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DOHA DEVELOPMENT ROUND

Submitted to : Prof. Y. C. Joshi

Presented By : Kunal Patel Parth Vala Nirav Parmar

WORLD TRADE ORGANISATION

WORLD TRADE ORGANISATION


History:

Officially commenced on 1st January 1995.


Replaced the GATT with 153 member countries. Represents 97 % of World trade. Headquartered in Geneva, Switzerland. Governed by a ministerial conference, meeting every two years, a General Council and a Director-General

Objective:
Supervise and Liberalize International Trade.

Provides a framework for negotiating and formalizing trade agreements. Dispute resolution process aimed at enforcing participants' adherence to WTO

DOHA DEVELOPMENTAL ROUND

DOHA DEVELOPMENTAL ROUND


History:

Launched at the fourth ministerial conference in Doha, Qatar in


November 2001. Succeeded the Uruguay round and the three ministerial conferences at Singapore (1996), Geneva (1998) and Seattle (1999).

Objectives: Lower trade barriers around the world.


Committing all countries to negotiations opening agricultural and manufacturing markets, as well as trade-in-services (GATS) negotiations and expanded intellectual property regulation (TRIPS).
Make trade rules fairer for developing countries

20 subjects in 9 broad areas:


Agriculture (including Cotton added in 2003)

Services
Non agricultural market access (NAMA) TRIPS (multilateral system for registration & notification of geographical indications) WTO Rules (AD, Subsidies, RTAs) Trade and Environment Special and Differential Treatment Trade Facilitation (added in 2004) DSU (outside Single-Undertaking)

KEY ISSUES AT DOHA

November 2001 Minister Youssef Hussain Kamal of Qatar at the Fourth Ministerial Conference, Doha.

KEY ISSUES AT DOHA


Agriculture has become the linchpin of the agenda for both developing and developed countries

Compulsory licensing of medicines and patent protection


A review of provisions giving special and differential treatment to developing countries. Resolve problems that developing countries are having in implementing current trade obligations. Key Interests for ASEAN countries Greater market access for industrial goods. Trade facilitation. Anti dumping and subsidies. Technical Co-operation. Effective dispute settlement mechanism

Principles of the trading system

Principles of the trading system


Non-Discrimination Most favored nation Reciprocity Binding and enforceable commitments Transparency Safety valves Agreements Agreement on Agriculture (AoA) General Agreement on Trade in Services (GATS) Trade-Related Aspects of Intellectual Property Rights Agreement (TRIPs)

Cancun Conference 2003


The conference was aimed at forging agreement on the DDA.
Called for an end to agricultural subsidies within the EU and the US.

Hong Kong Conference 2005


Countries agreed to phase out all their agricultural export subsidies by the end of 2013. Agreement to introduce duty free, tariff free access for goods.

Geneva Conference 2008


Negotiation over the special safeguard mechanism. The negotiations collapsed on July 29 over issues of agricultural trade between the United States, India, and China.

Geneva Conference 2009


On 26 May 2009, agreed to hold a seventh WTO ministerial conference session in Geneva from 30 November3 December 2009. "The WTO, the Multilateral Trading System and the Current Global Economic Environment"

Types of Impasses of relevance at DOHA round

Types of Impasses of relevance at DOHA round


Parties could not agree to launch a negotiation. (Impasse on initiation.) Parties could not agree on the subjects for the negotiation (Impasse on contents.) After agreeing to start a negotiation the parties take a long time to come to a mutually agreeable outcome. (Impasse as delay.)

Having agreed to start a negotiation, subsequently the parties appear unable to conclude the negotiation with an agreement. (Impasse as high expected failure to agree.)
Having agreed to start a negotiation, subsequently the parties can only agree to conclude the activity of negotiation without an agreement. (Impasse as actual failure to agreefortunately the DDA has not reached this point.)

INTERESTS OF INDIA Accelerating integration with world economy (Globalization). Foster more rapid growth and poverty reduction. Expand access to World Markets. Voice in formulation of rules and Decision Making in the WTO. Guarding against the intrusion of non-traded matters in WTO.

BENEFITS TO INDIA Increase in Indias textile & clothing exports due to the phasing out of MFA (in 2005). The reduction in agricultural subsidies & barriers to export of agriculture products, agricultural exports from India also increased. Market access to a number of developing countries without trade discrimination increased.

Disadvantages for India

Disadvantages for India


TRIPs agreement went against the Indian Patents Act (1970) Introduction of product patents in India lead to hike in drug prices by the MNCs. Hence the poor were left with no generic option Extension of intellectual property right to agriculture has negative effects on India and Indian research institutions Application of TRIMs agreement undermines any plan or strategy of self reliant 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 to the interest of India. The MFN clause proved to be detrimental to Indias interest & provided grounds for Chinese invasion in Indian market through dumping.

Unaddressed Issues

Unaddressed Issues
In order not to discredit itself, globalization would have to squarely address sustainable development and poverty reduction . There must be an attempt to link the strategies of development to something more fundamental, the ends of economic and social development . The international trade rules are underpinned by an insufficient appreciation of the adverse impact of rapid liberalization, if it does not pay adequate attention to the need to reduce asset and income inequalities.

