Tariff Rate Quotas

Tariff Rate Quotas (TRQs) are trade measures that allow a certain quantity of a product to be imported at a lower tariff rate, while any imports exceeding that limit are subject to a higher tariff. This system aims to balance the interests of domestic producers and foreign exporters. For example, a country might allow 1,000 tons of cheese to be imported at a reduced tariff, but if more than that is imported, a higher tax applies. TRQs help manage trade, ensuring that local industries remain competitive while still providing access to foreign goods.