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Fallout of the Doha Round

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GEOG 216
Geraldine Akman

Fallout of the Doha Round Uruguay Round of Negotiations (1986-94) - Highlights - Negotiate domestic agricul policies (ex: prevent pests, contaminated products) - Cap + reduce export subsidies - Discuss converting non-tariff barriers to tarrifs + reducing barriers altogether - Maintain sound science basis for sanitary barriers - Weaknesses of the Uruguay Round - Loopholes + circumvention (of new rules by more powerful/rich nats) - Actually did little to liberalize trade  OECD nats still subsidize farmers (directly/indirectly)  Sell agricul products @lower price on gl/market, outcompete other sellers (dev’g nats) - Took 7 years to discuss which issues were most imp to discuss @next round Doha Round (2001) - China invited to join WTO, post 9/11 - 2/3 of Doha members were developing nats - Nov 2001: takes place in Doha, Qatar - Top issue for poorer nats = liberalization of agricul (their main export) - Also want Uruguay agreements fully implemented (rules pertaining to textile industries) - Deal brokered in principle on medical patents  poor nats given access to cheaper drugs (HIV/AIDS/TB/Malaria) - WTO says they can lift patents after 20 years, so pharmaceutical companies + R&D companies can make profit - H: in case of lifting of patents will be too slow, can’t respond fast enough to crisis - Solution: generic formulas of imp medications that can be produced domestically in devel nats - Issues = bio-piracy (only recog when affects developed nats) - Environ + poverty reduction high on agenda - Devel’g nats feared that ‘lax environ policies’ would be used against their exports - Developed nat could say ‘your environ policies are not up to standard, import your products’ Farm Subsidies are Still Concealed (2005) - EU + US told to cutback export subsidies that allow surplus to be dumped elsewhere - Subsidies created over production - Surplus sold @lower than market price in other nats - Distort world prices by excess of low price commodities - EU + US ‘redefine’ but did not ‘reduce’ their subsidies - Developed nats ‘cheat’  call subsidies as ‘tax rebates’ etc. - Hard to calc extent of real subsidies being used - No change since 1986 The Comparisons Across Countries of Producer Supports - Problem for developing countries - Cont use of subsidies by developed nats make their exports cheaper - Devel’g nats have hard enough time producing enough to feed their own populations - Can’t also compete w/these lower prices (b/c of dumping, also distorts world prices) The Question of Equity in Global Trade - Equity for export crops - Satisfy economic self-interest of EICs - Trade better than aid  Why spend millions of dollars in aid, just trade fairly, open up markets to these dev’g nats? - Prevent adverse geopolitical effects  Prevent terrorism? If developed nats do not bully the devel’g? - Prevent illegal immigra
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