2004•Palgrave Macmillan UK eBooksOpen access

The Value of Agricultural Tariff Rate Quotas to Developing Countries

Cathie Laroche Dupraz, Alan Matthews

Abstract

The use of tariff rate quotas (TRQs) was legitimized as a market-access instrument in the Uruguay Round Agreement on Agriculture (AoA). TRQs are defined by three characteristics: the quota volume, the in-quota tariff and the over-quota tariff (which is the MFN tariff). Only one of these characteristics is binding at any one time. The motivation behind this instrument was to guarantee minimum levels of market access and to safeguard current levels of access in the face of the high MFN tariffs resulting from tariffication; 1371 TRQs were notified by 37 countries to the WTO as a result of the Uruguay Round (G/AG/NG/5/7).1

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Key concepts: Tariff, Market access, Agriculture, International economics, Business, Agreement on Agriculture, Value (mathematics), International trade