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DOHA DEVELOPMENT ROUND

The idea of “pluralism” has its roots not just in western liberal
thought but in Indian philosophy as well.
Amartya Sen

Presenting By : Group:2

Aravind Uppala-122
Dasari Pradeep – 126
Sangam Lalsivaraju-138
Rajesh Mishra -151
WORLD TRADE ORGANISATION
History:
• Officially commenced on 1st January 1995.
• Replaced the GATT with 153 member
countries.
• Represents 97 % of World trade.
• Headquartered in Geneva, Switzerland.
• Governed by a ministerial conference, meeting
every two years, a General Council and a
Director-General

Objective:
• Supervise and Liberalize International Trade.

• Provides a framework for negotiating and
formalizing trade agreements.
• Dispute resolution process aimed at enforcing
participants' adherence to WTO
DOHA DEVELOPMENTAL ROUND
History:
• Launched at the fourth ministerial
conference in Doha, Qatar in November 2001.
• Succeeded the Uruguay round and the three
ministerial conferences at Singapore
(1996), Geneva (1998) and Seattle (1999).

Objectives:
• Lower trade barriers around the world.
• Committing all countries to negotiations
opening agricultural and manufacturing
markets, as well as trade-in-services (GATS)
negotiations and expanded intellectual
property regulation (TRIPS).
• Make trade rules fairer for developing
countries
KEY ISSUES AT DOHA
• Agriculture has become the linchpin of
the agenda for both developing and
developed countries
• Compulsory licensing of medicines and
patent protection
• A review of provisions giving special and
differential treatment to developing
countries.

• Resolve problems that developing
countries are having in implementing
current trade obligations.
• Key Interests for ASEAN countries –
 Greater market access for industrial
goods.
 Trade facilitation.
 Anti dumping and subsidies.
 Technical Co-operation.
 Effective dispute settlement mechanism

November 2001 — Minister Youssef
Hussain Kamal of Qatar at the Fourth
Ministerial Conference, Doha.
Principles of the trading system
• Non-Discrimination
Most favored nation
•Reciprocity

•Binding and enforceable commitments
•Transparency
•Safety valves
Agreements
•Agreement on Agriculture (AoA)
•General Agreement on Trade in Services
(GATS)
•Trade-Related Aspects of Intellectual
Property Rights Agreement (TRIPs)
Cancun Conference 2003
The conference was aimed at forging agreement on the DDA.
Called for an end to agricultural subsidies within the EU and the
US.

Hong Kong Conference 2005
• Countries agreed to phase out all their agricultural export
subsidies by the end of 2013.
• Agreement to introduce duty free, tariff free access for goods.

Geneva Conference 2008
• Negotiation over the special safeguard mechanism.
• The negotiations collapsed on July 29 over issues of
agricultural trade between the United States, India, and China.

Geneva Conference 2009
• On 26 May 2009, agreed to hold a seventh WTO ministerial
conference session in Geneva from 30 November–3 December 2009.
• "The WTO, the Multilateral Trading System and the Current Global
Economic Environment"
Types of Impasses of relevance at DOHA round
•

Parties could not agree to launch a
negotiation. (Impasse on initiation.)

•

Parties could not agree on the subjects for
the negotiation (Impasse on contents.)

•

After agreeing to start a negotiation the
parties take a long time to come to a
mutually agreeable outcome. (Impasse as
delay.)

•

Having agreed to start a
negotiation, subsequently the parties
appear unable to conclude the
negotiation with an agreement. (Impasse
as high expected failure to agree.)

•

Having agreed to start a
negotiation, subsequently the parties can
only agree to conclude the activity of
negotiation without an agreement.
(Impasse as actual failure to agree—
fortunately the DDA has not reached this
point.)
INTERESTS OF INDIA
• Accelerating integration with
world economy (Globalization).
• Foster more rapid growth and
poverty reduction.
• Expand access to World Markets.
• Voice in formulation of rules and
Decision Making in the WTO.
• Guarding against the intrusion of
non-traded matters in WTO.

