Consider the following statements regarding Tariff Rate Quotas (TRQs) as a trade-policy instrument under Free Trade Agreements:

Statements

1. Under a TRQ mechanism, imports within the stipulated quota volume attract a lower (in-quota) tariff rate, while imports exceeding that volume are subject to the standard Most Favoured Nation (MFN) tariff or a higher out-of-quota rate.
2. TRQs under an FTA are typically administered by the country's export promotion body, as the quota is a concession granted to domestic exporters seeking foreign markets.
3. A TRQ is consistent with WTO rules because it does not eliminate the tariff on a product category altogether; it merely grants preferential access up to a defined quantity at a reduced rate, preserving some protection beyond that threshold.