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18Dec/20Off

Tariff Agreements Reduce

This paper empirically examines the extent to which free trade agreements (EEAs) successfully reduce tariffs and non-tariff barriers in the manufacturing sector by using bilateral tariff and NTB data in a time series for countries around the world. We note that, in accordance with GATT Article XXIV and the enabling clause, free trade agreements contribute to a reduction in tariffs of 2.1% and 1.5% respectively. For NB, their respective effects are 6.6% and 5.7% of the points. Membership of the World Trade Organization (WTO) does not contribute significantly to tariff reductions, but plays an important role in reducing NB. These results have a significant impact on the literature on numerical assessments of free trade agreements. Keywords: non-tariff barriers; Free trade agreement JEL classification: F10; F13; F15 Negotiate a much narrower gap between high and low tariffs with an integrated maximum tariff. The Swiss formula is a particular method of harmonization. It uses only one mathematical formula to produce: while virtually all economists believe that free trade is desirable, they differ on how best to move from tariffs and quotas to free trade. The three fundamental approaches to trade reform are one-sided, multilateral and bilateral. As a general rule, the necessary cuts are then subdivided into equal annual steps. The forum was proposed by Switzerland during the Tokyo Round negotiations of 197379. But Switzerland opposes this method in the ongoing agricultural negotiations; it prefers the Uruguay Round approach, while Uruguay prefers the Swiss formula! A key feature is a number negotiated and inserted into the formula.

It is called coefficient (A in the following formula). The maximum final rate is thus set. There will also be fewer products that impose high tariffs. The share of imports from all sources of tariffs in industrialized countries will increase from 7% to 5%. The share of exports from developing countries, which face tariffs of more than 15% in industrialized countries, will increase from 9% to 5%. In 1995, GATT became the World Trade Organization (WTO), which now has more than 140 member states. The WTO controls four international trade agreements: the GATT, the General Agreement on Trade in Services (GATS) and the Trade-Related Intellectual Property Rights and Trade Investment Agreement (TRIPS and TRIMS). The WTO is now the forum for members to negotiate the removal of trade barriers; The most recent forum is the Doha Development Round, launched in 2001. There are many other approaches to rate reduction formulas.

See WTO document TN/MA/S/3/Rev.2, Formula Approaches for Customs Negotiations (revision), 11 April 2003, prepared by the Secretariat for negotiations on non-agricultural market access. Only time will tell whether the trend towards regional trade agreements is good for the global economy. Of course, they are beneficial to their respective participants; on the one hand, they receive preferential treatment from other members. But some questions need to be answered in more detail. Do regional agreements, for example, bring the world closer to global free trade - to a market where goods and services can be traded anywhere without barriers? in which X - initial tariff A - coefficient and maximum tariff Z - lower tariff rate (end of period) resulting, there is no doubt that the reduction in tariffs has many economic benefits. WTO proponents highlighted their positive results by referring to cost-of-living reductions, increased incomes and improved efficiency.

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