BENEFITS TO INDIA
• Increase in India’s textile & clothing
exports due to the phasing out of MFA
(in 2005).
• The reduction in agricultural
subsidies & barriers to export of
agriculture products, agricultural
exports from India also increased.
• Market access to a number of
developing countries without trade
discrimination increased.
Disadvantages for India
• TRIPs agreement went against the Indian
Patents Act (1970)
• Introduction of product patents in India lead
to hike in drug prices by the MNCs. Hence the
poor were left with no generic option
• Extension of intellectual property right to
agriculture has negative effects on India and
Indian research institutions
• Application of TRIMs agreement undermines
any plan or strategy of self reliant growth
based on local technology.
• Service sectors in India are backward
compared to the service sectors in developed
countries. Hence inclusion of trade in services
is detrimental to the interest of India.
• The MFN clause proved to be detrimental to
India’s interest & provided grounds for
Chinese invasion in Indian market through
dumping.
Unaddressed Issues
•In order not to discredit itself, globalization
would have to squarely address sustainable
development and poverty reduction .
• There must be an attempt to link the
strategies of development to something more
fundamental, the ends of economic and
social development .
• The international trade rules are
underpinned by an insufficient appreciation
of the adverse impact of rapid
liberalization, if it does not pay adequate
attention to the need to reduce asset and
income inequalities.
• Without substantial investment in the
capacity to supply and, equally important, a
guaranteed safety net against falling prices
and import surges, sudden liberalization
would expose the constituents to unbearable
risk.
Agriculture Issues in Developing Nations
• One of the key issues is the Agreement on
Agriculture (AoA).
• Areas related to Agriculture-Market
Access, Domestic Support, export
Competition, Trade Related Intellectual Property
Rights .
• 40 to 50 % of support to the farmers in the form
of Green Box subsidies.
• Developed countries allowed to retain 80% of
their subsidies while developing countries can
subsidize their farmers not more than 10%.
• Increasing dependency on imports for food grains
could bring strain on external payment position of
these countries.
Weakness Of World Trade Organization

• WTO is fundamentally undemocratic.

• WTO causes trampling of labor and
human rights.
• Privatization of Essential services.

• Fuel issues.
• Food issues.
• Forest issues.
• Creating a Rich man’s world.
THANK YOU

Q and A

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Doha round International economics

