Import Quota

Import Quota and the GATT Policy Negotiations

In relation to the GATT Policy Negotiations, Christopher Mark (1993) provided the following explanation and/or definition of Import Quota: A means of restricting or controlling imports by specifying the quantity or value of a commodity, which may be imported during a specified period. Such restrictions may take the form of “global” or “basket quotas” –limiting total imports from all sources, without differentiating among originating countries –or of country-specific, “allocated quotas” in which producing countries may be assigned a portion of the total quantity permitted to be imported. Some global quotas contain sub-quotas designating individual limits for various supplier countries. Import quotas result in protection that tends to be more predictable than with a tariff, and can thus be “fine- tuned” by governments. As with a tariff, domestic producers protected by a quota are able to charge higher prices, and there are some efficiency losses –but these are not offset by the additional government revenue that a tariff provides, so that a greater deadweight loss (Sec.ll) results. See also quantitative restrictions and tariff quota.

Import Quota Auctioning and the GATT Policy Negotiations

In relation to the GATT Policy Negotiations, Christopher Mark (1993) provided the following explanation and/or definition of Import Quota Auctioning: The process of allocating the right to import a product subject to quantitative restrictions by auctioning the quota among potential importers. Through the auction proceeds, the importing government can extract some of the revenue it might otherwise obtain by levying a tariff on the goods in question.

Import Quota in International Trade

Meaning of Import Quota, according to the Dictionary of International Trade (Global Negotiator): A protective ruling establishing limits o the quantity of a particular product that can be imported. Quotas are a means of restricting imports by the issuance of licenses to importers, assigning each a quota after determination of the total amount of any commodity that is to be imported during a period of time. Import licenses may also specify the country from which the importer must purchase the goods. See export quota; tariff quotas.