How can you ensure that trade is as fair as possible and as open as possible? By negotiating rules and respecting them. As the Dillon Round went through the arduous process of individual tariff negotiations, it became clear well before the end of the Round that a more comprehensive approach was needed to address the emerging challenges arising from the creation of the European Economic Community (EEC) and EFTA, as well as the resurgence of Europe as a major international trader in general. To some extent, this view was shared in Europe, but the process of European unification created its own burdens, under which the Kennedy Round sometimes became a secondary objective for the EEC. An example of this is the French veto in January 1963, even before the start of the round, against the accession of the United Kingdom. In addition, the GATT/WTO Agreement provides for minimum quotas for access to imports at reduced rates equivalent to 5 for the amount of consumption during the reference period. In addition, the European Union is required to grant access to New Zealand butter at a particularly low rate. This amount corresponds to the average amount that New Zealand spends each year in the United Kingdom under bilateral agreements during the GATT and WTO base period. Within the framework of its GATT and WTO commitments, the European Union has concluded a number of bilateral agreements aimed at facilitating market access on a reciprocal basis. For example, there are special quotas for the United States, Canada, Norway, Switzerland, South Africa and others. By removing barriers to trade through negotiations between member governments, the WTO system also removes other barriers between peoples and trading economies. In the end, this resulted in an average reduction of 35 per cent in tariffs, excluding textiles, chemicals, steel and other sensitive products; plus a 15% to 18% reduction in tariffs on agricultural and food products. In addition, the negotiations on chemicals resulted in a provisional agreement on the abolition of the US selling price (PPP). It was a method of valuation of certain chemicals used by these countries to impose import duties, which gave domestic producers a much higher level of protection than specified in the Customs Code.
The working hypothesis for collective bargaining was a linear tariff reduction of 50% with the few exceptions. A lengthy debate was developed about the trade impact that a uniform linear reduction would have on the dispersed rates (low and high tariffs, which are quite distant) of the United States compared to the much more concentrated rates of the EEC, which also tended to be in the lower tariffs of the United States. Through these agreements, WTO members apply a non-discriminatory trading system that defines their rights and obligations. Each member is guaranteed that its exports will be treated fairly and consistently in the markets of other members. .