Historical development The importance of tariffs for government revenue, foreign exchange and infant industries Developed countries vs. developing countries Starting point and rounds of negotiations Transforming quantitative restrictions to tariffs – do we still have quantitative restrictions? Gradual reduction of tariffs ”Sensitive sectors” – agriculture, textiles, airplanes – reflecting developed countries priorities The Doha Round Failure of the Millennium Round Are we seeing a failure of the Doha Round?

”Tariff” Tariffs Ad valorem Specific ”Nuisance tariffs” Preferential ”Tariff Escalation” Tariffs and fees – art. II:1(b) + Understanding: Schedule GATT art. II:2 Border tax adjustment CVD / anti-dumping duties Tariffs and payment for services + art. VIII:1(a) – the problem of ”ad valorem” duties

The legal framework The duty to negotiate – GATT art XXVIII bis and XXXVII:1 Clauses on review Establishment of negotiation mandates – how much must be determined? Doha round: Not formulated NAMA modalities until 2007! Still arguing! Classification of products The Harmonised System (HS) Convention The role of the UN The role of the US Customs unions

Tariff negotiations Reciprocity vs. MFN Exemption from reciprocity in favour of developing countries (art. XXXVI:8) Exemption from both: Enabling clause and General System of Preferences (GSP) Role of IMF and World Bank Bilateralism vs. multilateralism Product-by-product vs. general Tariff concessions vs. applied tariffs

Legal nature of negotiation result Article II Must keep within obligations under WTO Interpretation Burden of proof ”legitimate expectations” HS Convention State practice ”non-violation nullification or impairment”

Implementation Valuation of goods for customs purposes GATT art. VII and Agreement ”actual value” – market value, starting point ”transaction value” Determining the origin Agreement: work in progress! Value added Change i tariff classification Control New circumstances Renegotiations: art. XXVIII and MFN exceptions