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Last update - November 2012

the doha round

Background

The Doha Round is the latest in a series of broad trade negotiations among WTO members. Its aim is to achieve major reform of the international trading system through the introduction of lower trade barriers and revised trade rules. The work programme covers about 20 areas of trade. The Round is also known semi-officially as the Doha Development Agenda as a fundamental objective is to improve the trading prospects of developing countries.

The Round was officially launched at the WTO’s Fourth Ministerial Conference in Doha, Qatar, in November 2001. The Doha Ministerial Declaration provided the mandate for the negotiations on issues which include agriculture, services, trade in goods and a wide range of WTO rules.

In Doha, ministers also approved a decision on how to address the problems developing countries face in implementing the current WTO agreements which were negotiated earlier.

How the negotiations are organized

The negotiations take place in the Trade Negotiations Committee and specific negotiating groups. Other work under the work programme takes place in the relevant WTO councils and committees.

Virtually every item of the negotiation is part of a whole and indivisible package and cannot be agreed separately. This is known as the “single undertaking” where in the negotiations “Nothing is agreed until everything is agreed”.

What are the benefits of the Doha Round?

Although estimates vary, many economists believe a Doha Round package on market access in all goods, and on agricultural subsidies, could add US$121 billion to US$ 202 billion to the world economy. A trade facilitation agreement, which would cut red tape and streamline customs procedures, could through greater transparency and predictability when crossing borders lead to an increase in trade in manufactured products by 0.7%

Some economists warned of the harm that failure to reach a deal might cause. If governments raised obstacles to imports of goods and services to the maximum allowed under their present commitments (going to the highest tariffs legally bound in the WTO, and the minimum market opening they committed in services), this could slash world trade in goods and services by almost 10%.

“The hard work that governments have put into this round during the past nine years of negotiations has resulted in some remarkable achievements. Implementation of the gains already achieved would deliver a trading system that is more equitable, more efficient and more effective,” said Director-General Pascal Lamy.

State of play in the negotiations

At the General Council on 3 October 2012, the Director-General urged the WTO membership to focus on “deliverables”, that is those areas of the negotiations where an accord is within reach of WTO members.

He noted that work on the Doha negotiations had seen some new signs of re-engagement in recent months. He stressed that all options should be closely examined to see where incremental progress on the negotiating agenda is achievable. He stressed the need to seriously engage in bridging gaps on such issues.

Many delegations referred to trade facilitation as an area where technical work was continuing to advance. A number of delegations stressed that progress in agriculture was also essential. Delegations also spoke about the centrality of development and of least-developed country (LDC)-related issues in any deliverable package.

In a speech delivered on 24 October 2012 to Ministers of Trade for the Group of African, Caribbean and Pacific (ACP) members, DG Lamy said the cost of moving goods across the border today is roughly 10% of the value of global trade. A WTO trade facilitation agreement could bring this down to 5%, hence the economic impact of streamlining red tape and standardization. The negotiations are an important opportunity for developing countries, especially least-developed countries and landlocked developing countries, to upgrade their trade architecture.

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