delete CHFTA Sugar Aggregate Quantity Limit Order
Regulation sets aggregate quantity limits on specific sugar and sugar confectionery imports from Honduras under the Canada-Honduras free trade agreement, managing tariff rate quotas for designated tariff items during specified periods.
Import quotas artificially restrict supply, raise prices for Canadian consumers and businesses, create bureaucratic administration costs, and distort market allocation. Even within a trade agreement, quantitative limits protect domestic producers at the expense of consumer welfare and economic efficiency. The unseen cost includes reduced competition, rent-seeking behavior around quota allocation, and the deadweight loss from prevented mutually beneficial trades.