RIS South Centre Panel at WTO Public Symposium 1 WTO, Development and Developing Countries: Ten Years After Nagesh Kumar RIS

RIS South Centre Panel at WTO Public Symposium 2 Outline Multilateral trade negotiations and development Emerging asymmetries Implications for development Some Issues for reform

RIS South Centre Panel at WTO Public Symposium 3 Multilateral Trade Negotiations and Development Process of trade liberalization for reaping efficiency gains Recognition of different levels in development and capacities of countries Concept of special and differential treatment (S&DT) incorporated

RIS South Centre Panel at WTO Public Symposium 4 Trade and Development since the Uruguay Round Turning point Major commitments in trade liberalization Substantial obligations placed on developing countries: TRIPs, TRIMs and GATS Promise of market access in agriculture, textiles and clothing and GATS mode 4 These promises not coming through

RIS South Centre Panel at WTO Public Symposium 5 Trade Liberalization in Developed Countries: Growing Asymmetries High Peak Tariffs, Tariff Escalation and Specific Duties –Specifically on goods exported by poor countries Elusive Market Access in Textiles and Clothing Continued Protection of Agricultural Products

RIS South Centre Panel at WTO Public Symposium 6 Trade Liberalization in Developed Countries: Growing Asymmetries 2 Resistance to Movement of Natural Persons Quotas and Non-tariff Barriers Stringent Environmental Requirements Contingent Protection: Anti-dumping Proliferation of RTAs/FTAs

RIS South Centre Panel at WTO Public Symposium 7 Protectionist Industrial Policy Growing R&D Subsidies Distortionary Investment Incentives Export Subsidies to Manufacturers Growing Subsidies to Agriculture Continued Use of policies akin to Local Content Requirements

RIS South Centre Panel at WTO Public Symposium 8 Implications for Development GATT/WTO not related to trade liberalization or growth of trade: empirical studies Trade liberalization and development: evidence Declining terms of trade and share of developing countries in world trade Adverse mercantilist balance Substantial income transfers and loss of policy space Record of growth in 1990s has been poorer compared to 1980s and inequalities have risen Inequitable sharing of the fruits of globalization

RIS South Centre Panel at WTO Public Symposium 9 Doha Development Agenda A new round of trade negotiations launched in 2001 in Doha Attempt to address some of the development concerns: Phase-out of all export subsidies on agricultural products and substantial reduction of domestic support Elimination of peak tariffs on products of export interest to developing countries; modality for tariff reduction based on less-than- full-reciprocity Primacy of public health over IPRs Launch of negotiations on Singapore Issues only on the basis of explicit consensus at the Fifth Ministerial Review of S&DT provisions to make them effective

RIS South Centre Panel at WTO Public Symposium 10 Progress of the Doha Agenda Going back on the spirit of Doha Development Agenda Agricultural subsidies vs. market access Non-agricultural market access Push to launch negotiations on Singapore Issues at Cancun; dropped only in the July Package after the collapse No progress on making S&DT provisions

RIS South Centre Panel at WTO Public Symposium 11 Collapse of Cancun Ministerial A Case-Study in Asymmetric Process of Decision-making Draft Ministerial texts heavily influenced by the submissions by the Quad countries Neglected the widely supported submissions by developing country coalitions –Singapore Issues; Agriculture –Cotton subsidies A question mark on the sustainability of the multilateral trade negotiations

RIS South Centre Panel at WTO Public Symposium 12 An Agenda for Reform An Independent Commission for Development Assessment of the system Reform of the decision-making process Broad-based and representative secretariat WTO Watchdog of Developing Countries Strengthening the Provision of Technical, Legal and Financial Assistance Support for Trilateral cooperation

RIS South Centre Panel at WTO Public Symposium 13 Some Issues for Proactive Action by Developing Countries Framework Agreement on Movement of Natural Persons Framework Agreement on S&DT Framework Agreement on Transfer of Technology Framework for Protection of Traditional Knowledge and Biodiversity

RIS South Centre Panel at WTO Public Symposium 14 Thank you