This study focuses on the comparison of agricultural tariff structure by major countries in WTO negotiations and the effects of tariff reduction by various tariff cut methods. Tariff peak, tariff dispersion and tariff escalation problems are reviewed ...
This study focuses on the comparison of agricultural tariff structure by major countries in WTO negotiations and the effects of tariff reduction by various tariff cut methods. Tariff peak, tariff dispersion and tariff escalation problems are reviewed and evaluated extensively. Prohibitively high rates of tariff remain even in exporting countries. The distribution of the tariff rates is uneven, both among commodities and among countries. Trade distortive tariff escalation is dominant in developed countries. Formula approach gives rise to deeper tariff cut effects and mitigates the problem of tariff peak, tariff dispersion and tariff escalation. In the case of Korea, the tariff reduction rate will be 84.5 percent by the Swiss formula and 79.3 percent by the Canada formula.