Table 2 - uploaded by Preceles Manzo
Content may be subject to copyright.
Source publication
Tariff rate quotas (TRQs) are one of the most widely used trade policy instruments in agricultural trade. The issue of whether TRQs are efficient trade policy instruments for improving market access has been widely debated. Some believe that TRQs impose an extra barrier to trade, circumvent the reforms sought under the General Agreement on Tariffs...
Similar publications
Arguably the most significant piece of the "July Package" concerns agricultural trade. The agreed framework lays out a map for the future elimination of all forms of export subsidies and for better disciplines on export credits, exporting state trading enterprises and food aid. It also introduces new commitments to discipline trade-distorting farm...
This paper provides an in-depth examination of the trade effects of three regional trade agreements (RTAs) – the ASEAN Free Trade Agreement (AFTA), the Common Market for Eastern and Southern Africa (COMESA) and the Southern Cone Common Market (MERCOSUR) -- in the agricultural sector. Results from a gravity model suggest that the creation of AFTA, C...
The objective of this paper is to evaluate the extend to which trade agreements affect agricultural trade policy volatility. Using a new panel database compiled as part of the World Bank's Agricultural Distortions research project, we estimate the effect of regionalism (proxied in various ways) on the volatility of price distortions measured by the...
China is potentially an important global trader of agri- cultural commodities, a role that will become more pronounced following the country's World Trade Organization (WTO) accession. At various times during the 1990s, China imported as much as 17 percent of the world's traded wheat, 25 percent of its fertilizer, and 28 percent of its soybean oil,...
Citations
... Currently, 43 World Trade Organization members have a total of 1425 tariff quotas in their commitments [41]. TRQs are widely utilized especially in agricultural trade [22] for products such as: milk and dairy products, bananas, chocolate, sugar, beef, peanuts, eggs, poultry, soybeans, potatoes, among others. In fact, the world's four most important food crops: rice, wheat, corn, and bananas, have all been subject to tariff rate quotas (cf. ...
... Hence, both Steps 1 and 2 of the modified projection method above [cf. (22) and (23)] result in closed form expressions for the product trade flows as well as the economic rent equivalents at each iteration, as given below. ...
... We now present the closed form expressions for the solution of the variational inequality subproblems (22). Similar ones for (23) can be analogously constructed. ...
In this paper, we develop a global supply chain network model in which profit-maximizing firms engage in competition in the production and distribution of products in the presence of quantitative trade policy instruments in the form of tariff rate quotas. Tariff rate quotas are two-tiered tariffs, in which a lower in-quota tariff is applied to the units of imports until a quota or upper bound is attained and then a higher over-quota tariff is applied to all subsequent imports. They are utilized to protect domestic producers in the case of a wide range of products, from agricultural ones to fabrics and even steel, and can be challenging to formulate. We construct the governing set of novel equilibrium conditions associated with the product flows and Lagrange multipliers, which correspond to quota rent equivalents, and derive the variational inequality formulation. Qualitative properties are presented along with an effective algorithm, which is then applied to compute solutions to numerical examples comprising an agricultural product case study on avocados and global trade. This work is the first to model and solve general, competitive supply chain network problems consisting of oligopolistic firms with multiple production sites and demand markets in multiple countries subject to tariff rate quotas.
