effects of state trading enterprises under the tariff-rate quota scheme," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 7, pages 1-19.
    7. Lim, Song-Soo & Babula, Ronald A., 2013. "How Much Is It Worth to Protect Sensitive Products with Tariff-Rate Quotas?―A Korean Case," Journal of Rural Development/Nongchon-Gyeongje, Korea Rural Economic Institute, vol. 35(5), pages 1-26, January.
    8. Yoon, Jung-Hyun & Lim, Song Soo, 2013. "Potential trade distortion effects of state trading enterprises under the tariff-rate quota scheme," Economics Discussion Papers 2013-22, Kiel Institute for the World Economy (IfW Kiel).
    9. 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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