Discover and read the best of Twitter Threads about #tariffquotas

Most recents (1)

UK hit trade topic today: #TariffQuotas/#TariffRateQuotas

What are they?

One way to compromise between high protective tariffs and market access
⬇️
Low or zero duty for limited quantities (quotas). Beyond that high tariffs kick in—not “phased in” @nicholaswatt @BBCr4today

1/6
That way the two tariff levels allow some market access but keep it limited so some protection remains for local producers

It’s not the only way to compromise. Another: set a medium-level tariff for all imports of that product. But quantities would depend on supply & demand

2/6
Advantage of a tariff quota: the limit of low/zero duty imports is known. With a medium tariff it is not known.

Disadvantages: complexity in the way the govt hands out the quota among importers, and “quota rent”—benefits, sometimes huge, to those with a share of the quota

3/6
Read 8 tweets

Related hashtags

Did Thread Reader help you today?

Support us! We are indie developers!


This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3.00/month or $30.00/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!