WEB: CH. 5, Salvatore’s Introduction to International Economics, 3rd Ed.

1. Average Tariffs on Non-Agricultural Products in Smaller Developed Countries

The following table gives the average tariff imposed by Australia, Iceland, New Zealand,
Switzerland, and Norway on various non-agricultural products in 2009. The table shows that
Norway, Switzerland, New Zealand and Iceland have lower average tariff on non-agricultural
products than the major developed countries (see Case Study 5-1 in the text). Australia and
Norway have average tariffs, more or less, comparable to those of major developed countries. As
for the large developed countries, the smaller developed countries also impose their highest tariff
on clothing. Relatively high tariffs are also imposed on textile by Australia and Switzerland; on
leather and footwear by Australia, Iceland and New Zealand; on transport equipment by
Australia and New Zealand; and on non-electrical machinery by Australia and New Zealand.

Table: Tariff on Non-Agricultural Products in the Australia, Switzerland, Norway,

New Zealand, and Iceland in 2009 (Percentages)
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Australia Iceland New Zealand Switzerland Norway_

Fish & fish products 0.0 1.1 0.4 0.3 1.3

Minerals & metals 2.8 1.2 1.8 1.2 0.0
Petroleum 0.0 0.1 0.2 0.0 0.0
Chemicals 1.8 1.0 0.8 0.9 0.0
Wood, paper, etc. 3.4 2.6 1.3 3.5 0.0
Textiles 6.8 1.5 1.9 5.3 0.5
Clothing 15.4 14.6 9.6 4.8 8.4
Leather, footwear, etc. 5.5 5.9 3.1 1.7 0.0
Non-electric machinery 3.1 0.7 3.0 0.5 0.0
Electric machinery 3.2 2.1 2.6 0.7 0.0
Transport equipment 5.1 2.1 3.1 1.2 0.0
Other manufactures 1.4 3.4 1.7 1.2 0.0
Average 3.8 3.2 2.3 2.2 0.5
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Source: World Trade Organization, World Trade Report 2010 (Geneva: WTO, 2010), Part 2.