The Doha Development Agenda State-of-Play A Brief Overview

1. The Doha Development AgendaState-of-PlayA Brief Overview Gerardo Thielen Institute for Training and Technical Cooperation World Trade Organization

2. INTRODUCTION Synthesis • Brief Background of Doha Round • Principal elements of the DDA • State-of-Play in the negotiations • The process ahead

3. BACKGROUND Doha Ministerial Conference 2001 • Background: Seattle, Millennium Round Ambitions, limits of Built-in-Agenda • Doha Declaration (WT/MIN/(01)/DEC/1) • Negotiation mandates + other work = Doha Development Agenda

4. Principal elements of the DDA Negotiations: • Agriculture and Services (Cotton added in 2003) • Non-agricultural Market Access (NAMA) • TRIPS (Register) • WTO Rules • Trade and Environment • Trade Facilitation (added in 2004) • Dispute Settlement Understanding (outside SU) • Special and Differential Treatment for developing countries

5. Principal elements of the DDA • Work under the General Council, but not part of Single Undertaking: • Electronic Commerce • Small Economies • Trade, Debt and Finance • Trade and Transfer of Technology • Relationship between TRIPS Agreement and the CBD, the protection of traditional knowledge and folklore. • Process Issues: • Single Undertaking – Consensus • Trade Negotiations Committee (TNC) • Doha Round conclusion 1 January 2005 • Concept of “Early Harvest” • Transparency/Inclusiveness and Bottom-up approach • Special & Differential Treatment/Development Dimension. Almost 70% of Members are developing.

6. From Doha to MC 7 in Geneva 2009 • 2002 – 2005 A tale of missed deadlines and insufficient political will - negotiations behind schedule. • After Hong Kong Ministerial Conference little appetite for another negotiation style meeting. • While important results at Hong Kong on agriculture, TRIPS etc. Members only inching slowly closer to agreement. Some negotiating fatigue. • Early 2009, some Members call for a “regular” ministerial conference. Takes place in December 2009 • World Leaders at G20 meetings have called for 2010 conclusion. Now longest multilateral negotiation ever (2011?).

7. 1995 Uruguay Round agreements,new WTO: goods, services, intellectual property 2000 Agriculture, services talks start March 2001 Doha Agenda launched November 2003 Cancún ministerial fails September 2004 Frameworks 1 August 2005 Hong Kong ministerial Dec 2006 talks suspended 24 July … 2007 talks resume 31 January 2008 – July Mini-Ministerial fail 2009– Global Economic Crisis, Geneva Ministerial Conference. 2010 March stocktaking CURRENT NEGOTIATIONS Pre-history(before UR): only goods Now: revised rules new commitments Future: rules revised again,more commitments

8. Why So Difficult? • The issues – large number and complex; • The high Level of Ambition; • 153 Members – consensus – Single Undertaking; • Public nature of negotiating – formulas instead of request-offers; • Complications arising from economic crisis and overall international agenda; • Electoral cycles;

9. The Development Dimension? • Special and Differential Treatment • In every element of the text • Applied in different ways depending on levels of development. • Less than Full Reciprocity; • Transparent and Inclusive Negotiating Process; • Big cuts needed in developed country farm subsidies – most distortive subsidies.

10. Developing Country Interests“not one size fits all” • Solidarity among developing countries, but differences clear – LDCs, SVEs, emerging economies. • North-South description in WTO is inaccurate and simplified. For example: • Preference Erosion • Agricultural Exporters v. Importers • Those seeking ambitious outcome in manufacturing/services versus those who take a more defensive position • TRIPS issues, GI extension and CBD

11. Agriculture - Key Issues • Flexibilities from overall reduction commitments: • Sensitive Products (largely for developed countries) • Special Products exclusively for developing countries; • Special Safeguard Mechanism (SSM) for developing countries; • The magnitude of the cut in cotton subsidies; • The fundamental trade-offs: • Domestic subsidy cuts in return for market access; • Political cost of providing the market access for some countries.

12. NAMA - Key Issues • Flexibilities to deviate from formula, e.g. • What coefficient for developing countries? Proposed coefficients of 20, 22 and 25. • At 20 countries apply half the formula cut on 14% of tariff lines or no cut to 6.5%. • With 22 it would be 10% with half cut and no cut with 5%. • No flexibility with 25; • Specific country circumstances, Argentina, South Africa and Venezuela; • Sectorals – voluntary, but some see as potential solution to higher coefficients. Basically creating duty free sectors.

