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Doha Round 

Main article: World Trade Organization

The Doha Development Round is the current trade negotiations of the World Trade Organization. The 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.

Contents

Doha

Main article: WTO Ministerial Conference of 2001

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 reaction to the exclusion of developing countries from agriculture negotiations resulted in failure to obtain the "explicit consensus" needed at the final Heads of Delegation meeting.[1] Extensive public protest activity coincided with the WTO's failure at Seattle to build on the outcomes of the preceding Uruguay Round. The new round was instead launched at a ministerial conference in Doha, Qatar. 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 trade-in-services (GATS) negotiations and expanded intellectual property regulation (TRIPS). The intent of the round, according to its proponents, was to make trade rules fairer for developing countries.[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,[4] and congressional leaders decided not to renew this authority for the current U.S. president.[5]

Cancún, 2003

Main article: WTO Ministerial Conference of 2003

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.

Geneva, 2004

The August 2004 Geneva talks achieved a framework agreement on opening global trade.[6][7] 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.[8]

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.[9]

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.

Hong Kong, 2005

Main article: WTO Ministerial Conference of 2005

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. The WTO blames the demonstrations for preventing some delegations from attending the final Heads of Delegation Meeting, which approved the Ministerial Declaration by explicit consensus. The demonstrators were cleared by the Hong Kong security forces in the early morning of December 18, hours before the meeting.

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 were set to expire in 2007.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.[10] 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".

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. [11]

Geneva, 2008

On July 21st, 2008, negotiations started again at the WTO's HQ in Geneva on the Doha round of Trade. Around 40 ministers were expected at the conference and it will last a week. Negotiators have continued since the last conference in June 2007. [12] Pascal Lamy, WTO’s director-general, said before the start of the conference, the odds of success were over 50%. [13] Kamal Nath, India's trade minister, was absent from the first few days of the conference due to a no-confidence vote being conducted in India's Parliament.[14] On the second day of the conference, U.S. Trade Representative Susan Schwab announced that the U.S. would cap its farm subsidies to $15 billion a year[15], from $18.2 billion in 2006. [16] This proposal is on the condition that countries such as Brazil and India drop their objections to various aspect of the round. [15]


References

General

Geneva, 2006

Other

Endnotes

  1. ^ With the US and the EU trying to stitch up a deal on agriculture, the developing countries complained bitterly that they were being excluded from the process.The Guardian, December 4, 1999
  2. ^ "Emergency Committee For American Trade".
  3. ^ "Our World is Not For Sale".
  4. ^ "U.S. Trade Representative Susan C. Schwab To Attend Meetings To Advance Doha Negotiations July 23-24". United States Government. Retrieved on 2008-07-20.
  5. ^ "Fast Track Is Dead Today" (AFL-CIO). Retrieved on 2008-07-20.
  6. ^ "World trade deal gets thumbs-up", BBC News (2004-8-1). Retrieved on 2008-07-20. 
  7. ^ "Trade agreement at a glance", BBC News (2004-8-2). Retrieved on 2008-07-20. 
  8. ^ "Q&A: WTO trade breakthrough", BBC News (2004-8-1). Retrieved on 2008-07-20. 
  9. ^ "Q&A: World trade in crisis", BBC News (2005-4-4). Retrieved on 2008-07-20. 
  10. ^ Hanrahan, Charles; Randy Schnepf (2007-1-22). "WTO Doha Round: The Agricultural Negotiations". Congressional Research Service. Retrieved on 2008-07-20.
  11. ^ Palmer, Doug; Laura MacInnis (2007-6-21). "G4 talks collapse, throw trade round into doubt" (in English), Reuters. Retrieved on 2008-07-20. 
  12. ^ "Defrosting Doha" (in English), The Economist (2008-7-17). Retrieved on 2008-07-20. 
  13. ^ "Remember Doha?", The Economist (2008-7-17). Retrieved on 2008-07-20. 
  14. ^ Beattie, Alan (2008-7-21). "Expectations low as Doha talks begin", Financial Times. Retrieved on 2008-07-22. 
  15. ^ a b Palmer, Doug; William Schomberg (2008-7-22). "U.S. offers farm subsidy cut, is asked for more". Reuters. Retrieved on 2008-07-22.
  16. ^ Schnepf, Randy; Womach Jasper (2007-04-26). "Potential Challenges to U.S. Farm Subsidies in the WTO". Congressional Research Service. Retrieved on 2008-07-22. 

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