Doha - is the latest round of trade negotiations among the WTO

membership
Doha aim is to achieve major reform of the international trading
system
writing rules for maintaining trade barriers and for other trade
policies
committing all countries to negotiations opening agricultural and manufacturing markets, as well
as trade-in-services (GATS) negotiations and expanded intellectual property regulation (TR!S)"
T#e intent of t#e round, according to its proponents, was to make trade rules fairer for
developing countries
seeking agreement on negotiation modalities, an impasse w#ic# was not resolved"
t#ese modalties are t#e An example of modalities in the current World Trade Organization
agriculture negotiations would be a percentage phase-out over a specified time period of
agricultural export subsidies or the use of the Swiss formula for tariff reduction and
harmonization.
swiss formala
aim was to provide a mechanism where maximum tariffs could be agreed,
and where existing low tariff countries would mae a commitment to some further
reduction.
The organization is attempting to complete negotiations on the !oha !evelopment
"ound, which was launched in #$$% with an explicit focus on addressing the needs of
developing countries.
As of &une #$%#, the future of the !oha "ound remained uncertain'
how would we now there is a progess
(inisterial conferences
The highest decision-maing bod) of the WTO
The fifth ministerial conference- aiming at forging agreement on the !oha round. An
alliance of ## southern states, the *#$ developing nations +led b) ,ndia, -hina,./$0 1razil,
AS2A3 led b) the 4hilippines5, resisted demands from the 3orth for agreements on the
so-called 6Singapore issues6 and called for an end to agricultural subsidies within the
27 and the 7S. The tals broe down without progress.
sixth WTO ministerial conference
-#$$8, vital if the four-)ear-old !oha !evelopment "ound negotiations were to
move forward sufficientl) to conclude the round in #$$9
--countries agreed to phase out all their agricultural export subsidies b) the end of
#$%/,
Terminate an) cotton export subsidies b) the end of #$$9.
%5 compulsor) licensing of medicines and
patent protection.
#5 Trade facilitation, which aims to improve the efficienc) of international trade
b) harmonizing and streamlining customs procedures, has received strong support from
developed and developing countries. +World Bank also says it is working with
the government in improving transparency through a trade
information website where all rules, regulations, fees, and procedures
will be available.)
$eveloping electronic trade documentation system (suc# as e-%ustoms declaration, e-
&anifest, e-nvoice) and e-Single 'indow environment
A third issue deals with a /5 review of provisions giving special
and differential treatment to developing countries along with problems that developing
countries
are having in implementing current trade obligations.
the 7rugua) "ound +*ATT-7"5
reducing trade barriers for agricultural commodities was a central issue
first time that agricultural trade had taen center stage
greement in late %::/
#$$$, tariffs will be reduced on medical e;uipment, scientific instruments,
pharmaceuticals, wood, paper, aluminum, chemicals, and construction e;uipment.
anti-dumping rules were strengthened.
existing agricultural tariffs will be reduced.
,mport licenses will be eliminated.
(ember countries. must convert non-tariff barriers to tariffs, and these
tariffs must be reduced over a specified time period <or example, import
;uotas will be replaced b) tariff rate ;uotas
the influence of the *ATT-7" agreement on world prices and the relative trade
shares of these two exporters are liel) to be small also
The beneficiaries will be those exporters that have not previousl)
depended on export subsidies and the taxpa)ers who financed them.
-onsumers who previousl) benefited from subsidized prices will lose some
of those benefits. The agreement allows legitimate food aid shipments to continue.
7.S. exports more competitive= 27 and &apanese exports will be generall) less so
(embers agreed to wor towards harmonizing health and sanitar) measures and >ustif)
them based on sound science
One countr) can challenge the legitimac) of another?s health or sanitar) measures
before the WTO.
these changes, global trade will increase, and maret economics, rather than
government policies, will increasingl) determine trade flows.
3hance
85 transparenc) and monitoring in relation to the trade-related aspects of cotton
Trade <acilitation
clarif) and improve relevant aspects of Articles @, @,,, and A of the *ATT %::B with a
view to further expediting the movement, release and clearance of goods, including
goods in transit=
agirculture
land reform and rural livelihood securit), such as'
i. land rehabilitation=ii. soil conservation and resource management=
iii. drought management and flood control=iv. rural emplo)ment programmes=
v. issuance of propert) titles= andvi. farmer settlement programmes
in order to promote rural development and povert) alleviatio
The *eneral -ouncil is instructed to report, including an) recommendations, on the
implementation of this !ecision to the next (inisterial -onference.
