WTO Members' Applied Tariffs Fall by a Third Since 1996

Tariffs applied by World Trade Organization members have fallen by nearly a third since the mid-1990s. This decline coincides with a more than fourfold expansion in the value of global merchandise trade, according to a data update from WTO economists Monia Snoussi-Mimouni and Edvinas Drevinskas.

The simple average most-favoured-nation (MFN) tariff levied by WTO members dropped from 13.1 percent in 1996 to 8.9 percent in 2024, a decrease of 32 percent. The trade-weighted average MFN tariff fell even more sharply, from 7.0 percent to 3.9 percent over the same nearly three-decade span. The WTO notes that 72 percent of world trade in 2026 continues to be conducted on these MFN terms.

When accounting for preferential tariff regimes, the decline is steeper still. These regimes include those offered by developed countries to developing and least-developed economies, as well as tariffs within regional trade agreements. Assuming full use of these preferences, the trade-weighted average of effectively applied tariffs plummeted from 6.8 percent in 1996 to just 2.2 percent in 2024.

Tariff Declines by Product Category

The reduction in tariffs has not been uniform across all types of goods. Data shows tariffs on agricultural products have declined more significantly than those on industrial goods, which started from a lower base in 1996. The changes are measured using trade-weighted MFN applied tariffs.

The WTO analysis notes that tariffs for the three listed agricultural categories each fell by about 50 percent between 1996 and 2024. For industrial goods, electrical machinery saw the largest decrease, falling from 5.1 percent to 1.4 percent.

Drivers Behind the Averages

The economists explain that shifts in trade-weighted averages are driven by two factors: changes in the tariff rates themselves and changes in the composition of trade flows. "An increase in trade in goods combined with a lower tariff within a product group will result in a decrease in the trade-weighted average," they state. The steeper drop in effective applied tariffs, which include preferences, was partly due to increased trade in products that already faced lower duties.

These trends underscore a long-term liberalization of market access since the WTO's establishment in 1995. The figures cover the period up to 2024 and do not incorporate any tariff measures introduced since 2025. The organization acknowledges recent trade policy uncertainty but reaffirms its core mission. The WTO remains committed to helping its members ensure trade flows as smoothly, predictably, and freely as possible.