Case Study 8-5 Structure of Tariffs on Industrial Products in the United States, European
WEB: CH. 5, Salvatore’s Introduction to International Economics, 3rd Ed.
3. Structure of Tariffs on Industrial Products in Smaller Developed Countries
The following table gives the Post-Uruguay Round tariff levels on imports of raw materials, semi-manufactures, and finished products in Australia, Switzerland, Norway, and New Zealand. Transport equipment, non-electrical machinery, electrical machinery, and other manufactured goods have the single tariff level indicated in Web Site (1) for this chapter (independently of the stage of processing), and so they are not included in the table that follows. The table shows the cascading tariff structure on many industrial products imported in the smaller developed countries. The increase in the tariff with the stage of processing is greatest on imports of textiles, leather, rubber and travel goods, and metals. It is also prevalent in wood, pulp, paper and furniture (except for Switzerland). For chemicals, and fish and fish products, the situation is mixed.
Table Cascading Tariff Structure on Imports of Industrial Products in Australia, Switzerland, Norway, and New Zealand (Percentages)______
Australia Switzerland ______
Raw Semi- Finished Raw Semi- Finished
Materials Manufactures Products Materials Manufactures Products
Wood, pulp, paper & furniture 0.3 7.0 8.9 1.2 2.9 1.7
Textiles and clothing 1.5 22.9 35.7 1.6 3.9 5.5
Leather, rubber & travel goods 4.2 11.5 22.0 0.1 0.8 3.2
Metals 0.6 0.8 11.8 0.0 1.1 1.3
Chemicals & photo. supplies 0.0 9.8 7.6 0.0 1.5 1.2
Mineral products 2.4 6.0 11.1 1.7 1.5 1.4
Fish & fish products 0.4 0.0 3.2 0.3 0.2 1.1
______
Norway New Zealand ______
Raw Semi- Finished Raw Semi- Finished
Materials Manufactures Products Materials Manufactures Products
Wood, pulp, paper & furniture 0.0 0.2 0.6 0.0 4.6 5.6
Textiles and clothing 0.1 7.8 9.5 0.0 9.2 34.4
Leather, rubber & travel goods 0.0 0.0 4.4 5.9 14.8 23.1
Metals 0.0 0.3 2.5 0.0 9.4 15.2
Chemicals & photo. supplies 0.0 3.0 2.9 0.0 4.1 11.4
Mineral products 0.2 0.0 1.3 2.1 1.6 13.1
Fish & fish products 0.0 0.0 30.9 1.1 0.0 6.6
______
Source: WTO, Market Access: Unfinished Business (Geneva: WTO, 2001), pp. 36-39.