The Doha Development Agenda: Issues of Process and Substance Parr Rosson Texas Cooperative Extension...
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![Page 1: The Doha Development Agenda: Issues of Process and Substance Parr Rosson Texas Cooperative Extension Texas A&M University System American Agricultural.](https://reader036.fdocuments.in/reader036/viewer/2022062408/56649ec05503460f94bcc0bb/html5/thumbnails/1.jpg)
The Doha Development The Doha Development Agenda:Agenda: Issues of Process Issues of Process and Substanceand Substance
Parr RossonTexas Cooperative ExtensionTexas A&M University System
American Agricultural Economics Association, Annual Meetings
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ProcessSubstance-Not Much Progress
740+ Brackets in Text
Three Pillars of Policy ReformTrade Distorting Domestic Support
Market Access
Export Competition
Doha Development Agenda
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Process: Doha Timeline
Initiated Negotiations in Agriculture, March 2000 (WTO Ag Committee)Doha ‘Round’ Began November 2001, Doha, QatarCancun, 2003-FailureGeneva, 2004-Work Program, Modest Success
Year 1, 20% Cut in Trade Distorting Domestic Support & Export Competition
Hong Kong, 2005-Faliure
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Process (continued)April 2006, Modalities-Failure
June 2006, Modalities-Failure
July 2006-DG Lamy’s Shuttle Diplomacy, Results Pending, But ‘Crisis’ Acknowledged & G-8 Briefed
July 31, 2006-Modalities & Schedules: DG Lamy Suspends DDA, July 24, 2006
December 31, 2006-Negotiations Were to Conclude
July 1, 2007 Trade Promotion Authority Expires
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Agricultural Trade Weighted Tariffs
Source: Jean, Laborde and Martin (2005a)
AverageBound tariff
%
MFN applied
Tariff%
Actual applied
Tariff%
Developed Countries 27 22 14
Developing Countries 48 27 21
Less Developed 78 14 13
WORLD 37 24 17
‘Binding Overhang’ is Problematic
Any Negotiated Reductions Start at Bound Rates
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Impact of Proposals on Ag Tariffs
70%
30%
‘Negotiating Gap’ of 40%
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Tariff Levels-Percent Percent Reduction
0 to < 20-30 20-65
20-30 to 40-60 30-75
40-60 to 60-90 35-85
> 60-90 42-90
Tariff Cuts, Developed Countries
Summary, EU, US & G-20 Proposals by WTO Chair, Ag Committee, June 22, 2006.
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Tariff Levels-Percent (Max Bound Duty 150%)
Percent Reduction
0 to < 20-50 15 - < 65
20-50 to 40-100 20 - < 75
40-100 to 60-150 25 - < 85
> 60-150 30 - < 90
Reductions summarized by WTO Chair, Ag Committee, June 22, 2006.
Tariff Cuts, Developing Countries
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Sensitive Product Designation-All Countries
1% vs. 15% of Tariff Lines, with 10,000+ Lines, 100 vs. 1,500 Protected Products20% Designated Sensitive, 90% of G-20 Ag Trade Protected, So No Real Increase in Market Access
Special Products-Developing & Less Developed Countries
Longer Time Period/Less ReductionSpecial Safeguards-AllIssue: Way Too Much Protection to Provide Significant Market Access
Other Market Access Issues
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Food AidCash vs. In-Kind
Export Credits< 180 Most Cases
State Trading EnterprisesEliminate Monopoly Power
Differential Export Taxes-Little ProgressExport Subsidies
Eliminate by 2013Eliminate by 2013
Export Competition
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Where Are We in Doha??
Negotiations Suspended Indefinitely
U.S. Under Pressure from EU & G-20 to Offer More in TDDS Cuts
U.S. Pressuring EU, Japan & G-20 to Cut Tariffs More
EU Resistant, Especially France
TPA Expiration LoomsVery Difficult Time in U.S. Congress
Might TPA Be Extended to Support Bilateral/Regional and MTN??
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Implications of Doha Failure
Five Years Down the Drain
Continued Restrictions on ‘South-South’ Trade, Stifling Development
Protectionism & All that Accompanies It
Credibility & Future of WTO, Especially Related to Agriculture
More Litigation/Dispute Settlement?
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SummarySuspension is a Setback, May Be Overcome
Market AccessSensitive Product Designation Possible Loophole
Deep Tariff Cuts for Developing Countries Difficult to Reconcile
Export CompetitionElimination of Subsidies is Significant
U.S. vs. EU/G-20 Very Far Apart on Reductions in Tariffs & TDDS
Who Really Loses from Failure?
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G-20 Member Countries
Argentina, Bolivia, Brazil, Chile, China,
Cuba, Egypt, Guatemala, India, Indonesia,
Mexico, Nigeria, Pakistan, Paraguay, Philippines,
S. Africa, Tanzania, Thailand, Uruguay, Venezuela,
Zimbabwe
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General Tariff Reduction Formulas
Proposed Developed Country Tariff Cuts, Bound Rates
Issue U.S. EU G-20 Formula Progressive Linear Linear
4 Tiers Cuts 4 Tiers Cuts 4 Tiers Cuts 0 - 20 55% - 65% 0 - 30 35% 0 - 20 45%
Tariff Reduction
20 - 40 65% - 75% 30 - 60 45% 20 - 50 55% 40 - 60 75% - 85% 60 - 90 50% 50 - 75 65%
60+ 85% - 90% 90+ 60% 75+ 75% Cap: 75 Cap: 100 Cap: 100
Avg. cut of 54%
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General Tariff Reduction Formulas Proposed Developing Country Tariff Cuts, Bound Rates
Issue U.S. EU G-20 Formula Progressive Linear Linear
4 Tiers Cuts 4 Tiers Cuts 4 Tiers Cuts 0 - 20 <55% - 65% 0 - 30 25% 0 - 30 25%
Tariff Reduction
Flex 10% - 40%
20 - 40 <65% - 75% 30 - 80 30% 30 - 80 30% 40 - 60 <75% - 85% 80 - 130 35% 80 - 130 35%
60+ <85% - 90% 130+ 40% 130+ 40% Cap: Yes Cap: 150 Cap: 150
Max. Avg. cut of 36%; <2/3rd proportionality