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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. 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

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  1. WTO, Development and Developing Countries: Ten Years After Nagesh Kumar RIS www.ris.org.in South Centre Panel at WTO Public Symposium

  2. Outline • Multilateral trade negotiations and development • Emerging asymmetries • Implications for development • Some Issues for reform South Centre Panel at WTO Public Symposium

  3. 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

  4. 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

  5. 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

  6. 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

  7. 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

  8. 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

  9. 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

  10. 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

  11. 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

  12. 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

  13. 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

  14. Thank you South Centre Panel at WTO Public Symposium

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