The WTO has encouraged nations to replace their import quotas with tariffs. Why?

Question

Quizplus · Accepted Answer

Quotas result in larger losses than tariffs with equivalent protection because quotas limit the quantity of imports, creating a shortage that drives up prices and reduces consumer surplus. In contrast, tariffs increase the price of imports, reducing consumer surplus but also generating revenue for the government. A switch to tariffs therefore enables countries to achieve protectionism at a lower cost to society.

The WTO Has Encouraged Nations to Replace Their Import Quotas