The Swiss Formula is a mathematical formula designed to cut and harmonize tariff rates in international trade.
[1] The aim was to provide a mechanism where maximum tariffs could be agreed, and where existing low tariff countries would make a commitment to some further reduction.
Somewhere with an existing tariff Told of 64% would move to a Tnew rate of about 18%, rather lower than the maximum; one with a rate Told of 12% would move to a Tnew rate of about 8.1%, substantially lower than the maximum.
Mathematically, the Swiss formula has these characteristics: It has been argued[by whom?]
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