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 A ‘non-linear formula’ which reduces high tariffs, tariff peaks and tariff escalations. Higher tariffs will be subject to greater reductions compared to lower tariffs. A smaller coefficient would result in a deeper cut compared to a larger coefficient.

Swiss Formula :

C     :       coefficient to determine tariff reductions in each country;

t₀     :       The existing tariff rate for a particular country; and

t₁     :       The bound tariff rate for that country.