Without substantial investment in the capacity to supply and, equally important, a guaranteed safety net against falling prices and import surges, sudden liberalization would expose the constituents to unbearable risk.

Agriculture Issues in Developing Nations

Agriculture Issues in Developing Nations

One of the key issues is the Agreement on Agriculture (AoA).


Areas related to Agriculture-Market Access, Domestic Support, export Competition, Trade Related Intellectual Property Rights . 40 to 50 % of support to the farmers in the form of Green Box subsidies. Developed countries allowed to retain 80% of their subsidies while developing countries can subsidize their farmers not more than 10%. Increasing dependency on imports for food grains could bring strain on external payment position of these countries.

Textile Industry

What is MFA all about ? What is ATC ? What is TMB ?

What happened to ATC ?


Impact of ATC termination Textile industry merged into GATT under WTO..

Impact of Free Trade on Different products

Poultry

Tea and Coffee

Butter

Cheese

Cigarettes

Coconut Oil

Shaving Brushes

Chocolate

Removal of Quantitative Restrictions.


Liquor Beverages
Oral Hygiene

Baby Food

Weakness Of World Trade Organization

WTO is fundamentally undemocratic. WTO causes trampling of labor and human rights. Privatization of Essential services.

Fuel issues.
Food issues. Forest issues. Creating a Rich mans world.

Singapore Issue

Singapore Issue

A feature of the world trade organization during its first 10 years has been the impact of Singapore issue of

Investment

Competition
Government procurement and Trade facilitation

It arises because WTO members decided at 1996 Singapore ministerial conference to set up three new working groups on:

Trade and investment trade and competition policy and Transparency in government procurement

They also looked at simplifying trade procedure as it became known trade facilitation.

Developed country members especially the US and EU were satisfied because they had
the issue firmly on the agenda. In contrast mostly developing countries were not agree.

The Individual Singapore issue Examined:

(1) Trade Facilitation: Traders from both developing and developed countries have long pointed at the vast amount of red tape that still exist in moving good across the

borders.
Documentation requirement often lack transparency and are often

duplicated, a problem compounded by a lack of co operation between


traders and their respective official agencies.

(2) African regional dimension:


Treading cost including the trade facilitation costs are very high in Africa. Further more, the lack of reliable trade data within the southern African custom union (SACU) becomes a serious problem.

(3) Government Procurement The role of government in its procurement of goods and services typically

accounts for 10-15% of GDP for developed countries and about 20% of
GDP for developing countries.

WTO members signed the plurilateral agreement on government


procurement at the Uruguay round in 1994. Most of the signatories countries are developed countries consisting of US, UK, Canada, EU etc.

The intension of GPA (Government procurement Agreement) is to ensure that government decision regarding government purchase of goods and services do not depend upon where the goods is produced or from where the services are rendered. This initial step led to establishment of the working group at 1996 ministerial conference at Singapore to investigate government procurement transparency- in this way Singapore issue came into existence. Many countries for a variety of reasons place restrictions on GPA, for both goods and services. Some will do to encourage domestic industry.

Trade & Investment Indias position


Question the rationale for bringing investment into the WTO as it was overburdened and illequipped to handle investment Question the need for a multilateral framework as it would not grant developing countries any certainty of additional FDI flows and the BITs were serving the requirements well with the needed flexibility Trade and Investment has different effects and different treatment of these issues was required Investment policies are closely linked to national development policies in which developing countries need policy space Doha mandate is about a clarification process, not about negotiations and clarity has not been achieved

Trade &Competition - Indias Position


Competition Policy covers besides, trade policy, investment, industrial etc. policies, and WTO may not be the forum for Competition policy as such Countries are at different stages of development: Multilateral Competition Policy assumes convergence of economic and even political interests Naturally, bilateral agreements are few and confined to developed countries or to RTAs Efforts by some Members are to address governmental measures, while India is interested in enterprise practices having cross border effects being addressed

Effectiveness of WTO provisions doubtful in the absence of readiness of


Members like the US, EC, Japan etc. for information sharing and DSU. Peer Review would work against developing countries in view of

asymmetry of market power of WTO Members

Transparency in GP - Indias Position


For India transparency means gathering full information about a Members procurement regime - No new commitments for changing or

modifying any aspect of its procurement system;


Regarding coverage, due to the federal structure of the government and the large number of entities involved it would be very difficult to provide detailed information on all levels of procurement; Information on the Central Government procurements of goods (not services) above a particular threshold limit could be considered; On other issues such as information on laws/ rules; procurement opportunities; information on procedures; time periods; etc. could be provided and was easily available already; India has objected to any prescriptions on domestic review procedures;

Trade Facilitation - Indias Position

India had expressed its reservations regarding the need for multilateral
rules on TF in WTO. No need for an agreement for what are essentially trade procedures.

Other expert bodies like WCO dealing with similar issues.


Resource implications in terms of modernization, commitment for timely clearance of goods would be difficult for developing countries to meet. Not clear how DSU would apply to a Procedural Agreement

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