Agriculture-The Deal Dlock of Doha

AGRICULTURE- THE
DEAL DLOCK OF DOHA
SUBJECT CODE — MGT511
BUSINESS ENVIRONMENT
SUBMITTED TO— MR. LOKESH JAISHREE (LECTURER LSB )
SUBMITTED BY -- ANUPAM KUMAR , MBA
ROLL.NO –RR1002B44
REG.NO. 11005012
CONTANTS
1. INTRODUCTION
2. ANALYSIS
3. IMPACT ON ASIA
4. IMPACT ON INDIA
5. CONCLUSION
6. SUGGETIONS
INTRODUCTION
This study is all about the WTO deal of Doha with special negotiation to
agriculture and it’s impact on India. The fourth WTO ministerial conference
was held in Doha in November 2001. In this meeting the ministers adopted a
broad programme for the coming year, called “Doha Development Agenda”. It
envisaged negotiations on improving the market access and variety of other
challenges facing the trading system.
The Doha Development Agenda, was the first multilateral trade negotiation
specifically dedicated to improving the trading environment for developing
countries. Now, more than eight years on, many believe the outlines of this
deal offer a great deal for developing countries. Many others take the view
that the results to date have been disappointing. So the question today is:
what is on the table in the Doha Development Round for developing countries?
the Doha Round is still a work in progress even though it has been going on for
more than eight years. Already there is substantial agreement on how to cut
tariffs and subsidies in agriculture and on manufactures in a way that would
substantially benefit developing countries as a whole. The agreement is still
not yet ratified because there are concerns about how the gains from trade
will be distributed among the WTO participants. And indeed, there is a
question of whether there is enough on the table to ensure that the overall
deal will be ratified in some of the major industrial countries.
So still more work to be done .But the work has to go beyond what is done in
agriculture and manufactures because WTO Agreements only create
opportunities; they do not guarantee sales. And so for a developing country,
and particularly for the poorest countries, there has to be a way to take
advantage of the opportunities created to export more to industrial markets
and to other developing countries.
And therefore what is done on services, on trade facilitation and improving

customs and port facilities, and encouraging investments in infrastructure in
the developing countries, in roads and transportation and telecommunications
networks. All these things are important aspects of a deal that needs to be put
together to ensure that developing countries not only have the rights in the
WTO but also have the ability to sell more so they can help use trade to
promote their economic development.
ANALYSIS
Since the Doha Round was launched the agricultural negotiations have
staggered from crisis-to-crisis but recently the elements of a potential deal
have emerged. While a few difficult issues remain to be resolved, it appears a
deal could be finalized rather quickly if there was sufficient political will to do
so. Unfortunately, it is not clear that this political will exists.
The main issues in WTO Doha deal for agriculture are as follows-
Improving Market access:

As far agriculture was concerned, the negotiations were to open markets and
reduce with a view to phasing out all forms of export subsidies and trade-
distrorting, domestic farm support. The market access for industrial goods was
declared to be another priority, and the negotiating mandate focused on
reducing or eliminating tariffs peaks and escalation as well as the removal of
other non—tariff barriers. Particular attention was paid to product of export
interest to developing countries.
Singapore Issues to the fore:

It was agreed that negotiation on the Singapore issues would take place after
the next ministerial conference, but only on the basis of a decision by explicit
consensus to be taken at that session on the modalities for negotiations.
Trade and Environment:

A commitment on environment was also taken, and governments would
negotiate the relationship between the existing WTO rules and the trade
obligations contained in the multilateral environment agreement. They would
also negotiate the reduction or elimination of tariffs and non-tariffs barriers to
environmental goods and services.
CANCUN MINISTERIAL MEETING, 2003
The fifth Ministerial meeting took place in Cancum, MexIco, in September
2003. After the launching of the Doha Development agenda in November
2003, ther had been intensive negotiation among WTO members to meet dead
lines that were established in the Doha declaration and where an agreement
wase to be reached prior to the meeting.
Missed Deadlines
In particular, modalities were to be established fore further liberalisation of
trade in both industrial and agricultural goods. In these modalities, it quickly
become clear that an agreement on agriculture would not come that easily .
despite the numerous proposals from the members, there was no agreement
on how to achieve substantial improvements in the market access in
agriculture along with an phase out of all forms of export substantial
reduction in the trade –distorting , domestic support.
No Agreement at Cancun:
Despite further intensive negotiations among ministers at Cancun, no
agreement could be struck on a number of core issues . There was a
disappointment on the parts of some particularly impoverished developing
countries that a more positive result could not be achieved in removing trade
distorting subsidies for agricultural product of special export interest.
Issues After Cancun:

The Doha of trade negotiations which received a set back , after Cancun 2003
the members adopting frame work agreement on august 2004 , the framework
is at an interim stage , ad further negotiations including those on details
modalities and preparing the specific commitment of each member in respect
of agriculture (AMA) and non- agriculture market access.
Negotiation on agriculture have focused on achieving progressive and

substantial reforms in global agriculture trade. The framework Agreement
explicitly agrees to eliminate export subsidies by a credible end date. The
framework also recognises the critical importance of agriculture to the
economic development of developing countries. Trade facilitation essentially
refers to simplification, harmonisation , and computerisation of customs-
clearance procedures.
The Doha Deadlock from the Asian Perspective

