Skip to main content Accessibility help
×
Home

U.S. TRQs for Peanuts, Sugar, and Tobacco: Historical Allocation and Nondiscrimination

  • David Skully (a1)

Abstract

U.S. peanut, sugar, and tobacco tariff rate quotas (TRQs) are allocated to suppliers on an historical market share basis. Once allocated they become difficult to redistribute to accommodate changes in comparative advantage among suppliers. The distribution of trade departs increasingly from the tariff-equivalent distribution advocated by the WTO principle of nondiscrimination. Article ΧIII of the GATT regarding the rules for historical allocation is examined and applied to four cases of historical allocation: domestic tobacco quota and TRQs for peanuts, sugar and tobacco. The difference between the law enforcement objective of the WTO and the Pareto optimization objective assumed by economists is stressed throughout.

Copyright

References

Hide All
Becker, Gary S. 1982. “A Theory of Competition Among Pressure Groups for Political Influence.” Quarterly Journal of Economics 98(3): 371400.
Capehart, Tom. 1997. “The Tobacco Progam: a Summary and Update.” In, Tobacco: Situation and Outlook Report, Market and Trade Economics Division, Economic Research Service, U.S. Department of Agriculture, April (TBS-238):31-34.
Capehart, Tom. 1999. “Tobacco Products.” In, Tobacco: Situation and Outlook Report, Market and Trade Economics Division, Economic Research Service, U.S. Department of Agriculture, September (TBS-244):4-9.
Daniel, Pete. 1985. Breaking the Land: The Transformation of Cotton, Tobacco, and Rice Culture Since 1880. University of Illinois Press.
Hudec, Robert E. 1997. “Tiger, Tiger in the House: a Critical Appraisal of the Case Against Discriminatory Trade Measures.” In, Implementing the Uruguay Round, Jackson, John H. and Sykes, Alan O., Eds. 167212. Clarendon Press.
Jackson, John H. 1969. World Trade and the Law of the GATT. Bobbs-Merrill.
Nourse, Edwin G., Davis, Joseph S., and Black, John D. 1937. Three Years of the Agricultural Adjustment Administration. The Brookings Institution.
Rucker, Randal R., Thurman, Walter N., and Sumner, Daniel A. 1995. Restricting the Market for Quota: an Analysis of Tobacco Production Rights with Corroboration from Congressional Testimony. Journal of Political Economy 103(1): 142175.
Skully, D. 1998. “Auctioning the Tariff Quota for U.S Sugar Imports.” In, Sugar and Sweetener: Situation and Outlook Report. Market and Trade Economics Division, Economic Research Service, U.S. Department of Agriculture, May (SSS-223):17-22.
Skully, D. 1999a. “The Economics of TRQ Administration.” International Agricultural Trade Research Consortium Working Paper 99-6, May.
Skully, D. 1999b. “U.S. Tariff Rate Quotas for Peanuts.” In, Oil Crops Yearbook. Market and Trade Economics Division, Economic Research Service, U.S. Department of Agriculture, October (OCS-1999):45-53
Trela, Irene and Whalley, John. 1995. Internal Quota Allocation Schemes and the Costs of the MFA. Review of International Economics 3(3): 284306.
U.S. General Accounting Office (GAO). Resources, Community, and Economic Development Division. 1999. “Sugar Program: Changing the Method for Setting Import Quotas Could Reduce Cost to Users.” GAO/RCED-99-209.

Metrics

Full text views

Total number of HTML views: 0
Total number of PDF views: 0 *
Loading metrics...

Abstract views

Total abstract views: 0 *
Loading metrics...

* Views captured on Cambridge Core between <date>. This data will be updated every 24 hours.

Usage data cannot currently be displayed