A graphical analysis of the functioning of tariff rate quotas: market access and welfare effects for exporting countries
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This paper analyses the economics of tariff rate quotas assuming a large importing country and several different suppliers with differing levels of competitiveness. Eleven theoretical situations are distinguished according to the way the quota is allocated to exporters, the level of constraint imposed by the quota and the relative competitiveness of export suppliers. A graphical analysis is developed and the effects of tariff rate quotas on market access and welfare gains for exporters are discussed in the eleven cases.