IDEAS home Printed from https://ideas.repec.org/a/ags/jordng/175743.html
   My bibliography  Save this article

How Much Is It Worth to Protect Sensitive Products with Tariff-Rate Quotas?―A Korean Case

Author

Listed:
  • Lim, Song-Soo
  • Babula, Ronald A.

Abstract

The tariff-rate quota (TRQ) system is a hybrid import regime that conveys both tariff- and quota-like characteristics. Established by the tariffication process during the Uruguay Round, TRQs harmonize the needs for improved market access and protection from import surges. This paper aims to identify economic and policy consequences from TRQ implementation and to test whether the trade-off between formula tariff cuts and quota expansion is adequate and thus is beneficial to the protection of declared sensitive products. Using Korea’s case of soybean imports, this paper illuminates the importance of quota administration in terms of mark-ups, economic rents and the state-trading enterprises (STEs). Application of a one-product partial equilibrium model to Korea’s soybean market suggests that it would be better for Korea to designate soybeans as a category of sensitive products. The derived quota equivalents under the option of sensitive products turn out to be smaller than otherwise. Examination of quota equivalents for formula tariff cuts indicates different proportionality or trade-offs among options. Finally, it concludes with potential areas to improve the TRQ administration under the WTO modalities.

Suggested Citation

  • 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.
    • Handle: RePEc:ags:jordng:175743
    DOI: 10.22004/ag.econ.175743
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/175743/files/35_5_2.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.175743?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Philip C. Abbott & Linda M. Young, 1999. "Wheat-Importing State Trading Enterprises: Impacts on the World Wheat Market," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 47(2), pages 119-136, July.
    2. 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.
    3. Timothy E. Josling & Stefan Tangermann & T. K. Warley, 1996. "Agriculture in the GATT," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-37890-2, September.
    4. Swinbank, Alan, 2004. "Dirty Tariffication Revisited: The EU and Sugar," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 5(1), pages 1-14.
    5. Monnich, Christina, 2003. "Tariff Rate Quotas: Does Administration Matter?," Discussion Papers 26465, University of Giessen, Center for International Development and Environmental Research.
    6. William A. Kerr & James D. Gaisford (ed.), 2007. "Handbook on International Trade Policy," Books, Edward Elgar Publishing, number 3521.
    7. Laborde, David & Martin, Will & Van Der Mensbrugghe, Dominique, 2012. "Implications of the Doha market access proposals for developing countries," World Trade Review, Cambridge University Press, vol. 11(1), pages 1-25, January.
    8. Mönnich, Christina, 2003. "Tariff rate quotas: Does administration matter?," Discussion Papers 16, Justus Liebig University Giessen, Center for international Development and Environmental Research (ZEU).
    9. 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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. 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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    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. Swinbank, Alan, 2004. "Dirty Tariffication Revisited: The EU and Sugar," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 5(1), pages 1-14.
    3. 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).
    4. 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.
    5. 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.
    6. Marie-Ange VEGANZONES-VAROUDAKIS, 2000. "Market Access, Export Subsidies, Domestic Support and the WTO Negociations: a Review and Synthesis," Working Papers 200008, CERDI.
    7. repec:kap:iaecre:v:16:y:2010:i:4:p:331-344 is not listed on IDEAS
    8. 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.
    9. Alan Matthews, 2000. "The WTO agricultural trade negotiations after Seattle," Trinity Economics Papers 20005, Trinity College Dublin, Department of Economics.
    10. 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).
    11. Adrian Kay & Robert Ackrill, 2008. "Institutional change in the international governance of agriculture: a revised account," NBS Discussion Papers in Economics 2008/4, Economics, Nottingham Business School, Nottingham Trent University.
    12. 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.
    13. Halmai, Peter & Elekes, Andrea, 2005. "CAP Reform in the Light of the WTO Doha Round Negotiations," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24693, European Association of Agricultural Economists.
    14. Rahman, Mustafizur, 1997. "Recent policy of trade liberalization in Bangladesh and issues of regional cooperation in South Asia," Journal of Asian Economics, Elsevier, vol. 8(1), pages 117-141.
    15. Hans Binswanger & Ernst Lutz, 2003. "Agricultural trade barriers, trade negotiations and the interests of developing countries," Chapters, in: John Toye (ed.), Trade and Development, chapter 8, Edward Elgar Publishing.
    16. Dixit, Praveen M. & Josling, Timothy E. & Blandford, David, 2001. "The Current Wto Agricultural Negotiations: Options For Progress; Synthesis," Commissioned Papers 14623, International Agricultural Trade Research Consortium.
    17. Chantal Le Mouël, 1999. "Élargissement à l'Est et négociations commerciales internationales : quelle marge de manœuvre pour la PAC ?," Économie et Statistique, Programme National Persée, vol. 329(1), pages 35-54.
    18. GAIGNE, Carl & LAROCHE DUPRAZ, Cathie & MATTHEWS, Alan, 2015. "Thirty years of European research on international trade in food and agricultural products," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement (RAEStud), Institut National de la Recherche Agronomique (INRA), vol. 96(1), March.
    19. Jacques Blanchet & Alain Revel & Alexandra Linglin & Nathalie Kosciusko-Morizet & Véronique Wormser, 1997. "L'intégration des PECO à la nouvelle PAC. Une double révolution inachevée," Économie rurale, Programme National Persée, vol. 240(1), pages 49-58.
    20. Lloyd, P. J., 2001. "The architecture of the WTO," European Journal of Political Economy, Elsevier, vol. 17(2), pages 327-353, June.
    21. Julián Tole Martínez, 2019. "Colombia entre los TLC y la OMC: ¿liberación o administración del comercio internacional?," Books, Universidad Externado de Colombia, Facultad de Derecho, number 1139.

    More about this item

    Keywords

    International Relations/Trade;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:jordng:175743. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/kreinkr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.