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What is a Tariff Rate Quota in an FTA?

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A Tariff Rate Quota (TRQ) allows a specified quantity of a product to be imported at a lower (in-quota) tariff rate. Above the quota, a higher (out-of-quota) rate applies. India-EU FTA will include TRQs for sensitive agricultural products — basmati rice, spices, processed food, and potentially dairy. TRQs are typically allocated on a first-come-first-served or licensed basis.

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