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In addition, the VFA is hoping for a rice export deal with the Republic of Korea via the Tariff Rate Quotas (TRQs) system.
'Japan is also a very promising market for Pakistan's leather products but in this sector as well Pakistani products face an average tariff of 16% along with Tariff Rate Quotas which is higher than that offered to India and Bangladesh thus rendering Pakistan's Leather products in-competitive', the Minister added.
"The sheep sector has huge potential, but the report recommends that the sector is protected from distorting trade imports and existing tariff rate quotas should not be extended.
The US imports Philippine sugar under so-called tariff rate quotas, which permit purchases at a favorable tariff level from countries such as top producer Brazil, Thailand and others.
The deal will also create two tariff rate quotas (TRQs) for EU cheese entering Canada, one for 16,800 tonnes of "quality" cheese and another for 1,700 tonnes of "industrial" cheese.
The tariff rate quotas (ie where zero, or low tariffs are applied) given to US producers are just 5,000 tonnes a year.
In this context, the EU had amended the original scheme to use tariff rate quotas (TRQs) on 20 products rather than full liberalisation in its revised draft submitted on Jan 20 with the WTO secretariat.
Twenty products of the package are subject to tariff rate quotas [TRQs] and will be eligible for import into EU duty free up to a specified quantitative limit.
The EU presented a revised request for a waiver on trade preferences for 75 products from Pakistan, which it said now included 20 on which tariff rate quotas would be applied instead of full liberalization.
Competing textile exporters such as Brazil, India, Indonesia and Bangladesh had opposed the plan but dropped their objections after the EU amended the scheme to use tariff rate quotas (TRQs) on 20 products rather than full liberalisation.
KORUS FTA defines four mechanisms for establishing better access for agricultural products: (1) the immediate opening of certain markets without restrictions, (2) the phase-out of tariffs over a specified number of years, (3) the expansion of tariff rate quotas (TRQs), with the phase-out of over-quota tariffs and (4) the imposition of safeguard measures (USTR 2008) (table 4).
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