Tariffikiintiöt

Tariffikiintiöt, known in English as tariff rate quotas or TRQs, are a trade policy tool used by countries to regulate the import of certain goods. They combine elements of both tariffs and quotas. Under a TRQ, a specific quantity of a good can be imported at a lower tariff rate. However, once this quota is reached, any additional imports of the same good are subject to a higher tariff rate.

These quotas are typically set for agricultural products, but can also be applied to other goods. The primary purpose of TRQs is to provide a degree of protection to domestic industries while still allowing for a certain level of international trade. For example, a country might implement a TRQ on imported sugar to support its domestic sugar producers. A certain amount of sugar can be imported annually with a low duty. If more sugar is imported beyond that limit, a significantly higher duty is applied, making it less attractive for foreign producers to flood the market.

TRQs are often negotiated as part of international trade agreements, such as those within the World Trade Organization (WTO). They represent a compromise between free trade principles and the need for national governments to manage their economies and protect specific sectors. The size of the quota and the difference between the in-quota and out-of-quota tariff rates are key elements that determine the effectiveness and impact of a TRQ. They are a common feature in agricultural trade policies worldwide.