The way tariff rate quotas influence our agricultural markets
How will the free trade agreement between the EU and Canada affect German dairy producers? Whether they can extend their exports to Canada under CETA – this is one of the questions we examine in this project.
In recent years, the EU concluded more and more trade agreements. While tariff protection decreases, the number and importance of non-tariff trade barriers increases. This includes tariff rate quotas, which are part of several trade agreements. They combine two tariffs: Within a quota, imports are usually duty-free. By the same token, exceeding the quota quantity results in a higher tariff. In this project we investigate the importance that tariff rate quotas have in international agricultural trade and how they influence the results of free trade agreements such as CETA.
The objectives of our project are:
By the example of the free trade agreement between the EU and Canada, different methodologies of modelling tariff rate quotas are developed and compared. In the context of CETA, Canada implemented a quota for dairy products from the EU. Within this quota, the EU can export to Canada free of duty. In return, the EU introduced a quota for pork and beef as well as sweetcorn. The impacts of CETA on trade flows, production quantities and tariff revenues will be assessed with the help of the general equilibrium model MAGNET. The developed methodologies will later be used for the assessment of other trade agreements.
The thematic orientation of this project is the question for the importance of tariff rate quotas in international agricultural trade and how they influence the results of free trade agreements. For this we analyze
11.2017 - 5.2021