The confict between free trade on industrial goods and services but retention
of protectionism on farm subsidies to domestic agricultural sector (requested
by developed countries) and the substantiation of the international
liberalization of fair trade on agricultural products (requested by developing
countries) remain the major obstacles.
These points of contention have hindered any progress to launch new WT
negotiations beyond the !oha !evelopment "ound. #s a result of this impasse$
there has been an increasing number of bilateral free trade agreements signed
The subjects
Agriculture
The aim: More market access, eliminating eport subsidies, reducing distorting domestic
support, sorting out a range of developing country issues, and dealing with non-trade concerns
such as food security and rural development!
" #ee $riefing note
" More on agriculture negotiations
Non-agricultural market access (NAMA)
The aim: %To reduce or as appropriate eliminate tariffs, including the reduction or elimination
of high tariffs, tariff peaks and tariff escalation &higher tariffs protecting processing, lower
tariffs on raw materials' as well as non-tariff barriers, in particular on products of eport
interest to developing countries(!
" #ee $riefing note
" More on )*M* negotiations
Services
The aim: To improve market access and to strengthen the rules! +ach government has the right
to decide which sectors it wants to open to foreign companies and to what etent, including
any restrictions on foreign ownership! ,nlike in agriculture and )*M*, the services negotiations
are not based on a %modalities( tet! They are being conducted essentially on two tracks-
o bilateral and.or plurilateral &involving only some WTO members' negotiations
o multilateral negotiations among all WTO members to establish any necessary rules and
disciplines

" #ee $riefing note
" More on services negotiations

Trade facilitation
The aim: To ease customs procedures and to facilitate the movement, release and clearance of
goods! This is an important addition to the overall negotiation since it would cut bureaucracy
and corruption in customs procedures and would speed up trade and make it cheaper!
" #ee $riefing note
" More on trade facilitation negotiations
Rules
These cover anti-dumping, subsidies and countervailing measures, fisheries subsidies, and
regional trade agreements!
The aim: %/larifying and improving disciplines( under the *nti-Dumping and #ubsidies
agreements0 and to %clarify and improve WTO disciplines on 1sheries subsidies, taking into
account the importance of this sector to developing countries!

The environment
These are the first signi1cant negotiations on trade and the environment in the 2*TT. WTO!
They have two key components-

o reer trade in environmental goods! 3roducts that WTO members have proposed
include- wind turbines, carbon capture and storage technologies, solar panels!
o !nvironmental agreements! 4mproving collaboration with the secretariats of
multilateral environmental agreements and establishing more coherence between
trade and
o
"eogra#hical indications: multilateral register for $ines and s#irits
This is the only intellectual property issue that is de1nitely part of the Doha negotiations! The
objective is to %facilitate( the protection of wines and spirits in participating countries! The
talks began in 5667 and were built into the Doha 8ound in 9::5!
%ther intellectual #ro#ert& issues
#ome members want negotiations on two other subjects and to link these to the register for wines and
spirits! Other members disagree! These two topics are discussed in consultations chaired by the WTO
Director-2eneral &sometimes a deputy'-
"' (e)tension*! +tending the higher level of protection for geographical indications beyond
wines and spirits
+io#irac&, benefit sharing and traditional kno$ledge
-is#ute settlement
Aim: To improve and clarify the Dispute #ettlement ,nderstanding, the WTO agreement dealing
with legal disputes! These negotiations take place in special sessions of the Dispute #ettlement
$ody &D#$'! +ceptionally, they are not part of the %single undertaking( of the Doha 8ound!
