A Computable General Equilibrium (CGE) model based on the Social
AccountingMatrix of Iran has been used to simulate the effect of changes in
tariffrate on the Iran economy. The main idea was to investigate the impact
of joining World Trade Organization (WTO). The result of the model shows
that although reduction on tariff might adversely affects some sectors of
economy,but its overall effect is positive. Import, export and employment
wouldall increase. The result of simulation confirms that the Iran economy is
notverysensitive to changes in tariff rate.