TRQs and the WTO

Abstract

By virtue of their complexity and sensitivity, TRQs have naturally emerged as one of the key issues in the WTO agricultural negotiations. TRQs form an uneasy compromise between market access and tariffication. TRQs applying countries with a-strong track record ofp rotectionism have a difficult problem at hand, when it comes to designing these mechanisms. Indeed the task of balancing national interests with international obligations on market access is a key challenge to trade policy formulation in the developing world. TRQs that meet the criteria of uniformity, equity and transparency may achieve WTO compatibility, though it is doubtful whether they would serve the economic development priorities of the developing countries.

This paper attempts to look into the prospects and options before India in designing WTO compatible TRQ regimes for agricultural commodities. The paper also examines key issues concerning TRQs that need to be taken up in the forthcoming round ofWTO negotiations.