Against the backdrop of the financial crisis with national governments focused
on saving their industries, and the ominous atmosphere of the recent Davos
World Economic Forum, countries are beginning to seriously question the
ability of free-market economies to provide never-ending gains, and more are
inclined to turn towards trade protectionism. This is not good news for the
Doha Development Round, as it already faces difficulties with failed
negotiations, most recent in July 2008. Once again everyone is asking
themselves - Will we ever come to see the conclusion of the Doha Round of
global trade negotiations? Launched in November 2001 in Qatar’s capital city
by the World Trade Organization (WTO), the Doha Round of trade negotiations
aims to reduce tariff ceilings for agricultural and industrial goods, cap allowable
farm subsidies, and liberalize trade in services. The Doha talks have centered
on two main areas of trade in farm goods and industrial products, or non-
agricultural market access (NAMA). At the time of its inception, trade ministers
were determined to liberalize trade “to promote recovery, growth, and
development.” However, hope in the Doha Round was quickly diminished at
the Cancun ministerial in 2003, with talks ending much earlier than expected.
Because positions remain divergent, Pascal Lamy, Director-General of WTO
decided not to call the negotiators back to the table in December last year . On
13 February 2009, Yokohama National University (YNU), supported by United
Nations University Institute of Advanced Studies (UNU-IAS), hosted an
International Symposium on the Doha Development Agenda with leading Asian
trade experts from Japan, China, India and Korea, to discuss the possibility of
reviving the Doha Round. The presentations by country representatives were
followed by a panel discussion with Araki Ichiro of YNU and Md.
Khorseduzzaman of Macquarie University. The importance of maintaining a
multilateral trading system, avoiding the spiral of protectionism, and bringing
confidence and political will back into the Doha Round of negotiations was
highlighted by all participants. However, many challenges lie ahead such as the
current lack of a US position and there is concern that the current financial
crisis has become a higher priority than successfully completing the Doha
Round.
The place of the Doha Round on the world agenda can be restablished if key
states reaffirm their commitment to the negotiations at the London G-20
summit in April, at the OECD ministerial in June, and APEC in July. Encouraging
domestic demand through convincing industries of the benefits of WTO will
also improve the position of the Doha Round.
Suzuki Hideo from the Ministry of Economy, Trade, and Industry of Japan
reiterated why Doha matters, as it has the potential to lower tariffs in 153
countries simultaneously. This is especially important for Japan as 96% of
Japanese trade is with WTO member states. Secondly, the Doha Round can
help regulate anti-dumping duties and subsidies, which are likely to increase in
the face of new protectionist measures. Thirdly, the Doha Round can ease
trade distorting effects of Free Trade Agreements (FTAs) which can otherwise
be difficult for developing countries to negotiate with developed countries.
Lastly, the conclusion of the Doha Round supports the credibility and
effectiveness of the WTO’s dispute settlement process, where request for
compliance is made possible regardless of the size or influence of the member.
Hwang Soon-Taik, Minister of Economic Affairs of Korea, encouraged resuming

talks based on the July agenda, mainly addressing reforming the structure of
the agricultural sector and revising the anti-dumping agreements. He also
urged the US back to the negotiation table, and that the WTO should serve as a
monitoring agent to avoid protectionism, while reiterating that Korea must
stimulate its economy that inconsistent with the WTO agreements, and
certainly not through protectionism.
Biswajit Dhar of the Indian Institute of Foreign Trade emphasized that

agricultural development is necessary before any agreement can be reached,
especially in regards to tariffs and the special safeguard mechanism. He raised
other key Doha Round issues, such as making the General Agreement on Trade
in Services (GATS) more operational, addressing intellectual property rights
especially in regards to access to medicine and building knowledge in
developing countries, ensuring that trade rules are consistent with
environmental regulations, and reforming the functions of the dispute
settlement mechanism.
Fu Xingguo, Ministry of Commerce of the People’s Republic of China, described

protectionism as a contagious disease, which helped to break the promise of
concluding the Doha Round in 2008 since countries were moving to save their
domestic industries. He encouraged reinvigorating the Doha Round for global
economic revival, although the sensitivities and difficulties are well recognized.
Trade ministers have come too close to success to allow the Doha Round to fail
now, as progress has been made over the trade negotiation’s span of seven
years. However, the renegotiation of the Doha Round is ill-timed with the
current state of the world economy and the acrimony that has plagued the
talks. The July negotiation collapse was a huge blow and puts WTO’s credibility
at risk, though Director-General Lamy has remained relentless, successfully
convening the summit in Geneva. The change in the US administration also has
the potential to affect future talks. Due to the economic outlook and the lack
of political will of member states, the world knows it will have to wait for the
next round of negotiations

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AGRICULTURE- THE

DEAL DLOCK OF DOHA

SUBJECT CODE — MGT511

SUBMITTED TO— MR. LOKESH JAISHREE (LECTURER LSB )

SUBMITTED BY -- ANUPAM KUMAR , MBA

And therefore what is done on services, on trade facilitation and improving

Improving Market access:

Singapore Issues to the fore:

Trade and Environment:

Issues After Cancun:

Negotiation on agriculture have focused on achieving progressive and

The Doha Deadlock from the Asian Perspective

Hwang Soon-Taik, Minister of Economic Affairs of Korea, encouraged resuming

Biswajit Dhar of the Indian Institute of Foreign Trade emphasized that

Fu Xingguo, Ministry of Commerce of the People’s Republic of China, described

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