It envisions reduction or elimination of industrial tariffs as well as an attack on tariff peaks, tariff escalations and non-tariff barriers in particular on products of interest to developing countries.
and, if feasible, aim at elimination of all other MFN rates of tariffs and tariff escalations in sectors where they exist;
Moreover, tariff peaks, tariff escalation, tariff rate quotas and other non-tariff measures including antidumping duties, countervailing duties, and safeguard measures to protect against serious injury from import surges, allowed under the WTO, have become major impediments to market access for developing countries exports.
It also stresses the need to address tariff peaks, tariff escalation and non-tariff barriers such as import quotas and technical standards.
* A formula approach for tariff reduction and for reduction or elimination of tariff peaks, tariff escalation and high tariffs.
Moreover, there has been tariff escalation resulting in heavy effective protection to value-added activities.
These figures are important because they suggest that the tariff escalations may have been motivated more by political interests than by economic distress.
tariff escalations adversely affected income, thus implying that a larger proportion of the trade collapse should be attributed to the escalations of the trade barriers than the 41%.
By assuming sticky nominal wages Eichengreen shows in a two-country Mundell-Fleming model that idiosyncratic tariff escalations lead to a reduction in the increase in real wages because they prevented prices from decreasing as much as they would have done otherwise.
Turning to the price effects, the tariff escalations tended to 7reduce import prices (exclusive of tariffs), thus leading to deflation-induced increases in macro tariff rates.
Assuming independence between nominal income and tariffs, the estimates showed that world trade contracted by 13% because of falling income, 8% because of discretionary tariff escalations, 7% because of the imposition of discretionary nontariff trade barriers, and 5% as a result of deflation-induced tariff increases, from 1929 to 1932.