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FORMULA APPROACH

A tariff reduction negotiating method by which tariffs are reduced across the board using a mathematical formula agreed upon by participants.

Related terms:

FORMULA-PLUS TARIFF REDUCTIONS - The use of linear tariff cuts, accompanied by other methods to achieve tariff reductions, such as zero-for-zero tariff reductions.

Source: Walter Goode: Dictionary of Trade Policy Terms, Fourth Edition, (Cambridge University Press/WTO, 2003), p. 143

HARMONIZING FORMULA - Used in tariff negotiations for steeper reductions in higher tariffs than in lower tariffs, the final rates being 'harmonized' i.e. closer