Legal Definitions - import quota

An import quota is a restriction on the amount of a certain product that can be brought into a country from a foreign country. This means that only a certain amount of the product can be imported, and anything beyond that amount is not allowed.

• The United States may establish an import quota on steel from China if it is determined that the steel is being sold at unfairly low prices, which could harm the domestic steel industry.
• Japan may establish an import quota on rice from Thailand to protect its own rice farmers from competition.

These examples illustrate how import quotas can be used to protect domestic industries from foreign competition. By limiting the amount of a certain product that can be imported, the government can help ensure that domestic producers are not unfairly harmed by foreign competition.