GLOSSARY

Quota

A government-imposed trade restriction limiting the number or value of goods a country can import or export during a specific period.

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What is Quota?

A quota is a government-imposed limit on the quantity of a good or service that can be imported or exported.

There are two main types of quotas: absolute quotas and tariff-rate quotas.

Absolute quotas set a fixed limit on the quantity of a good or service that can be imported or exported.

Tariff-rate quotas set a lower limit on the quantity of a good or service that can be imported or exported, and a higher limit that’s subject to a higher tariff.

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