Doha Development Round

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The World Trade Organization conducts negotiations through what is called rounds. The Doha Development Round commenced at Doha, Qatar in November 2001 and is still continuing. Its objective is to lower trade barriers around the world, permitting free trade between countries of varying prosperity. As of 2008, talks have stalled over a divide between the developed nations led by the European Union, the United States and Japan and the major developing countries (represented by the G20 developing nations), led and represented mainly by India, Brazil, China and South Africa.

The Doha Round began with a ministerial-level meeting in Doha, Qatar in 2001. Subsequent ministerial meetings took place in Cancún, Mexico (2003), and Hong Kong, China (2005). Related negotiations took place in Geneva, Switzerland; Paris, France; and again in Geneva.

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[edit] Doha

The Doha Round of WTO negotiations began in November 2001. This round was to have begun at the WTO Ministerial Conference of 1999 in Seattle, and was to have been called "The Millennium Round" but some developing countries refused to launch the round by blocking the "explicit consensus" needed at the final Heads of Delegation meeting. Severe demonstrations distracted attention[neutrality disputed] from the refusal of developing nations to expand the WTO because of their dissatisfaction with the outcomes of the Uruguay Round. The new round could only be launched at a meeting in Doha, Qatar. The explicit consensus at the conclusion of the Doha Conference was reached only after some delegations of the developing nations had been forced to leave the country[citation needed]. The new trade agenda of the developed world was dubbed the Doha Development Agenda, and from there all countries were committed to negotiations opening agricultural and manufacturing markets, as well as services negotiations and expanded intellectual property regulation. The intent of the round, according to its proponents, was to make trade rules fairer for developing countries.[1] [2] Opponents charged that the round would expand a system of trade rules that were bad for development and interfered excessively with countries' domestic "policy space". [3]

The round was set to be concluded in four years (December 2006) — after two more Ministerial Conferences had produced a final draft declaration. The WTO pushed back its self-imposed deadline to slightly precede the expiration of the U.S. President's Congressional Fast Track Trade Promotion Authority. Any declaration of the WTO must be ratified by the U.S. Congress to take effect in the United States. Trade Promotion Authority prevents Congress from amending the draft. It expired on June 30, 2007,[1] and congressional leaders have indicated their unwillingness to renew this authority for the current U.S. president [2].

[edit] Cancún

The 2003 Cancún talks—intended to forge concrete agreement on the Doha round objectives—collapsed after four days during which the members could not agree on farm subsidies and access to markets. Negotiations focused upon four key areas: agriculture, industrial goods, trade in services, and updated customs codes. The collapse seemed like a victory for the developing countries. But unlike Seattle, which prevented the commencement of the second round of negotiations, Cancun resulted in continued negotiating.

South Korean Farmers and Fisheries President Lee Kyung Hai committed suicide on the first day of the conference in protest of the price distorting agricultural subsidies of the EU and U.S. The North-South divide was most prominent on issues of agriculture. Rich countries’ farm subsidies (both the EU’s Common Agricultural Policy and the U.S. government agro-subsidies) became a major sticking point. The developing countries were seen as finally having the confidence to reject a deal that they viewed as unfavorable. This is reflected by the new trade bloc of developing and industrialized nations: the G20. Since its creation, the G20 has had fluctuating membership, but is spearheaded by the G4 (the People's Republic of China, India, Brazil, and South Africa). While the G20 presumes to negotiate on behalf of all of the developing world, many of the poorest nations continue to have little influence over the emerging WTO proposals.

[edit] Geneva, 2004

The August 2004 Geneva talks achieved a framework agreement on opening global trade. The U.S.A, EU, Japan and Brazil agreed to end export subsidies, reduce agricultural subsidies and lower tariff barriers. Developing nations agreed to reduce tariffs on manufactured goods, but gain the right to specially protect key industries. The agreement also provides for simplified customs, and stricter rules for rural development aid.

[edit] Paris, 2005

Trade negotiators wanted to make tangible progress before the December 2005 WTO meeting in Hong Kong, and hoped to agree to the deal before 2007 when U.S. fast-track legislation expires. Without fast-track, it will be much harder to get a ratification from the U.S. Senate.

Paris talks were hanging over a few issues: France protested moves to cut subsidies to farmers, while the U.S., Australia, the EU, Brazil and India failed to agree on issues relating to chicken, beef and rice. Most of the sticking points were small technical issues, making trade negotiators fear that agreement on large politically risky issues will be substantially harder.

By July-August an agreement was needed in order to finalize negotiations for agreement in Hong Kong. Oxfam charged the EU with "delaying tactics" which threatened to spoil the round.

[edit] Hong Kong

The Sixth WTO Ministerial Conference took place in Hong Kong, December 13 to 18, 2005.

Trade ministers representing most of the world's governments reached a deal that sets a deadline for eliminating subsidies of agricultural exports by 2013. The final declaration from the talks, which resolved several issues that have stood in the way of a global trade agreement, also requires industrialized countries to open their markets to goods from the world's poorest nations, a goal of the United Nations for many years. The declaration gave fresh impetus for negotiators to try to finish a comprehensive set of global free trade rules by the end of 2006. Pascal Lamy, Director General of the WTO, said, "I now believe it is possible, which I did not a month ago."

As many as 2000 protesters demonstrated outside the Hong Kong Convention and Exhibition Centre, the location of the talks. Clashes with the police left at least 116 people injured, including 56 officers, although there were no critical injuries according to the authorities.

[edit] Geneva, 2006

The July 2006 talks in Geneva failed to reach an agreement about reducing farming subsidies and lowering import taxes, and continuation of the negotiations will take months to resume. A successful outcome of the Doha round has become increasingly unlikely, because the broad trade authority granted under the Trade Act of 2002 to U.S. president George W. Bush expires in 2007.[3] Any trade pact will then have to be approved by the U.S. Congress with the possibility of amendments, which creates an additional burden on the U.S. negotiators and decreases the willingness of other countries to participate.

Hong Kong offered to mediate the collapsed trade liberalisation talks. Director-General of Trade and Industry, Raymond Young, says the territory, which hosted the last round of Doha negotiations, has a "moral high-ground" on free trade that allows it to play the role of "honest broker".

[edit] Potsdam, 2007

In June 2007, negotiations within the Doha round broke down at a conference in Potsdam, as a major impasse occurred between the US, the EU, India and Brazil. The main disagreement was over opening up agricultural and industrial markets in various countries and also how to cut rich nation farm subsidies. [4]

[edit] References

Geneva, 2006

Paris:

Geneva, 2004:

Overview:

WTO Resources

Other

[edit] Endnotes

  1. ^ Oxfam International - Make Trade Fair
  2. ^ Emergency Committee For American Trade - Hot Issues
  3. ^ Our World is Not For Sale
  4. ^ G4 talks collapse, throw trade round into doubt, By Doug Palmer and Laura MacInnis, reuters 6/2/07.

[edit] External links

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