“Tariff quotas” refer to a trade policy mechanism that provides preferential tariff concessions for a predetermined volume of goods. Under a tariff quota system, a specific quantity of goods can be imported at a lower or zero tariff rate, while any imports beyond that predetermined volume are subject to a higher tariff rate. Tariff quotas are designed to strike a balance between promoting international trade and protecting domestic industries. They incentivize the importation of goods up to a specific limit, supporting market access for certain products while maintaining control over the level of imports. Tariff quotas often arise as part of bilateral or multilateral trade agreements and are intended to promote fair trade practices and stimulate economic cooperation between countries.

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