The Fate of Doha Development Agenda

Non-Agriculture Market Access (NAMA)

The Member countries had reduced and bound their tariff rates under earlier negotiations; under these negotiations the tariff cuts by developed countries were deeper, mainly covering the products of their mutual trade interests. The Doha Negotiations aim at further reducing or eliminating tariffs, including tariff peaks, high tariffs and tariff escalations (higher rates on finished products and lower on semi-manufactures and raw materials), as well as non-tariff barriers, especially where the products are of export interest to developing countries The negotiations are also required to take into account the special needs and interests of developing countries, including less than full reciprocity in reduction commitments. In negotiations, the developing countries are focusing on reduction of peaks and escalation of tariffs in developed countries that are restraining their exports (like textiles, clothing and leather manufactures) whereas the developed countries are seeking greater market access in newly emerging economies, like China, India and Brazil. The General Council in July/August 2004 adopted the negotiating framework. The Ministerial Meeting in Hong Kong in December 2005 agreed that the negotiating modalities should be finalized by 30April 2006 followed by draft schedule of concessions by 31 July 2006. The Meeting also adopted the Swiss Formula  for reduction of tariffs. No further progress has been made. Also, there is no agreement on the coefficients that may be used in reducing tariffs by developed and developing countries.    

Trade in Services

The Members had assumed general obligations such as Most Favoured Nation (MFN) treatment to services of other partners and binding commitments on specific services. The Doha Negotiations aimed at progressively higher liberalization and commitments. Guidelines and procedures were agreed in 2001and members were required to exchange ‘Requests’ seeking concession from others and ‘Offers’ indicating willingness to extend concessions. The preparation and exchange of ‘Request’ and ‘Offer’ was a complex and time consumer process involving four modes of transactions in respects of hundreds of items among 153 members. Thus, the progress remained slow and further work suspended in July 2006.

Other Issues

Negotiations in other areas, like intellectual property rights, environment, trade facilitation, dispute settlement and aid for trade are aimed at improving the trading environment, removing bottlenecks and facilitating movement of goods and services across borders. Progress in these areas has been over shadowed by lack of progress in critical areas.