Everything about Doha Round totally explained
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.
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 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. 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. 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".
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,
(External Link
) and congressional leaders have indicated their unwillingness to renew this authority for the current U.S. president
(External Link).
Cancún
The 2003 Cancún talks—intended to forge concrete agreement on the Doha round objectives—collapsed after four days during which the members couldn't 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. 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.
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'll 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.
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's possible, which I didn't 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.
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.
(External Link) 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".
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.
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