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Britain's biggest energy provider said that the price cut, which will take effect from 27 August, would reduce annual energy bills on average by £35 and benefit 6.9 million of its customers on Standard and Fix & Fall tariffs.
The firm, which is the second of the big six energy companies to react to falling wholesale prices, said the average household bill would fall by £37 a year for customers on its standard and Fix & Fall tariffs.
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In 1846 it unilaterally reduced import tariffs by repealing the Corn Laws and in 1860 it signed a free-trade agreement with France, starting a virtuous cycle of falling tariffs worldwide.
To skeptics, the new agreement is yet another capitulation: tariffs on Vietnamese goods would drop immediately, while Vietnamese tariffs and quotas on American products would fall only gradually, in some cases enduring as long as seven years.
The fall of tariff barriers since 1994 has also exposed industries like garment manufacturing to low-wage competition from Asia.
Comparing scores of countries in one statistical sweep, these studies concluded that the poor do not get left behind by growth; that poverty falls when tariffs are cut; and that aid works, but only if the governments that receive it pursue "sound" policies.
These countries lose if tariffs fall, because the margin of preference is eroded.
Theoretical models that incorporate vertical specialisation find that it takes off only when tariffs fall below a threshold level.
Many of the country's 100-plus automobile assembly plants face extinction if imports surge as tariffs fall, and chemical plants could be crippled by foreign competition.
As tariffs fall, competition will speed the dismantling of China's state enterprises, meaning that tens of millions of Chinese citizens will no longer depend on the government for everything from their paycheck to their housing to their health care.
It has also allowed companies such as General Motors, Ford and Volkswagen to plan Chinese production of smaller, cheaper cars that can compete with imports once China joins the W.T.O. and protectionist tariffs fall from almost 100percentt now, to 25percentt within five years.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com