Quantitative (trade) restrictions cost the United States three times what the protection-equivalent tariff would cost--because two-thirds of the higher cost to consumers goes straight to foreign producers. Why the giveaway to foreigners? United states producers have a louder voice than US consumers, and foreing producers lobby aggressively to face a quaota rather than a tariff--and thus get a higher price in the US market.
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INFORMATION
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1992/10/31
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Fiche
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21630
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1
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1
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2001/03/10
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Disclosed
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The high costs of U.S. quantitative restrictions
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quantitative restriction
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