Reciprocity and formula approaches

Reciprocity is a fundamental concept that dates back to the GATT negotiations and still shapes the mechanics of the MTN of the WTO.

The initial GATT process of negotiations was essentially bilateral: two countries presented their requests and offers and negotiated them on the basis of reciprocity. In doing so, they used a tariff reduction criterion or formula to evaluate the individual tariff and non-tariff concessions. These formulae can be general (across-the-board) or specific (item-by-item).[46]The concessions thus negotiated were then extended to the entire WTO membership through the MFN principle, which led to the problem of free riding.

The MTN shifted towards the use of the Тacross-the-boardУ formula approach to tariff reduction negotiations to address this issue. Under this approach, the same rate of tariff reduction applies to all product lines by all members and maximizes the number of tariff lines brought into the negotiations. Both techniques, the specific item-by-item and the general across-the-board formula, are used in the Doha Round, in particular the NAMA and agriculture negotiations.[47] Once members have agreed on the formula to be applied in the negotiations, they then turn to the negotiations of exceptions to the use of the formula as a rule. These exceptions can be product- and item-specific and use the safeguard mechanism and the establishment of the list of sensitive products.

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