The Doha round of WTO talks

* Angela Balakrishnan
* guardian.co.uk,
* Monday July 21, 2008

Why it is called the Doha round?

These trade negotiations got their name because they started in Doha, Qatar. They were meant to have begun at the World Trade Organisation ministerial conference of 1999 in Seattle and would have been called the millennium round but some developing countries refused join, partly because of their dissatisfaction with the outcomes of the Uruguay round.

What is the point of the talks?

The Doha round is aimed at liberalising global trade to make importing and exporting cheaper and easier, with a special emphasis on improving the economies of developing countries. Negotiators hope to reach an agreement that will see many of the WTO's 152 countries cut subsidies to their producers and stop protecting home markets by lowering tariffs to let goods in. A deal to increase trade with developing nations to help bridge the divide between rich and poor nations is also hoped to be reached.

What is the time frame?

The negotiations started in 2001 and have been crawling along ever since, with meetings around the world and deadlines constantly being missed. Originally the deadline was set to be January 2005 but the talks reached deadlock during meetings in 2003, 2005, 2006 and 2007. They have collapsed three times over the last seven years.

The US presidential elections also set a cut-off date as the end of June last year, since Congress needs to ratify any US part of the deal for it to become law. Officials were seen as being unwilling to extend this deadline. However, talks began again today.

What are the main issues of contention?

Domestic producers are very nervous about the impact of freeing up trade rules and reducing protection for their industries. They want extra export opportunities in compensation. Negotiators are having most difficulty reaching agreement on agricultural trade and manufactured goods. The agricultural side is stuck in a row over bananas, with Latin America calling for easier access to Europe but Africa, the Caribbean and Pacific producers resisting. Meanwhile, developing countries think they are being asked to allow too much access for manufactured goods to their markets.

What are the potential gains?

The World Bank has estimated that a deal could generate £145bn extra trade by 2015, helping to lift some developing countries out of poverty and also end the food crisis gripping low-income countries because of soaring food prices.

Why is the US election so important?

The US commitment to the talks has been ensured by president George Bush. However, it is unclear whether the next president of the world's largest and most influential economy will commit to negotiations. Democrat Barack Obama has indicated that he wants to protect US producers while Republican John McCain is a staunch proponent of free trade and has vowed to pushed for lower subsidies and trade barriers, which could provide a much needed breakthrough.

However, a bill about to go through Congress would preserve high subsidies for farmers in the US, making a global deal almost impossible.

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