관세감축 공식별 농산물 관세구조 변화

How Tariff Reduction Methods Affect the Agricultural Tariff Structure in Major 10 Countries?

This study focuses on the effects of tariff reduction by tariff reduction methods for 10 major countries. Six different tariff reduction methods have been applied to measure the effects. The Swiss formula with a ceiling tariff rate of 25% gives rise to the deepest cut. However, this formula brings shallow cut of tariffs compared with an Uruguay Round formula for some countries including the U.S., Australia and Chile. Tariff escalation, difference and peak tend to be mitigated by appling the Swiss formula compared to the UR method. However, tariff reduction with the Swiss formula not always reduces tariff escalation problem compared with the Uruguay Round method. Tariff peak tends to be very lowered by the formula cut. The highest tariff rate of 887% in Korea is reduced to 24.3% (reduction rate of 97%) when the Swiss formula with a ceiling tariff rate of 25% is applied. Formula cut methods are not always good for food exporting developing countries. Korea and Japan will suffer the most from the formula cut method and need to persuade food exporting developing countries not to accept formula cut methods.