Import Quota

An import quota is a government-imposed limit on the quantity of a specific product that can be brought into a country over a certain period. By restricting the amount of imports, countries aim to protect local industries from foreign competition, maintain price stability, and ensure supply security for domestic consumers. Quotas can lead to higher prices for consumers and can affect trade relationships. They differ from tariffs, which are taxes on imports, as quotas directly limit quantities rather than increasing costs.