A protectionist regulation setting a maximum number of
imports for a certain good over a given period of time, usually a year. For example, if a country wants to encourage domestic production of automobiles, it might set a limit on how many foreign cars may be brought into the country each year. While import quotas were once a relatively common form of
protectionism, the 1995 renegotiation of the
General Agreement on Tariffs and Trade put tougher international restrictions on them. Critics allege that import quotas, in addition to depriving the state of
tariff revenue, lead to corruption (in the form of
bribing customs agents) and
smuggling. Many
economists therefore believe that import quotas are less
efficient than tariffs.