Swiss Formula

Swiss formula in Global Commerce Policy

In this regard, swiss formula is: a compromise formula for achieving linear tariff cuts proposed by Switzerland during the Tokyo Round. The entries on trade policy are here. It was intended to reduce higher tariffs by greater proportion than lower tariffs. The formula reads: Z=AX/A+X X represents the initial tariff rate, and A is a coefficient to be agreed on. Z is the resulting lower tariff rate. The European Economic Community, the Nordic countries and Australia used the coefficient 16, the United States, Japan and Switzerland 14. New Zealand used the item-by-item technique.[1]

Swiss formulain the wold Encyclopedia

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

Resources

Notes and References

1. Dictionary of Trade Policy, “Swiss formula” entry (OAS)

See Also