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WTO, Development and Developing Countries: Ten Years After. Nagesh Kumar RIS www.ris.org.in. Outline. Multilateral trade negotiations and development Emerging asymmetries Implications for development Some Issues for reform. Multilateral Trade Negotiations and Development.

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wto development and developing countries ten years after

WTO, Development and Developing Countries: Ten Years After

Nagesh Kumar

RIS

www.ris.org.in

South Centre Panel at WTO Public Symposium

outline
Outline
  • Multilateral trade negotiations and development
  • Emerging asymmetries
  • Implications for development
  • Some Issues for reform

South Centre Panel at WTO Public Symposium

multilateral trade negotiations and development
Multilateral Trade Negotiations and Development
  • Process of trade liberalization for reaping efficiency gains
  • Recognition of different levels in development and capacities of countries
  • Concept of special and differential treatment (S&DT) incorporated

South Centre Panel at WTO Public Symposium

trade and development since the uruguay round
Trade and Development since the Uruguay Round
  • Turning point
  • Major commitments in trade liberalization
  • Substantial obligations placed on developing countries: TRIPs, TRIMs and GATS
  • Promise of market access in agriculture, textiles and clothing and GATS mode 4
  • These promises not coming through

South Centre Panel at WTO Public Symposium

trade liberalization in developed countries growing asymmetries
Trade Liberalization in Developed Countries: Growing Asymmetries
  • High Peak Tariffs, Tariff Escalation and Specific Duties
    • Specifically on goods exported by poor countries
  • Elusive Market Access in Textiles and Clothing
  • Continued Protection of Agricultural Products

South Centre Panel at WTO Public Symposium

trade liberalization in developed countries growing asymmetries 2
Trade Liberalization in Developed Countries: Growing Asymmetries 2
  • Resistance to Movement of Natural Persons
  • Quotas and Non-tariff Barriers
  • Stringent Environmental Requirements
  • Contingent Protection: Anti-dumping
  • Proliferation of RTAs/FTAs

South Centre Panel at WTO Public Symposium

protectionist industrial policy
Protectionist Industrial Policy
  • Growing R&D Subsidies
  • Distortionary Investment Incentives
  • Export Subsidies to Manufacturers
  • Growing Subsidies to Agriculture
  • Continued Use of policies akin to Local Content Requirements

South Centre Panel at WTO Public Symposium

implications for development
Implications for Development
  • GATT/WTO not related to trade liberalization or growth of trade: empirical studies
  • Trade liberalization and development: evidence
  • Declining terms of trade and share of developing countries in world trade
  • Adverse mercantilist balance
  • Substantial income transfers and loss of policy space
  • Record of growth in 1990s has been poorer compared to 1980s and inequalities have risen
  • Inequitable sharing of the fruits of globalization

South Centre Panel at WTO Public Symposium

doha development agenda
Doha Development Agenda
  • A new round of trade negotiations launched in 2001 in Doha
  • Attempt to address some of the development concerns:
      • Phase-out of all export subsidies on agricultural products and substantial reduction of domestic support
      • Elimination of peak tariffs on products of export interest to developing countries; modality for tariff reduction based on less-than-full-reciprocity
      • Primacy of public health over IPRs
      • Launch of negotiations on Singapore Issues only on the basis of ‘explicit consensus’ at the Fifth Ministerial
      • Review of S&DT provisions to make them effective

South Centre Panel at WTO Public Symposium

progress of the doha agenda
Progress of the Doha Agenda
  • Going back on the spirit of Doha Development Agenda
      • Agricultural subsidies vs. market access
      • Non-agricultural market access
      • Push to launch negotiations on Singapore Issues at Cancun; dropped only in the July Package after the collapse
      • No progress on making S&DT provisions

South Centre Panel at WTO Public Symposium

collapse of cancun ministerial
Collapse of Cancun Ministerial
  • A Case-Study in Asymmetric Process of Decision-making
      • Draft Ministerial texts heavily influenced by the submissions by the Quad countries
      • Neglected the widely supported submissions by developing country coalitions
        • Singapore Issues; Agriculture
        • Cotton subsidies
      • A question mark on the sustainability of the multilateral trade negotiations

South Centre Panel at WTO Public Symposium

an agenda for reform
An Agenda for Reform
  • An Independent Commission for Development Assessment of the system
  • Reform of the decision-making process
  • Broad-based and representative secretariat
  • WTO Watchdog of Developing Countries
  • Strengthening the Provision of Technical, Legal and Financial Assistance
  • Support for Trilateral cooperation

South Centre Panel at WTO Public Symposium

some issues for proactive action by developing countries
Some Issues for Proactive Action by Developing Countries
  • Framework Agreement on Movement of Natural Persons
  • Framework Agreement on S&DT
  • Framework Agreement on Transfer of Technology
  • Framework for Protection of Traditional Knowledge and Biodiversity

South Centre Panel at WTO Public Symposium

thank you
Thank you

South Centre Panel at WTO Public Symposium