The Swiss Formula is a suggested method for reducing tariff on non-agricultural goods (NAMA) by both developed and developing countries. It makes different coefficients for developed and developing countries. Here, tariff-cuts are supposed to be undertaken such that it cuts higher tariffs more steeply than it cuts lower tariffs.
The Swiss formula is a mathematical formula for tariff reduction and was first introduced by the Swiss Delegation to the WTO Countries are yet to reach consensus on the Swiss formula.
The difficulty of the Swiss formula is that since industrial tariffs in developing countries are, in general, much higher than those in developed countries, the Swiss Formula would also result in a much steeper reduction of industrial tariffs for the former.
