1. A reduction in tariff levels and a simplification of tariff structures would help raise developing country exports. Subsidies can affect the relative competitive positions of countries and have a distorting effect on developing countries. Developed countries should consider the effects of their fiscal policy choices on the needs of developing countries. In addition, unilateral measures, including measures with extraterritorial effects, risk having a negative effect on efforts to move towards a truly non-discriminatory and open trading system.
2. Effective tariff rationalisation has potentially significant economic, environmental and social impacts. The net economic impact is likely to be positive and significant, although some sectors in some countries will suffer, while others gain.