U.S. TRQS FOR PEANUTS, SUGAR, AND TOBACCO: HISTORICAL ALLOCATION AND NONDISCRIMINATION

U.S. peanut, sugar, and tobacco tariff rate quotas (TRQs) are allocated to suppliers on an historical market share basis. Once allocated they become difficult to redistribute to accommodate changes in comparative advantage among suppliers. The distribution of trade departs increasingly from the tariff-equivalent distribution advocated by the WTO principle of nondiscrimination. Article XIII of the GATT regarding the rules for historical allocation is examined and applied to four cases of historical allocation: domestic tobacco quota and TRQs for peanuts, sugar and tobacco. The difference between the law enforcement objective of the WTO and the Pareto optimization objective assumed by economists is stressed throughout.


Issue Date:
2000-04
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/31328
Published in:
Agricultural and Resource Economics Review, Volume 29, Number 1
Page range:
81-90
Total Pages:
10




 Record created 2017-04-01, last modified 2017-08-24

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