Doha round trade

DOHA TRADE ROUND C/AFFAIR TOPIC.

The WTO launched this Doha trade round of negotiations at its November 2001 ministerial conference in Doha, Qatar. The aim is to unlock global trade in areas where many barriers still exist, in sectors such as agriculture, services and manufacturing. The Doha declaration placed particular emphasis on correcting distortions that have effectively barred poor, rural nations from a share in world agricultural markets. Many developing countries have a comparative advantage in delivering farm goods to market, and seek a sharp reduction in rich-country trade bar.(https://eastwestknowledge.com/economic-sanctions-2/)

GENERAL AGREEMENT ON TARIFF & TRADE & WTO

GATT was established in 1947 and went into action in 1948.This was a multilateral agreement among 154 countries regarding trade barriers.The aim of GATT was ” substantial reduction of Tariffs and other trade barriers and curb the preferences and mutually advantageous basis.GATT hold eight round talks in which issues discussed of trade and resolving transnational trade disputes.The Uruguay round, which was completed on December 15, 1993 after seven years of negotiations. An agreement settled among 117 countries including U.S.A. It also reduced trade barriers and to promote more comprehensive and enforceable trade rules.The Uruguay Round was of Multilateral trade Negotiations which was signed in April 1994.U.S congress approved in December 1994 and went into force on January 1, 1995.This called WTO[World Trade Organization].

WTO January 1, 1995.

This came into being in 1995 and its head quarter is located in Geneva, Switzerland.WTO is the successor of the GATT.GATT created rule and regulations for the modern multilateral trading system.WTO is the principle forum for setting the rules of international trade.In past 25 years, it helped in reduction of trade barriers for both goods and services and made a dispute resolution system.It reduced the threat of trade war.Its members increased from 123 to 164.WTO decisions happen at ministerial level conference which convened every two years.First conference was convened in Singapore in 1996 and 12th would be in Kazakhstan in June 2020.

Founding Principles of WTO:

  • Important and basic is , commitment to openness, it means reduce tariff, limit quotas, subsidy and other trade barriers.
  • The concept of Non-Discrimination.WTO members must trade and treat equally all members.
  • WTO need transparency and predictability in trade related regulations and promote international standards for citizens, companies and investors stability.
  • WTO is committed to provide large flexibility and accommodations to poorer nations to adjust new rules.

WTO Under Pressure:

  • There is no consensus on agriculture subsidy and property rights.
  • Members of WTO urged to separate bilateral and regional trade agreement to advance their trade.

WTO Handle Dispute:

  • Three bodies largely deal with two types of dispute.
  • State to State Dispute. One country government challenge the other country government regarding policies of trade.
  • Investors To State Dispute. Individual can complaints against governments. For example, individual can bring case in WTO, in case of being wrong treated regarding trade polices.The most important institution for it, is, International Center for settlement of investment Disputes (ICSID).It was created in 1965 as part of World Bank.It has 163 members.

Why criticism for WTO.?

  • Farmers and laborer groups accused the WTO that WTO is protecting purely the rights of corporate sector.
  • United states of America policy makers accused on WTO that it has failed to handle Chinese abuses.This is allegedly report.

Fundamental Concerns:

  • Intellectual property rights: A unique and original works such as new innovative idea, inventions, art, writing, processes, company, product names and logos.This is called intellectual property.Protection of these rights is called intellectual property rights.Trade related aspects of intellectual property rights[TRIPS] is an agreement under WTO.Experts criticized that WTO rules regarding drug patents have meager access to medicine in poorer nations.
  • Sovereignty and Regulation. Experts say, Rules overrule national sovereignty. U.S.A argued that WTO is unable to protect U.S wages from being undercut by unfair labour practice abroad.
  • Import Competition.According to some economists,Not only import is being promoted but also firms are being encouraged to move their operation in various countries.WTO led tariff cut, which disturbed the U.S jobs and wages.Will Kim-ball estimated in 2014, America lost more than 3 million jobs after entrance of China in WTO.

DOHA TRADE.

This is the current round of trade negotiations among the members of World Trade organization.Fundamental aim of this, is to achieve reforms of the international system through the introduction of reduction in trade barriers and review trade rules and regulations.This program includes 20 areas of trade.This is known as semi-official as the Doha Development agenda.

Major Areas:

  • Agriculture.
  • Non-Agriculture market access.
  • Trade & Environment.
  • Trade Facilitation.
  • Trade and Development.
  • How to settle Dispute.
  • World Trade organization rules.

In November 2001, ministerial level conference was convened in Doha, WTO agreed upon a new round of trade negotiations, aimed further trade liberalization. Developing Nations will be given more access to the global market.Unlock the world level trade barriers in those areas which still exist in agriculture, services and manufacturing.

Core idea of Doha Trade:

Majority of the world poorest nations have nothing to sell but basic agricultural products.[Isiah Frank].These nations are pressed hard to compete against developed nations.The poorest countries cannot afford subsidy, they do effort to save their farmers by another way.They imposed heavy tariff on product of developed nations.On the other hand rich nations, like United of States of America, European Union and Japan provide subsidy to their farmers. Without subsidy their farmers in the developed world out of business.For example, EU average cow receive 2.2 $ daily subsidy more than the daily of 20% world population.

Progress on Doha Trade Talks

Rich Nations urge to increase their access to non-agriculture products and services in developing countries to robust their economy like in People Republic of China, India and Brazil.They eager to capitalize their strong financial, transportation and telecommunication.

Issues in Doha Talk.

U.S offered to cut subsidy on agriculture products if EU will do the same.EU want promise from Brazil and India to cut tariffs on industrial goods.On the other hand china is providing cheap goods to other nations.

Effects of Subsidy.

  • World cannot achieve UN millennium goals.
  • It contribute world wide poverty by lowering the prices of cotton, sugar, rice and other crops which are the major sources of income of the poorest nations.

Stance of Richer Nations.

  • They don’t want to rely on other nations, due to its National security reasons.
  • Protection of Cultural identity.

Benefits of Trade Barriers reductions.

It will increase global trade nearly 300 Billion dollars yearly as experts says.It will lift many states out of poverty.

Conference on Doha Trade:

  • A conference was convened in Cancun Mexico in 2003.Conference devolved in 4 days without reaching on logical end over farm subsidizes between rich and poor.
  • In 2006, conference was held in Hong Kong which has the same issues but could not achieve the logical result.
  • In 2008 Global Financial Crisis.
  • Trade Facilitation agreement was accepted in 2013 in Bali Conference in Indonesia.The aim was to speed up custom procedures and make trade easier, faster and cheap.
  • In 2013, cut tariff on IT products.
  • Conference in 2017 in Buenos Aires failed to find any agreement among its members.Fundamental rhyme was, India blocking attempt to reduce fish subsidizes.
  • This lecture is helpful to CURRENT AFFAIRS, INTERNATIONAL RELATIONS and PAKISTAN-AFFAIRS.
  • This lecture was made and research by Muhammad Fawad Khan.
  • website is eastwestknowledge.com.
  • Share with others to help them.
  • Source of Data: From different articles of CFR, New York time and WTO website,and view point of experts.
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