The Equivalence of Tariffs and Quotas under a Tariff-Rate Quota System: A Case Study of Rice Academic Article uri icon

abstract

  • This study examines the effect of tariff-rate quota (TRQ) expansions as have emerged from the international trade negotiations that are designed to ensure market access for many sensitive agricultural products. We extend the existing models on tariff-quota equivalence to a TRQ system. Our theoretical finding indicates that the equivalence of domestic price between out-quota tariff reduction and quota expansion depends on domestic producer's behavior and on the values of conjectural variation. An empirical spatial equilibrium model of international rice trade is used to examine the price and welfare impacts of replacing quota expansions with tariff reductions. 2011 Canadian Agricultural Economics Society.

published proceedings

  • CANADIAN JOURNAL OF AGRICULTURAL ECONOMICS-REVUE CANADIENNE D AGROECONOMIE

author list (cited authors)

  • Chen, C., Chang, C., & McCarl, B. A.

citation count

  • 5

complete list of authors

  • Chen, Chi-Chung||Chang, Ching-Cheng||McCarl, Bruce A

publication date

  • December 2011

publisher