b'3. Global tariffs since 1968 and EU tariffs3.1 The 1960s The then EEC introduced the CommonUnder the Ottawa Agreements of 1932, External Tariff in 1968. All member statesCommonwealth countries exported most put the same tariffs on all goods importedagricultural produce to the UK free of any from countries not in the EEC. At the sametariffs. In marked contrast, the EUs tariff time, the EEC entered into negotiationsrates on agricultural imports have remained on tariff reductions in industrial goods.high over the years. In agriculture, the EU has These negotiationsunder the successivemaintained a system of tariffs and subsidies Kennedy, Tokyo and Uruguay Roundsexecuted via the Common Agricultural made progress largely because they tookPolicythat protects EU farm products.The place in a multilateral forum. It was the US,average EU tariff on agricultural goods is now not the EU, which took the leading role. To be13.8%, whereas for non- agricultural goods it very specific, during the Kennedy Round ofis just 3.9%.161964-1967, it was the US that prevented the EEC from becoming more protectionist.Since 1973, when the UK joined the thenCommon Market, there has been a material In the Tokyo Round (1973-1979) the USA,reduction on tariff rates on manufactured Japan and the then EEC all agreed togoods. It follows that it is much less valuable significant reductions in tariff rates forand important for the UK to be part of the EU industrial goods. The EEC reduced itsCustoms Union than it was in 1973. tariff from 6.5%to 4.6%.Overall, the tariff reductionsfrom the Tokyo Round coveredThe graph in the table below shows the about $126 billion, some 90% of industrialdramatic fall in tariffs since the 1980s:trade in 1976.15Table 78 Tariff reductions - Tokyo Round Reduction inMFN imports in TraderPre-Tokyo RoundPost-Tokyo RoundpercentUS $United States6.3%4.3%-32%$78.0 billionJapan5.4%2.7%-50%$32.0 billion EEC (ninemember states)6.5%4.6%-29%$62.0 billionAverage6.2%4.1%-34%$57.3 billionSource: Import-Weighted Bound Tariff Average of Industrial Products and Change164'