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GTAP Resource #7706

"TRQ–HS: A New High-Resolution Quota Module for GTAP-HS"
by Antimiani, Alessandro, Edoardo Iannetti and Antti Simola


Abstract
This paper develops a TRQ-HS extension of the GTAP-HS framework by incorporating tariff-rate quotas (TRQs) into a global computable general equilibrium model with HS-level product detail. The main motivation is that standard sectoral aggregation in global CGE models is often too coarse for the analysis of trade policies implemented at the tariff-line level, particularly when protection combines within-quota and over-quota tariff rates with quantitative import constraints. In such settings, both the composition of trade across HS products and the regime-switching nature of TRQs matter for simulation results.

The contribution of the paper is twofold. First, it builds on the GTAP-HS approach to split GTAP sectors into their HS components, preserving database consistency while allowing for a more precise representation of bilateral trade flows and tariff heterogeneity. Second, it embeds a TRQ module formulated through complementarity conditions in GEMPACK, making it possible to represent binding and non-binding quota regimes, endogenous regime switching, quota rents, and the interaction between tariff wedges and import volumes within a unified equilibrium structure.

By combining HS-level disaggregation with an explicit treatment of TRQs, the TRQ-HS framework extends the policy relevance of GTAP-based modeling for applications where detailed border measures are central. The model is particularly suited to the analysis of selective trade liberalization, agricultural market access, and negotiated trade reforms, where results depend critically on both the fine structure of protection and the nonlinear effects generated by tariff-rate quotas. Overall, the framework provides a practical bridge between detailed trade policy instruments and global CGE analysis.


Resource Details () GTAP Keywords
Category: 2026 Conference Paper
Status: Not published
By/In:
Date:
Version:
Created: Iannetti, E. (4/8/2026)
Updated: Iannetti, E. (4/8/2026)
Visits: 8
- Multilateral trade negotiations
- Preferential trading arrangements


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