Doha Agreement and Customs Union

Lorraine Scott Emma Abernethy Fiona Jackson Michelle Ingram Deborah Hunter

What this presentation covers

This presentation covers two areas in economics:
• Doha Agreement • Customs Unions

Doha Agreement

Doha Agreement
 

The Doha Agreement was named after the city it was set up in. It was set up in Doha, Qatar in middle east in November 2001. It started with 30 countries and ended with 4 countries. The remaining countries were United States of America, the European Union, India and Brazil. Its objective was to lower trade barriers around the world permitting free trade between countries. These countries had a variety of wealth.

Main Areas

The main areas covered by The Doha Agreement were:
• Agriculture • Services • Intellectual Property Rights • Environment • Anti-dumping • Investment Policy

Agriculture

It was set up to enable poor countries to trade farming products with other countries The agriculture section of the Doha Agreement was said to have played a large part in the demise of the Doha Agreement

Services

Services include – banking, tourism, insurance and travel. It was introduced to benefit the poorer populations by lowering prices for use of the services

Intellectual Property Rights
 

These included patents and copyrights An example of the introduction of the new regulations set out by the agreement would be that poorer countries argue that it prevented them from producing and importing cheaper versions of generic drugs

Environment

An example of how the Doha Agreement would have affected the environment would be if the new standards were enforced, for example protecting the dolphins from being caught in the tuna nets, the fishing industry could then be priced out of the market.

Anti-dumping

Anti-dumping allows US to increase tariff barriers, should it believe another country is selling goods at below the price of production for example domestic industries especially the steel industries.

Investment Policy

An investment policy is any Government Regulation or Law that encourages or discourages foreign investment in the local economy, e.g. currency exchange limits. The international trade rules would allow companies to establish their operation overseas without fear of interference.

Demise of Doha Agreement

The Doha Agreement collapsed in June 2007. It seems the Doha Agreement collapsed due to the countries involved not being able to agree on all the policies originally included in the agreement.

Customs Union

What Is It?
 

A group of country’s Adoption of Free Trade
• Zero Tariff • No other restriction on trade

Established through Trade Pact
• Wide ranging tax, tariff and trade pact, often includes investment guarantees

Will be represented at trade negotiations with Organisations
• WTO

What Does It Do?

 

Trades with free trade on goods and services between each other Agrees on common external tariff on good and services between country’s out with the Customs Union Makes this higher than their trade In some cases they use different import quotas

What Does It Do?

Allows free movement of labour and capital between members Could be a slight extension of a common market

Well Known Unions
 

South African Customs Unions Zollverein
• A 19th-century organization formed by several German states under Prussian leadership

The European Union

South African Customs Union
  

Oldest customs union Established in 1910 Between the then Union of South Africa and the High Commission Territories of Bechuanaland, Basutoland and Swaziland

Reasons For Establishing Customs Unions
 

 

Increasing Economic Efficiency To encourage trade between desired countries To avoid trade with specific countries Establishing closer political ties between the other members of the Union

References

http://news.bbc.co.uk/1/hi/business/164

http://en.wikipedia.org/wiki/Doha_R ound

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