13. Services - Key Issues • Market access – done bilaterally. Around 30 countries active in the negotiations; • LDC waiver – preferences, but in all areas or just market access not clear. • Domestic Regulation • Subsidies, safeguards • Sequencing/links with Agriculture and NAMA Modalities

14. TRIPS - Key issues • Multilateral Register for geographical indications for wine and spirits: • legal and participation issues divide Members • Extension of Geographical Indications • not a negotiation issue, but linked and controversial • Link between TRIPS and CBD • disclose the origin of genetic material and traditional knowledge used in their inventions when applying for a patent

15. Trade Facilitation - Key Issues • Negotiations to harmonize and streamline customs procedures. • Articles V, VIII and X in the GATT, dealing with goods in transit, fees and paperwork. • Capacity building/links to Aid for Trade.

16. Trade and Environment - Key Issues • Three mandates: • Closer co-ordination of trade and environmental policies – no conflict to date in DSB • Closer co-ordination between WTO Secretariat and MEAs • Market access for environmentally related goods and services

17. Development Dimension - Key Issues • Agreement specific S&D proposals totalling 88. Three categories -- 32 agreed. • Special and Differential Treatment – included in every segment of the negotiations; • Capacity Building/Aid for Trade • Trade Facilitation formula for linking implementation to reception of technical assistance

18. Rules - Key Issues • Anti-Dumping • Subsidies • Fisheries Subsidies • Regional Trade Agreements – Transparency Mechanism Review

19. Dispute Settlement Reform - Key Issues • Not part of the Single Undertaking, but clearly linked - Systemic Issue • How to improve, update in light of 15 year experience • Technical issues, sequencing and remanding; • Timetables, shorter response time; • Enabling greater developing country participation

20. What Next? • 80% of technical negotiation done, but Agricultural and NAMA “Modalities” still bogged down; Services also progressing slowly. • Economic crisis in 2008-9 saw first contraction (12%) in global trade for 50 years, some protectionist measures; • ...but crisis focused minds of WTO Members on other roles of the Multilateral Trading System – e.g. monitoring; • March 2010 stocktaking – some technical progress, but key political will absent. • G20– focus likely on international financial system and reform.

21. AustriaBelgium  Bulgaria Cyprus Czech R         Denmark Estonia Finland France Germany Greece Hungary Ireland Italy Latvia Lithuania    Luxembourg Malta Netherlands Poland Portugal Romania Slovakia Slovenia   Spain Sweden  UK Armenia FY Rep Macedonia Albania Croatia Georgia Jordan Moldova Oman USG–1 G–90 LDCs Bangladesh Cambodia Maldives   Myanmar Nepal ACP ChadBurkina Faso Burundi  Togo Central African Rep Djibouti    DR Congo Mali   Gambia   Guinea   Guinea Bissau    Lesotho    Malawi  Mauritania  Niger Sierra Leone    Rwanda    Recent new Hong Kong, Ch Saudi Arabia El Salvador Macao, Ch Singapore Kyrgyz R Qatar UAE Brunei Kuwait Bahrain Ecuador EU G-27 Solomon Islands Gabon Ghana Namibia Mexico G-20 Haiti Dominica Fiji Papua New Guinea Benin Madagascar Senegal Uganda Zambia India China Venezuela Belize Barbados Antigua/Barbuda Dominican Rep Grenada    Guyana St Vincent/Grenadines Trinidad/Tobago Jamaica   Suriname St Kitts/Nevis      St Lucia Botswana Cameroon Congo Côte d’Ivoire Kenya Mozambique Tanzania Cuba Indonesia Pakistan Philippines G-33 Chile Brazil Bolivia Guatemala Uruguay   Thailand   Paraguay Argentina     Honduras  Mongolia Nicaragua           Panama     Peru   Sri Lanka   Turkey Nigeria Zimbabwe Australia Canada  Colombia Costa Rica Malaysia New Zealand Mauritius R Korea Angola Swaziland Egypt Iceland  Israel  Japan    Liechtenstein  Norway Switzerland Ch Taipei Tunisia Morocco Cairns Group African Group G-10 South Africa