Tariffs, quotas and piecemeal policy reform

This paper extends recent results on the welfare implications of piecemeal tariff adjustments to include cases where the initial trade distortions involve both tariffs and quotas. It shows that the standard prescriptions for piecemeal tariff reform are largely unaffected by the presence of unalterable quotas on other goods. Prescriptions for piecemeal quota reform are also derived, although they are constrained by the presence of unalterable tariffs.