Tariff Rate Quotas (TRQs)

Tariff Rate Quotas (TRQs) are trade policy tools that regulate the import of specific goods. They set a limited quota of imports at a lower, more favorable tariff rate, allowing a certain volume of the product to enter more cheaply. Once this quota is filled, additional imports are taxed at a higher, less favorable rate. TRQs help protect domestic industries by controlling the volume of foreign goods entering at lower tariffs, balancing trade openness with industry support. They are commonly used in agricultural and other sensitive sectors to manage market access and domestic supply.