1. 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?

2. ”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

3. 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

4. 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

5. 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”

6. 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