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Tariff rate quotas and the economic impacts of agricultural trade liberalization in the WTO

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  • Herrmann, Roland
  • Kramb, Marc
  • Mönnich, Christina

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 1300 TRQs scheduled at the WTO, it seems worthwhile to examine their economic effects more closely. This is what this paper does. First, the theoretical background of TRQs is examined. Then a short overview of the Uruguay Round as their institutional background is given. We demonstrate that official statistics, which do not count TRQs as non-tariff 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.

Suggested Citation

  • Herrmann, Roland & Kramb, Marc & Mönnich, Christina, 2000. "Tariff rate quotas and the economic impacts of agricultural trade liberalization in the WTO," Discussion Papers 1, Justus Liebig University Giessen, Center for international Development and Environmental Research (ZEU).
    • Handle: RePEc:zbw:zeudps:26466
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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. Anderson, Kym, 2000. "Agriculture, Developing Countries, And The WTO Millennium Round," CEPR Discussion Papers 2437, C.E.P.R. Discussion Papers.
    3. 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, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 26(3), pages 371-388, August.
    4. Herrmann Roland, 1999. "Economic Impacts of the New European Banana Market Regime: The Case of Germany / Ökonomische Auswirkungen der neuen Bananenmarktordnung: Das Beispiel Deutschland," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 218(1-2), pages 63-84, February.
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