Economy / Foreign Trade / Quantitative Restrictions.
Quantitative Restrictions.
- QRs are measures, other than tariffs, that restrict exports or imports.
- Types of QRs include quotas, licensing requirements, and canalization.
- WTO rules generally discourage QRs, especially when there are no severe Balance of Payments (BOP) pressures.
- WTO encourages members to convert QRs into tariffs for transparency and predictability.
- Converting QRs into tariffs allows for customs revenue, helps the economy face competition, and offers advantages to those who can afford imports.
Conclusion: Non-Tariff Barriers, while subject to scrutiny and regulation by the WTO, continue to be employed by countries for various purposes, impacting the global trade landscape. Efforts to reduce and convert such barriers into transparent mechanisms align with the goals of promoting fair and open international trade.
