Dual type-2 fuzzy cones are defined. Formulae for infimum and supremum of any number of fuzzy grades are derived. These formulae are used to study basic properties of dual type-2 fuzzy cones. It is shown that most properties of type-1 fuzzy cones remain valid. An axiomatic approach to Pareto set reduction is then considered. A method of Pareto set reduction with the use of dual type-2 fuzzy cones is outlined.