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World Trade Organization Toolkit : Tariff Concessions

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Progressive Reduction of Tariffs Through Successive Rounds of Negotiations

Tariff concessions were made for the first time during the negotiations of the original GATT 1947. Tariffs were then further reduced through successive rounds of negotiations. The table below illustrates the achievement of the successive tariff reductions in the GATT history (J.JACKSON, The World Trading System, 1999, p.74). The tariff averages refer to tariffs on non-primary products of industrial countries.

The method used for the tariff reduction has not been the same in the various rounds of negotiations.

During the first five rounds of negotiations (i.e. before the Kennedy Round), tariff reductions were negotiated on an item-by-item basis. The system was that each country had to prepare a "request list" of tariff concessions desired. Each country had also to prepare an "offer list" in which it stated which concession it was ready to make. The process was thus fundamentally bilateral. Even if successful, this process was very complex and in later years became increasingly cumbersome.

During the sixth round (Kennedy Round) and seventh round (Tokyo Round), tariff negotiations were mainly conducted on a linear basis. Under that method, most industrial countries were required to make their initial offer an across the board cut in tariffs. They were then allowed to table a list of exceptions, which thus became the focus of the negotiation.

In the Uruguay Round, no specific method was used. However, substantial reductions were achieved. The trade weighted ad valorem reductions in tariffs on industrial products were close to 40%. After implementation developed countries' tariffs on industrial products were to fall from 6.3% to 3.9% on average.

It is also important to note that during the Singapore Ministerial Meeting of December 1996, some WTO Members agreed to a Ministerial Declaration on Information Technology Products (ITA). The ITA provides that signatories to the Agreement will eliminate on an MFN basis any customs duties on information technology products by the end of 2000. Information technology products cover computers, telecommunications equipment, semiconductors, semiconductor manufacturing equipment, software and scientific instruments. Thus, a series of WTO Members currently allow duty-free imports of information technology products.

Tariff reductions are currently being further negotiated in the framework of the Doha Round.

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