Explanation:

Tariff Rate Quota (TRQ)

• It is a mechanism that allows a set quantity of specific products to be imported at a low or zero rate of duty.
• They are established under trade agreements between countries.
• The TRQ commitment does not apply any limits on the quantity of import of a product.
• Instead, it applies a higher rate of duty for that specific product once imports up to the TRQ commitment have been reached.
• TRQ is a two-tiered tariff instrument.