Wh) haven?t the) finished negotiating )etC
T#e $o#a round is (ased on t#e idea of a single undertaking, w#ic# means t#at,
in effect, )not#ing is agreed until everyt#ing is agreed
Would a !oha deal be good for developing countriesC
T#at depends on w#at kind of agreement t#e negotiators come up wit#" t also
depends on w#o you ask" &ost people would agree t#at stronger restrictions on
farm su(sidies in t#e *+ and t#e +S would (e good for farmers in t#e developing
world" ,ut if developing countries sign a deal t#at severely limits t#e tariffs t#ey-re
allowed to place on, say, imports of mai.e, t#at could make it #arder for t#em to
protect t#eir domestic mai.e farmers in t#e event of a droug#t or ot#er disaster at
#ome" &ost economists would tell you t#at, (roadly speaking, t#at sort of
)protectionism) / w#ic# a $o#a deal would guard against
Benefits.edit0
&ost countries participating in t#e negotiations (elieve t#at t#ere is some
economic (enefit in adopting t#e agreement0 #owever, t#ere is considera(le
disagreement of #ow muc# (enefit t#e agreement would actually produce" A
study (y t#e+niversity of &ic#igan found t#at if all trade (arriers in agriculture,
services, and manufactures were reduced (y 112 as a result of t#e $o#a
$evelopment Agenda, t#ere would (e an increase in glo(al welfare of
3456"7 (illion"
8459
A :77; study (y 'orld ,ank <ead *conomist =ym
Anderson
84;9
found t#at glo(al income could increase (y more t#an 31777 (illion
per year, 3:477 (illion of w#ic# would go to t#e developing world"
84>9
?t#ers #ad
(een predicting more modest outcomes, e"g" world net welfare gains ranging
from 3;6 (illion to 3:;5 (illion (y t#e year :7@4"
8@98A79
!ascal <amy #as
conservatively estimated t#at t#e deal will (ring an increase of 3@17 (illion"
8A@9
.o$ the negotiations are organi/ed back to to#
The negotiations take place in the Trade )egotiations /ommittee and specific negotiating
groups! Other work under the work programme takes place in WTO councils and
committees!
;irtually every item of the negotiation is part of a whole and indivisible package and
cannot be agreed separately! This is known as the %single undertaking(- %)othing is
agreed until everything is agreed(!
&depends on the year' first trade facilities negotitiation was on 9::<! negotiations shall aim to
clarify and improve relevant aspects of *rticles ;, ;444 and = of the 2*TT 566< with a view to
further epediting the movement, release and clearance of goods, including goods in transit!
)egotiations shall also aim at enhancing technical assistance and support for capacity building
in this area! The negotiations shall further aim at provisions for effective cooperation
between customs or any other appropriate authorities on trade facilitation and customs
compliance issues!(
9 )ovember 9:5:
-%.A -!0!1%2M!NT A"!N-A
Red ta#e at #ort costlier than shi##ing bet$een #orts:
economists mull -oha3s value
* Doha 8ound package on market access in all goods, and on agricultural subsidies,
could add >595 billion to >9:9 billion to the world economy! * %trade facilitation( deal
could cut trade costs by more than the %impact of geographical distance( between
countries! Those were just two points made in a WTO workshop on the latest analyses
of the negotiations on 9 )ovember 9:5:!
8ecent work has included calculations of the value of rule-making and other aspects
of the Doha 8ound that are not normally epressed in numbers! ?or eample for
%trade facilitation( &negotiations to cut red tape and streamline customs procedures',
a 5@ improvement in indicators representing transparency and predictability could
increase trade in manufactured products by :!7@, the workshop heard!
The ranges of figures reflect different assumptions about the calculations and about
governmentsA reactions, such as how much they use fleibilities allowing them to
dilute liberaliBation!
#ome economists also warned of the harm failure to reach a deal might cause! The
most pessimistic scenario is the most protectionist one that is still legal under present
WTO rules, without a Doha 8ound deal! 4f governments closed their markets for goods
and services to the maimum allowed under their present commitments &going to the
highest tariffs legally bound in the WTO, and the minimum market opening they
committed in services', this could slash world trade in goods and services by almost
5:@, the workshop heard!
% The hard work that governments have put into this round during the past nine years
of negotiations has resulted in some remarkable achievements! 4mplementation of the
gains already achieved would deliver a trading system that is more eCuitable, more
efficient and more effective,( Director-2eneral 3ascal Damy concluded!
%Euite apart from the numbers on the specific parts of the package, and we have
seen and heard Cuite a few sets of figures today, there are also the systemic benefits
to the deal in front of us today,( he said!
% $ut the numbers cannot substitute for a colletive sense of determination needed to
conclude this round! There is a strong message that reaching a deal can send to the
public and to the markets F even in times of crisis governments can and do work
together to accomplish important things!(
The workshop on %recent analyses of the Doha 8ound( was organiBed jointly by
the 4nternational /entre for Trade and #ustainable Development, theWorld $ank and the World
Trade OrganiBation!
4ts purpose was to take a look at recent work seeking to evaluate the trade policy
changes that might be in prospect from a completed Doha 8ound and what the impact
of the changes would be!
modalities( contain formulas for cutting tariffs and trade-distorting
subsidies and related provisions!
