Formulas for Success? Some Options for Market Access Negotiations

Abstract

Most of the large tariff reductions achieved in multilateral trade negotiations have involved the use of tariff-cutting formulas, such as the “Swiss” formula. But the wide variations in initial tariff rates between active participants may create a demand for new approaches in the Doha Development Agenda. This paper surveys a range of formula options and examines new, flexible versions of the Swiss formula that might be used to target tariff escalation and peaks, and would allow policy makers to directly target how far they will move towards free trade, while providing some flexibility for trading off reductions in peak tariffs against reductions in lower-tariff sectors.tariff formulas, WTO, market access modalities