  • 1. DOHA DEVELOPMENT ROUND The idea of “pluralism” has its roots not just in western liberal thought but in Indian philosophy as well. Amartya Sen Presenting By : Group:2 Aravind Uppala-122 Dasari Pradeep – 126 Sangam Lalsivaraju-138 Rajesh Mishra -151
  • 2. WORLD TRADE ORGANISATION History: • Officially commenced on 1st January 1995. • Replaced the GATT with 153 member countries. • Represents 97 % of World trade. • Headquartered in Geneva, Switzerland. • Governed by a ministerial conference, meeting every two years, a General Council and a Director-General Objective: • Supervise and Liberalize International Trade. • Provides a framework for negotiating and formalizing trade agreements. • Dispute resolution process aimed at enforcing participants' adherence to WTO
  • 3. DOHA DEVELOPMENTAL ROUND History: • Launched at the fourth ministerial conference in Doha, Qatar in November 2001. • Succeeded the Uruguay round and the three ministerial conferences at Singapore (1996), Geneva (1998) and Seattle (1999). Objectives: • Lower trade barriers around the world. • Committing all countries to negotiations opening agricultural and manufacturing markets, as well as trade-in-services (GATS) negotiations and expanded intellectual property regulation (TRIPS). • Make trade rules fairer for developing countries
  • 4. KEY ISSUES AT DOHA • Agriculture has become the linchpin of the agenda for both developing and developed countries • Compulsory licensing of medicines and patent protection • A review of provisions giving special and differential treatment to developing countries. • Resolve problems that developing countries are having in implementing current trade obligations. • Key Interests for ASEAN countries –  Greater market access for industrial goods.  Trade facilitation.  Anti dumping and subsidies.  Technical Co-operation.  Effective dispute settlement mechanism November 2001 — Minister Youssef Hussain Kamal of Qatar at the Fourth Ministerial Conference, Doha.
  • 5. Principles of the trading system • Non-Discrimination Most favored nation •Reciprocity •Binding and enforceable commitments •Transparency •Safety valves Agreements •Agreement on Agriculture (AoA) •General Agreement on Trade in Services (GATS) •Trade-Related Aspects of Intellectual Property Rights Agreement (TRIPs)
  • 6. Cancun Conference 2003 The conference was aimed at forging agreement on the DDA. Called for an end to agricultural subsidies within the EU and the US. Hong Kong Conference 2005 • Countries agreed to phase out all their agricultural export subsidies by the end of 2013. • Agreement to introduce duty free, tariff free access for goods. Geneva Conference 2008 • Negotiation over the special safeguard mechanism. • The negotiations collapsed on July 29 over issues of agricultural trade between the United States, India, and China. Geneva Conference 2009 • On 26 May 2009, agreed to hold a seventh WTO ministerial conference session in Geneva from 30 November–3 December 2009. • "The WTO, the Multilateral Trading System and the Current Global Economic Environment"
  • 7. Types of Impasses of relevance at DOHA round • Parties could not agree to launch a negotiation. (Impasse on initiation.) • Parties could not agree on the subjects for the negotiation (Impasse on contents.) • After agreeing to start a negotiation the parties take a long time to come to a mutually agreeable outcome. (Impasse as delay.) • Having agreed to start a negotiation, subsequently the parties appear unable to conclude the negotiation with an agreement. (Impasse as high expected failure to agree.) • Having agreed to start a negotiation, subsequently the parties can only agree to conclude the activity of negotiation without an agreement. (Impasse as actual failure to agree— fortunately the DDA has not reached this point.)
  • 8. INTERESTS OF INDIA • Accelerating integration with world economy (Globalization). • Foster more rapid growth and poverty reduction. • Expand access to World Markets. • Voice in formulation of rules and Decision Making in the WTO. • Guarding against the intrusion of non-traded matters in WTO. BENEFITS TO INDIA • Increase in India’s textile & clothing exports due to the phasing out of MFA (in 2005). • The reduction in agricultural subsidies & barriers to export of agriculture products, agricultural exports from India also increased. • Market access to a number of developing countries without trade discrimination increased.
  • 9. Disadvantages for India • TRIPs agreement went against the Indian Patents Act (1970) • Introduction of product patents in India lead to hike in drug prices by the MNCs. Hence the poor were left with no generic option • Extension of intellectual property right to agriculture has negative effects on India and Indian research institutions • Application of TRIMs agreement undermines any plan or strategy of self reliant growth based on local technology. • Service sectors in India are backward compared to the service sectors in developed countries. Hence inclusion of trade in services is detrimental to the interest of India. • The MFN clause proved to be detrimental to India’s interest & provided grounds for Chinese invasion in Indian market through dumping.
  • 10. Unaddressed Issues •In order not to discredit itself, globalization would have to squarely address sustainable development and poverty reduction . • There must be an attempt to link the strategies of development to something more fundamental, the ends of economic and social development . • The international trade rules are underpinned by an insufficient appreciation of the adverse impact of rapid liberalization, if it does not pay adequate attention to the need to reduce asset and income inequalities. • Without substantial investment in the capacity to supply and, equally important, a guaranteed safety net against falling prices and import surges, sudden liberalization would expose the constituents to unbearable risk.
  • 11. Agriculture Issues in Developing Nations • One of the key issues is the Agreement on Agriculture (AoA). • Areas related to Agriculture-Market Access, Domestic Support, export Competition, Trade Related Intellectual Property Rights . • 40 to 50 % of support to the farmers in the form of Green Box subsidies. • Developed countries allowed to retain 80% of their subsidies while developing countries can subsidize their farmers not more than 10%. • Increasing dependency on imports for food grains could bring strain on external payment position of these countries.
  • 12. Weakness Of World Trade Organization • WTO is fundamentally undemocratic. • WTO causes trampling of labor and human rights. • Privatization of Essential services. • Fuel issues. • Food issues. • Forest issues. • Creating a Rich man’s world.