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The high costs of U.S. quantitative restrictions (English)

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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The high costs of U.S. quantitative restrictions (English). Washington, D.C. : World Bank Group.