Also known as: TRQ, Import quota with preferential tariff
A maximum quantity of merchandise that can be imported or exported at a reduced or zero tariff during a given period, with the general tariff applying to quantities exceeding the quota.
A tariff-rate quota (TRQ) is a trade policy mechanism establishing a limit on the quantity of goods that can be imported or exported at a preferential tariff (usually reduced or zero). Once the quota is exhausted, additional imports of the same product pay the general MFN tariff. TRQs are established in free trade agreements, bilateral accords, or by unilateral decision for sensitive products such as agricultural goods, textiles, or steel. Mexico's Ministry of Economy administers TRQs.
Tariff-Rate Quota (TRQ)
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.
TariffsImport Quota
The maximum quantity of a product that can be imported at a preferential tariff rate during a specific period; beyond this, the MFN rate applies.
TariffsMFN Tariff (Most Favored Nation)
The maximum tariff rate a WTO member country applies to imports from any other member, guaranteeing equal treatment without discrimination among trading partners.
TariffsPreferential Tariff Rate
A reduced or zero duty rate applied to imports from countries with which a free trade agreement or other preferential arrangement is in effect.