The WTO negotiations: Will developing countries benefit from a new agreement?
September7,2005 Introduction The negotiations in Cancun ended without producing any agreement. Indicator of a new balance of power. The G20 (group of developing countries) emerged. Major players: Brazil, India and China
September7,2005 developing countries: two obstacles! Creating unified positions toward important issues; Benefiting as much as possible from a new agreement.
September7,2005 The “July Package” Adopted by WTO Members in August 1, 2004 Established a framework for modalities (more detailed commitments). Emphasized on the three pillars market access domestic support export competition.
September7,2005 commitments Reduction of the highest levels of trade distorting support and the highest tariffs. Improvement of market access on all products. Full elimination of export subsidies.
September7,2005 The running negotiations essentially focus on the technical issues under the three mentioned pillars. Mainly converting “specific tariffs” based on values per ton into their 'ad valorem' equivalents. Another arguable matter how to turn non trade barriers into tariffs.
September7,2005 Is the agreement possible? Developed countries’ agricultural subsidies seem to be a stumbling block. Are developed countries ready for a new Agreement on Agriculture ? There are some reasons for cautious optimism: The EU is prepared to negotiate on agricultural subsidies. the multilateral talks are back on the rails again. the expansion of EU membership will cause a reduction in its average subsidy.
September7,2005 Advantages The July package has been established: enabling the parties to prepare shared proposals. Offering time to prepare adjustment packages dealing with the tariff reductions.
September7,2005 The scenario
September7,2005 Conclusions Trade liberalization on a multilateral basis is likely to benefit all partners. The agricultural reform would reduce rural poverty in developing economies.
September7,2005 Thank you