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Despite on-going negotiations on the various facets of agricultural support and protection in the World Trade Organisation (WTO), differences still remain between the key protagonists over the issue of market access and reduction of import tariffs. One of the key issues is the formula for achieving reductions in agricultural tariff rates, which are generally acknowledged to be too high. Under the “linear” approach, which was adopted in the Uruguay Round, high and low tariffs are both reduced at the same percentage rate, leaving the highest tariffs still at prohibitive levels even after any percentage reduction has been made. The Swiss formula recognises the wide diversity in the current range of tariffs, from in excess of 100% in some cases to little more than zero in others. Using a “coefficient” mechanism, high starting tariffs are reduced at a faster rate than lower tariffs, thus addressing the issue of tariff “peaks” for certain heavily protected products which has been a particular concern of the Cairns Group. The Cairns Group proposal would give developed countries five years to reduce their tariffs to 25% or lower, with a 50% "down payment" cut made in the first year. The WTO circulated the first draft of “modalities” for further commitments in the forthcoming WTO round to WTO member governments in February 2003. However, WTO member governments failed to agree on a framework of “modalities” for the future agriculture trade reform at the Fifth WTO Ministerial Conference in Cancun, Mexico held on September 2003. Along with almost all the other negotiations under the Doha Development Agenda, the agriculture talks are scheduled to end by 1 January 2005. This timetable was agreed in November 2001, at the Fourth WTO Ministerial Conference in Doha, Qatar.

The reduction of tariffs under the “linear” and “Swiss formula” in the new WTO round: Impacts on the EU sugar regime