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Formula Approaches for Market Access Negotiations

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  • Joseph Francois
  • Will Martin

Abstract

Most of the large tariff reductions achieved in multilateral trade negotiations have involved tariff–cutting formulas such as the ‘Swiss’ formula. However, wide variations in initial tariff rates between active participants 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 policy makers 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.

Suggested Citation

  • Joseph Francois & Will Martin, 2003. "Formula Approaches for Market Access Negotiations," The World Economy, Wiley Blackwell, vol. 26(1), pages 1-28, January.
  • Handle: RePEc:bla:worlde:v:26:y:2003:i:1:p:1-28
    DOI: 10.1111/1467-9701.00507
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    References listed on IDEAS

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    1. World Bank, 2001. "Global Economic Prospects and the Developing Countries 2001," World Bank Publications, The World Bank, number 14779.
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    More about this item

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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