Explain the Purpose Behind the Wto’s Doha Round of Trade Negotiations. Why Has This Round Proved so Difficult to Conclude? What Are the Likely Consequences for the World Economy If the Doha Round Fails?

3039 Words Dec 2nd, 2012 13 Pages
Explain the purpose behind the WTO’s Doha round of trade negotiations. Why has this round proved so difficult to conclude? What are the likely consequences for the world economy if the Doha round fails?

The World Trade Organization has proven to be the top most successful joint trade institution of the 20th century. In spite of the lack of a central authority, the WTO has sustained trade assistance for the better half of the last five decades. Over which time the influence of the association has increased both in terms of developed and underdeveloped country membership, as well as achieving significant expansion and scope of its original mandate, but not without its problems. Yet despite numerous setbacks the WTO remains an important
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Namely (the EU, the US, Australia, India, Japan, and Brazil) with regard to agreement on various modalities of talks concerning issues of key elements covered by agricultural and non-agricultural market access (NAMA).

As of November 2007, the Doha round according to EU Trade Commissioner Mandelson (2007), suggests negotiations, especially in the agricultural sector may have shaped the framework of an agreement offering up to three times the value of the Uruguay Round. The package centred on the EUs proposal to reduce by 50% its farm tariffs, ensuring within a banded system that the uppermost tariffs would be reduced significantly. In addition the EU proposed a reduction of up to 70% of general trade altering farm support, and the abandonment of export subsidies, with the proviso that others follow similar policies. Interestingly these proposals were described as some of the most noteworthy changes to the “liberalization of farm trade,” policy in world trade history, (Polaski, 2007). Mandelson goes on to suggest the EU calculated the proposed steps would pave the way for the creation of multiple thousands of tonnes of newly created market access, in products such as beef, poultry, and milk. As well as providing a trade platform for other exporters, not limited to developing countries, as the EU withdraws support from trade distorting practices. Which should result in some EU farms exiting global markets such as the ones mentioned above.

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