WTO and Doha Round 2008: A Pause or Breakdown?
|
Code :ITF0030
|
Region : :Doha |
||||
 |
 |
 |
 OR |
||
|
Introduction: In 1947, General Agreement on Tariffs and Trade (GATT) came into existence with the objective of promoting international trade. Under GATT, eight rounds of trade negotiations were held, that aimed to lower the three barriers to trade – tariffs, export subsidies and domestic support. However, none of the rounds succeeded. Friction between developing and developed nations was frequent and impasse among the nations was common. None of the member countries was flexible in its position. However, the rounds continued and in the last negotiating round in 1995, GATT, was replaced by World Trade Organisation (WTO). WTO with a broader objective includes services and intellectual property rights along with trade. However, in the due course WTO witnessed some disastrous ministerial meetings. As there had been little progress on the implementation of the cuts decided in the 2001, Uruguay round of trade negotiations, new multilateral trade negotiations were launched in the Doha Development Round in Doha, Qatar. The round, which was held in Cancun failed, as the developing countries were reluctant to discuss on any new issue until developed countries agree to reduce their agricultural tariff. In the nextmeeting held in Hong Kong, decisions regarding tariff reduction were achieved but post this round none of the meetings were successful. In the latest round of trade negotiations, held in Geneva in July 2008, members from 30 countries met to negotiate on the reduction of export subsidies. However, this round failed in achieving consensus, as there was absolute disagreement between US, India and China over the right to use ‘Special Safeguard Mechanism’ (SSM). The failure led to a blame game between the developing and the developed nations. Developing nations were blamed for being over protective of farmers, who constitute the majority of their population, and developed countries were blamed of being insensitive and selfish. In order to arrive at a win-win situation, all the members of WTO have to compromise on terms of trade. However, while that is a known fact, can the Doha round be revived; only time can tell. |
|
| For Case Books
Click Here >> For Case eBooks Click Here >> |
|
