Linear Tariff Cuts

Linear tariff cuts in Global Commerce Policy

In this regard, linear tariff cuts is: also known as formula approach. These are tariff cuts of equal magnitude, usually expressed in percentage points, across whole classes of products. They were first introduced formally into multilateral trade negotiations during the Kennedy Round (1963-67), but the EEC’s initial offer in the Dillon Round (1960) also envisaged them. The main reason this method was not adopted before the Kennedy Round was the lack of United States negotiating authority for doing so. The United States rejected linear tariff cuts for the Uruguay Round. See also Swiss formula which was used in the Tokyo Round tariff negotiations.[1]

Linear tariff cutsin the wold Encyclopedia

For an introductory overview on international trade policy, see this entry.

Resources

Notes and References

1. Dictionary of Trade Policy, “Linear tariff cuts” entry (OAS)

See Also