Quotas

Quotas are government-imposed limits on the quantity or value of goods imported or exported during a specified period. They protect domestic industries and regulate trade volume.

Governments use quotas to control the amount of foreign goods in the market. Examples include limits on steel imports, automobile exports, and agricultural products.

Quotas can target specific countries. Instances include textile quotas on Chinese imports and car export restrictions to the EU.

Different types of quotas include tariff-rate quotas, global quotas, and bilateral quotas. Tariff-rate quotas allow a set quantity at a lower tariff, with a higher tariff for quantities beyond. Global quotas limit imports from all countries. Bilateral quotas restrict trade between two countries.