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TWN Info Service on WTO and Trade Issues (Nov05/22)

29 Nov 2005


EFFECT OF THE APPLICATION OF THE SWISS FORMULA ON TARIFF LINES AND LEVELS: EXAMPLES OF COEFFICIENTS FROM 5 TO 200

Attached is a set of tables setting out data on how tariff lines will be affected by different coefficients under the Swiss formula in the NAMA negotiations.

The tables provide the situation under coefficients 5, 10, 15, 20 etc to 200.

For each of the coefficients, the table has three columns, i. e. the initial bound tariffs, the final tariffs (after the formula cut) and the percentage reduction.

The table enables the reader to quickly see the effect that each coefficient will have on specific tariff lines.

Another way to use the tables is to start with an objective of a certain percentage cut for a particular tariff line, and then to see which coefficient will be needed to give that percentage reduction.

For example, if the initial tariff line selected is 45%, and what is desired is a 20% reduction (i. e. to a final tariff of 36%), then the coefficient needed to produce this result is 180.

It will be seen from this table that with a low coefficient (eg 10, 15), there will be very sharp cuts in tariff lines especially for those in the higher levels.

It can also be seen that if the tariff lines are moderately high (eg 30 to 50 percent or more), in order to have moderate reductions (20 or 30 per cent), a high coefficient has to be chosen.

With best wishes
Martin Khor
TWN


Download tables [.doc]

 


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