An import quota is a limit on the quantity of a good that can be produced abroad and sold domestically.

The primary goal of import quotas is to reduce imports and increase domestic production of a good, service, or activity, thus “protect” domestic production by restricting foreign competition. 

As the quantity of importing the good is restricted, the price of the imported good increases, thus encourages consumers to purchase more domestic products. 
In general, a quota is simply a legal quantity restriction placed on a good imported that is imposed by the domestic government.


A trade agreement (also known as trade pact) is a wide ranging tax, tariff and trade treaty that often includes investment guarantees. 

The most common trade agreements are of the preferential and free trade types are concluded in order to reduce (or eliminate) tariffs, quotas and other trade restrictions on items traded between the signatories.


article taken from wikipedia