TariffsTRQ
Tariff-Rate Quota (TRQ)
Also known as: Import quota, Tariff quota
A quota or determined volume of goods that can be imported at a reduced preferential tariff; once the quota is exhausted, additional imports pay the higher general tariff.
Also known as: Import quota, Tariff quota
A quota or determined volume of goods that can be imported at a reduced preferential tariff; once the quota is exhausted, additional imports pay the higher general tariff.
A tariff-rate quota (TRQ) is a trade mechanism allowing a determined volume of goods to be imported at a low preferential tariff (in-quota rate). Once that volume is exhausted, any additional imports of the same product pay the full general tariff (over-quota rate), which is usually significantly higher. It is a common tool in the agricultural sector to balance trade openness with domestic producer protection.
In-quota: low or zero tariff (within quota). Over-quota: high general tariff (outside quota). Example: powdered milk with a quota of 50,000 tons at 0%; additional tons pay 45%.
Tariff-rate quotas are administered by Mexico's Ministry of Economy through quota allocation. Importers must apply for quota participation and meet established requirements. Allocation may be by chronological order, auction, import history, or other criteria.
Preferential Tariff Rate
A reduced or zero tariff applied to goods originating from countries with which Mexico has a free trade agreement in force, provided they meet the agreement's rules of origin.
TradeUSMCA (T-MEC)
Trade agreement between the United States, Mexico, and Canada that replaced NAFTA in July 2020, governing trade, investment, and intellectual property rules.
TariffsAd Valorem Tariff
An import duty calculated as a percentage of the customs value of goods. It is the most common type of tariff in international trade.
TradeFree Trade Agreement (FTA)
International agreement that eliminates or reduces tariffs and trade barriers between signatory countries.