Policy Issues Involving Nontariff Trade Barriers

Abstract

Without doubt the major accomplishment of seven multilateral trade negotiations (MTNs) that began in the late 1940s was the reduction of tariffs as trade barriers. Estimates relating to the period prior to the MTNs indicate the average tariff in industrial countries was approximately 40 per cent, but these duties were progressively lowered to under 8 per cent through concessions made in the Geneva (1947) (1956), Annecy (1949), Torquay (1951), Dillon (1962) and Kennedy Round (1968). During the most recent Tokyo Round (1979) negotiations, the General Agreement on Tariffs and Trade (GATT) estimates that developed country most-favoured-nation (MFN) tariffs on manufactures were reduced by about one-third, and now average about 5.5 per cent since the final concessions have been implemented. A further liberalisation of tariffs will undoubtedly occur in the Uruguay Round negotiations which are scheduled for completion in 1990.