DP3720 Formula Approaches for Market Access Negotiations

Author(s): Joseph Francois, Will Martin
Publication Date: January 2003
Keyword(s): market access, tariff formulas, WTO
JEL(s): F10, F13
Programme Areas: International Trade and Regional Economics
Link to this Page: cepr.org/active/publications/discussion_papers/dp.php?dpno=3720

Most of the large tariff reductions achieved in multilateral trade negotiations have involved tariff-cutting formulas such as the ?Swiss? formula. Wide variations in initial tariff rates between active participants, however, call for new approaches under the Doha Development Agenda. This Paper surveys a range of formula options and examines both targeted and flexible applications of the Swiss formula that target tariff escalation and peaks, and would allow policymakers 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.