Tariff quota
Tariff quota: the application of a reduced tariff rate for a specified quantity of imported goods. Imports above this specified quantity face a higher tariff rate. Some claim that tariff quotas liberalize trade since, in contrast to import quotas, there is no ceiling on imports under this system. This assumption can be quite erroneous. The difference between the in-quota tariff and the out-of-quota tariff often is so large as to preclude any trade at the higher rate. See also current access tariff quotas and minmum access tariff quotas.
Source: http://ctrc.sice.oas.org/trc/WTO/Documents/Dictionary%20of%20trade%20%20policy%20terms.pdf
Web site to visit: http://ctrc.sice.oas.org
Author of the text: W. Goode
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