wire presentation doha round

8/9/2019 WIRE Presentation Doha Round

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Launched at the fourth ministerial conference in Doha , Qatar inNovember 2001

Succeed the Uruguay round and three ministerial conference atSingapore (1996), Geneva (1998 ), Seattle (1999) .

OBJECTIVE

Lower trade barrier around the world.

Committing all countries to negotiation , opening agriculture and

manufacturing market , as well as trade in service (GATS)negotiation and expand intellectual property regulation (TRIPS)

Make trade rules fair for developing countries


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Expected benefits of Uruguay Round werent delivered More than 70% of gains to developed countries

Almost all of the rest to a few middle income countries

Many of the poorest countries are likely to be worse off

Sub-Saharan Africa worse off by $1.2 billion a year

48 least developed countries as a whole were worse off

OECD countries protection discriminates against imports from developing

countries

OECD tariffs are four times higher on developing countries imports than onthose from other OECD countries

OECD subsidies are concentrated in the goods exported by developing

countries


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Greater liberalization, strengthening of WTO rules andinclusion of new areas of cooperation

Agriculture

Non-agricultural Market Access Services Trade Facilitation Special and Differential Treatment for developing countries WTO Rules (anti-dumping, countervailing duties,

safeguards and fishery subsidies) TRIPS Trade and Environment Dispute Settlement Understanding (outside single

undertaking)


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Reform in three principal areas: Domestic support (tiered reduction in support) Market access (tiered reduction formulas)Export subsidies (elimination of all export subsidies)

The fundamental trade-off:

Cuts in domestic support (advanced countries) in return for marketaccess (developing countries)

Flexibilities from tariff reduction commitments: Sensitive Products (largely for developed countries) Special Products exclusively for developing countries

Special Safeguard Mechanism (SSM) for developing countries

The magnitude of the cut in cotton subsidies


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Tariff reduction principle: highest rates get cut more (use of Swissformula)

Flexibilities to deviate from formula, e.g.

Proposed coefficients of 20, 22 and 25. At 20, countries apply half theformula cut on 14% of tariff lines or no cut to 6.5%. With 22 it would be10% with half cut and no cut with 5%. No flexibility with 25

Additional flexibilities to some countries (e.g. South Africa)

Sectorals for deeper market access voluntary, but some see as potentialsolution to higher coefficients. Basically creating duty free sectors

automotives, bicycles, chemicals, electronics/electrical, fish and fish products, forest products, gems and jewellery, hand tools, healthcare,industrial machinery, raw material, sports equipment, textiles, clothing &footwear, toys)


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Limited traction in negotiations done bilaterally or request-offer method (around 30 countries

active in the negotiations)

Not a North-South Issue Mode 4 demands by developing countries in such areas as

IT, accounting, etc. Developing country financial institutions increasingly global

Given the importance of services in the world economy, this

area seen by many as integral part of a break-throughpackage

Sequencing/links with Agriculture and NAMA modalities.


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Provisions on the contents of the rights in respect of

Patents

Trademarks

geographical indications

industrial designs

lay-out designs of integrated circuits

protection of undisclosed information (trade secrets)


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SECTOR US EU Japan China India Brazil South

Africa

Agriculture D D D D D O O

NAMAO O O D D D

Services O O D D

Facilitation O O

Development O O O O

Rules D O O

Environment O


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LDCs require flexibility in undertaking new commitmentsbut want more market access for their exports (duty free,quota free)

Africa, Caribbean and Pacific (ACP) countries concernedthat preferences received from EU may be eroded by DDA

Recently acceded members (RAMs) feel that they havealready opened up considerably in their accession to theWTO and do not want to make more concessions under the

DDA

Duty-free city states Singapore and Hong Kong are strongsupporters of DDA


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The GATT secretariat estimated that largest increase in the level ofmerchandise trade in goods will be in the area of clothing ,agriculture , fishery & processed foods.

Indias textile & clothing exports will increase due to the phasing out

of MFA (by 2005).

The reduction in agricultural subsidies & barriers to export ofagriculture products, agricultural exports from India will increase.

The multilateral rules & disciplines relating to anti-dumping

,subsidies & countervailing measures, safeguards & disputesettlement machinery will ensure greater predictability ofinternational trade

Market access to a number of developing countries without tradediscrimination


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TRIPs agreement went against the Indian Patents Act (1970)

Introduction of product patents in India lead to hike in drug prices by theMNCs. Hence the poor were left with no generic option

Extension of intellectual property right to agriculture has negative effects on

India. Indian research institutions will be unable to compete financiallywith MNCs & will be denied access to patented genetic material.

Application of TRIMs agreement undermines any plan or strategy of selfreliant growth based on local technology.

Service sectors in India are backward compared to the service sectors in

developed countries. hence inclusion of trade in services is detrimental tothe interest of India.

The MFN clause proved to be detrimental to Indias interest & providedgrounds for Chinese invasion in Indian market through dumping.


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In order not to discredit itself ,globalization would have to squarelyaddress sustainable development and poverty reduction.

There must be attempt to link the strategies of development tosomething more fundamental , the end of economies and social

development.

The international trade rules are underpinned by insufficientappreciation of the adverse impact of rapid liberalization , if itdoesnot pay adequate attention to the need to reduce asset andincome inequalities.

Without substantial investment in the capacity to supply and, equally important , a guaranteed safety net against falling price andimport surge , sudden liberalization would expose the constituent sto unbearable risk .

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