4hat are (modalities*5 %Modalities( are ways or methods of doing something! Gere, the ultimate
objective is for member governments to cut tariffs and subsidies and to make these binding
commitments in the WTO! The %modalities( will tell them how to do it, but first the %modalities( have
to be agreed!
With 5HI members and thousands of products, the simplest way to do this is to agree on formulas for
making the cuts! These formulas are at the heart of the %modalities(! Once they have been agreed,
governments can apply the formulas to their tariffs and subsidies to set new ceiling commitments!
Gowever in order to agree to the formulas, members want a number ofother concerns to be part of
the deal! These include fleibility to allow some deviation from the formulas, tighter disciplines to
ensure loopholes are plugged and trade-distorting subsidies are not camouflaged in permitted policies,
and different treatment for developing countries and some other groups of members!
The result is a document that is considerably more complicated than formulas alone! $ut the aim is still
to strike a deal that enables governments to open their markets and reduce trade-distorting subsidies!
These new commitments are to be listed in documents called %schedules( of commitments!
said they would try to preserve what had been agreed and continue working towards
agreement!
drafts are still not the final word! They put the possible areas of agreement on paper so that members
can react and further revise the tets!
%#TT
#rticle &'freedom of transit
*rticle ;444 ?ees and ?ormalities connected with 4mportation and +portation
" *rticle = 3ublication and *dministration of Trade 8egulations
E!"#$ %"&!E$'$'"(
@5" T#e $o#a &inisterial $eclaration calls for )reduction of, wit# a view to p#asing out,
all forms of export su(sidies)" As an outcome of t#e negotiations, &em(ers agree to
esta(lis# detailed modalities ensuring t#e parallel elimination of all forms of export
su(sidies and disciplines on all export measures wit# eBuivalent effect (y a credi(le end
date"
End Point
@;" T#e following will (e eliminated (y t#e end date to (e agreedC
*xport su(sidies as sc#eduled"
*xport credits, export credit guarantees or insurance programmes wit# repayment
periods (eyond @;7 days"
Terms and conditions relating to export credits, export credit guarantees or insurance
programmes wit# repayment periods of @;7 days and (elow w#ic# are not in accordance wit#
disciplines to (e agreed" T#ese disciplines will cover, inter alia, payment of interest, minimum
interest rates, minimum premium reBuirements, and ot#er elements w#ic# can constitute
su(sidies or ot#erwise distort trade"
!rovision of food aid t#at is not in conformity wit# operationally effective disciplines to (e
agreed" T#e o(Dective of suc# disciplines will (e to prevent commercial displacement" T#e role
of international organi.ations as regards t#e provision of food aid (y &em(ers, including related
#umanitarian and developmental issues, will (e addressed in t#e negotiations"
@>" *ffective transparency provisions for paragrap# @; will (e esta(lis#ed" Suc#
provisions, in accordance wit# standard 'T? practice, will (e consistent wit#
commercial confidentiality considerations"
Implementation
:7" %ommitments and disciplines in paragrap# @; will (e implemented according to a
sc#edule and modalities to (e agreed" %ommitments will (e implemented (y annual
instalments" T#eir p#asing will take into account t#e need for some co#erence wit#
internal reform steps of &em(ers"
:@" T#e negotiation of t#e elements in paragrap# @; and t#eir implementation will
ensure eBuivalent and parallel commitments (y &em(ers"
Special and Differential Treatment
::" $eveloping country &em(ers will (enefit from longer implementation periods for t#e
p#asing out of all forms of export su(sidies"
:1" $eveloping countries will continue to (enefit from special and differential treatment
under t#e provisions of Article >"6 of t#e Agreement on Agriculture for a reasona(le
period, to (e negotiated, after t#e p#asing out of all forms of export su(sidies and
implementation of all disciplines identified a(ove are completed"
:6" &em(ers will ensure t#at t#e disciplines on export credits, export credit guarantees
or insurance programs to (e agreed will make appropriate provision for differential
treatment in favour of least-developed and net food-importing developing countries as
developing country &em(ers w#ic# enDoy special privileges to preserve domestic
consumer price sta(ility and to ensure food security will receive special consideration
for maintaining monopoly status"
Export Subsidies
As a first general obligation, developed countries must immediately eliminate all forms of export
subsidies and commit to their unconditional prohibition.
Developing countries, on the other hand, must be able to continue using existing flexibility with
respect to export subsidies