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The WTO negotiations: Will developing countries benefit from a new agreement?. Introduction. The negotiations in Cancun ended without producing any agreement. Indicator of a new balance of power. The G20 (group of developing countries) emerged. Major players: Brazil, India and China.

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The WTO negotiations: Will developing countries benefit from a new agreement?


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    1. The WTO negotiations: Will developing countries benefit from a new agreement?

    2. Introduction • The negotiations in Cancun ended without producing any agreement. • Indicator of a new balance of power. • The G20 (group of developing countries) emerged. • Major players: Brazil, India and China September7,2005

    3. developing countries: two obstacles! • Creating unified positions toward important issues; • Benefiting as much as possible from a new agreement. September7,2005

    4. The “July Package” • Adopted by WTO Members in August 1, 2004 • Established a framework for modalities (more detailed commitments). • Emphasized on the three pillars • market access • domestic support • export competition. September7,2005

    5. commitments • Reduction of the highest levels of trade distorting support and the highest tariffs. • Improvement of market access on all products. • Full elimination of export subsidies. September7,2005

    6. The running negotiations essentially focus on the technical issues under the three mentioned pillars. Mainly • converting “specific tariffs” based on values per ton into their 'ad valorem' equivalents. Another arguable matter • how to turn non trade barriers into tariffs. September7,2005

    7. Is the agreement possible? • Developed countries’ agricultural subsidies seem to be a stumbling block. • Are developed countries ready for a new Agreement on Agriculture ? • There are some reasons for cautious optimism: • The EU is prepared to negotiate on agricultural subsidies. • the multilateral talks are back on the rails again. • the expansion of EU membership will cause a reduction in its average subsidy. September7,2005

    8. Advantages The July package has been established: • enabling the parties to prepare shared proposals. • Offering time to prepare adjustment packages dealing with the tariff reductions. September7,2005

    9. Thescenario September7,2005

    10. Conclusions • Trade liberalization on a multilateral basis is likely to benefit all partners. • The agricultural reform would reduce rural poverty in developing economies. September7,2005

    11. Thank you September7,2005