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World Trading System and Development: Issues and Challenges

This symposium explores the issues and challenges faced by developing countries in the world trading system. From trade liberalization to Doha Development Agenda, the symposium highlights the asymmetries, protectionist industrial policies, and implications for development. It proposes proactive actions for developing countries and reforms to strengthen their position in the system.

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World Trading System and Development: Issues and Challenges

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  1. World Trading System and Development: Issues and Challenges Nagesh Kumar RIS www.ris.org.in WTO Public Symposium

  2. 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 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 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 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 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 WTO Public Symposium

  8. Implications for Development • GATT/WTO not related to trade liberalization or growth of trade: empirical studies • 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 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 WTO Public Symposium

  10. Progress of the Doha Agenda and Cancun • All the important deadlines for Doha Agenda were missed in the pre-Cancun phase • 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 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 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 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 WTO Public Symposium

  14. Thank you WTO Public Symposium

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