TRQ:- Tariff Rate Quota
TRQ stands for Tariff Rate Quota. A Tariff Rate Quota is a two-tiered international trade tariff that combines two policy instruments used historically to protect domestic production by restricting imports. The two-tiered structure includes Import Quota and Tariffs respectively. The Import Quota is set at a Quantitative threshold for a designated time period for imports of a protected domestic item. When imports are below the Quota the tariffs are either extremely low is practically non-existent. But when the import crosses the quota then the tariffs are significantly high are actually set as the prohibitive measure to intentionally dissuade from importing above the import quota. The TRQs have been required by the WTO since the 1995 Uruguay Round Agreement. In a Tariff Rate Quota, the Quota component works together with a specified tariff level to provide the necessary or desired level of import protection to the domestic products.
