EU proposes tariff reductions on industrial goods

Alan Peat THE EUROPEAN Union has tabled a proposal for tariff reductions on industrial goods with the World Trade Organisation (WTO), according to information released to FTW by the SA Association of Freight Forwarders (SAAFF). The EU has proposed a “compression mechanism” to achieve these ends. This would see WTO members agreeing to significantly reduce all tariff duties by compressing them into a flatter range in which tariff peaks and high tariffs are eliminated. It is seen as a “bold initiative” by commentators, introducing “meaningful liberation across all non-agricultural products” - or over 70% of exports from developing countries. Also included are proposals to eliminate all export restrictions on raw materials, and to make larger reductions in duties for textiles and footwear. This is intended to reduce them as close to a zero-rating as possible. The EU has also proposed what it terms “one-sided elements” designed to give favour to exports from developing countries. The union has suggested that this exercise will be undertaken by its own member countries, and other key WTO members.