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Market access in the WTO is highly fragmented due to exceptions from GATT principles. Tariff-rate quotas (TRQs) stand in contradiction to the principle of the GATT, according to which all quantitative restrictions in international trade should be eliminated. Bhagwati’s theorem of the non-equivalence of tariffs and quotas leads to the conclusion tha...
Contexts in source publication
Context 1
... interest now are the results obtained by auctions in the meat market with a view to converting TRQs into single tariffs. For the purpose of interpretation, it is helpful to use the simple TRQ model as a benchmark (Figure 3). In this model, both tariffs -the in- quota tariff and the out-of quota tariff -build the staircase-shaped import supply function (ES). ...
Context 2
... In the case of a binding TRQ where the in-quota tariff is relatively low and the out-of quota tariff high (Figure 3) an indirect path has to be chosen because the level of the single tariff is not known. As described in section 3 auctions can help to determine the level of the tariffs. ...
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Citations
... 6 For the majority of fruits and vegetables, a so-called administeredthat is, protected -5 A more extensive description of the Swiss agricultural market and the implications of agricultural trade regulations can be found in Gray et al. (2017). 6 Preferential tariff rates for some country groups exist (see Jörin and Lengwiler, 2004;Khorana, 2008;Jörin, 2014). ...
Causal estimation of the short‐term effects of tariff‐rate quotas (TRQs) on vegetable producer prices is hampered by the large variety and different growing seasons of vegetables and is therefore rarely performed. We quantify the effects of Swiss seasonal TRQs on domestic producer prices of a variety of vegetables based on a difference‐in‐differences estimation using a novel dataset of weekly producer prices for Switzerland and neighbouring countries. We find that TRQs increase prices of most vegetables by more than 20% above the prices in neighbouring countries during the main harvest time for most vegetables and even more than 50% for some vegetables. The effects are stronger for more perishable vegetables and for conventionally produced ones compared with organic vegetables. However, we do not find clear‐cut effects of TRQs on the week‐to‐week price volatility of vegetables although the overall lower price volatility in Switzerland compared with neighbouring countries might be a result of the TRQ system in place.
... 6 For the majority 5 A more extensive description of the Swiss agricultural market and the implications of agricultural trade regulations can be found in Gray et al. (2017). 6 Preferential tariff rates for some country groups exist (see Jörin and Lengwiler, 2004;Khorana, 2008;Jörin, 2014). ...
Causal estimation of the short-term effects of tariff-rate quotas (TRQs) on vegetable producer prices is hampered by the large variety and different growing seasons of vegetables and is therefore rarely performed. We quantify the effects of Swiss seasonal TRQs on domestic producer prices of a variety of vegetables based on a difference-indifferences estimation using a novel dataset of weekly producer prices for Switzerland and neighbouring countries. We find that TRQs increase prices of most vegetables by more than 20% above the prices in neighbouring countries during the main harvest time for most vegetables and even more than 50% for some vegetables. The effects are stronger for more perishable vegetables and for conventionally produced ones compared with organic vegetables. However, we do not find clear-cut effects of TRQs on the week-to-week price volatility of vegetables although the overall lower price volatility in Switzerland compared with neighbouring countries might be a result of the TRQ system in place.
Export trade provided for under tariff rate quotas (TRQs) is an important contributor to improving South Africa’s export access to European markets. The performance of exporter-administered TRQs has not received much research attention in the context of the below par market access utilisation of a given opportunity. The present study analysed how the country performed in terms of utilising its TRQ for canned pears, apricots, and peaches provided by the European Union (EU) for the period 2010 to 2019. The permit allocation system for TRQs in South Africa is described for further understanding of aspects of the TRQ system likely to affect quota fill. Performance was assessed in terms of yearly quota utilisation rates as well as welfare measured in equivalent variation calculated in a computable general equilibrium (CGE) trade model. The analysis found that the canned fruit TRQ exhibited a fill rate average of 61% for the past 10 years (2010–2019) and 49% for the period 2015–2019, thus falling far short of the goal of achieving full market access availed by the EU within the protocols of liberalised trade. The welfare effects of trade liberalisation confirmed the underutilisation of the TRQ indicated by a welfare loss, considering the difference in gains of an underutilised quota (USD 2497) and a fully utilised quota (USD 2530). The study highlights the importance of full utilisation of preferences.
