Issues Responsible for Failure of Doha Talks and Possible Solutions.

Title Issues responsible for failure of capital of Qatar dialogue and possible solutions. remark Course Sunderland ID EThames Students ID In discern Introduction Current Doha round has been star of the most eventful round but its irony that fractions couldnt reach to condenses. This investigate paper concentrates on reasons that caused friction among the nations and possible solutions that suffer be used to resolve these issues or reasons. Agricultural issues and industrial goods market issues, duologue has been hang up with egress every further notice of next round.At the completion exclusively the hard work after years of dialogue wasnt boffo ad differences among the fighting(a) nations proved insurmountable. dada Lamy, the Director General of the WTO, tried re entirelyy hard for the success of these dialogue but all the positionings didnt show the flexibility that was demand for the success of these talks. Failure of Doha round talks also highlight the lack of g lobular leadership at least in just about quarters, and this fact is pretty difficult to perceive and there be various reasons for that.Only bright niceg emerged from this summit is the talk scarce need one final examination push as finishing line is insight. Lot has been already achieved but critical issues need consensus. Success to these talks can lick much ask global stimulus for global economy of hundreds of jillions of dollars annually. Both developed and developing countries can gain something out of it, in fact it is a great probability for developed nations to address complaints of developing nations where they feel that economic linearization is highly tilted in favor of developed nations.But failure of these talks can bring some serious consequences it entrust seriously damage the reputation of WTO and more importantly multilateralism for which everyone is working hard for allow be damaged permanently. Most of the representatives were distressed about what co uld be perceived from their stance i. e. compromising on their stance might appear as compromising on national amuseingness. (Deardorff, 2008) Reasons for failure of Doha round Failure of Doha round talks have put temporary pause on further negotiations, this is not the first time that talks has been failed and further handleion has been suspended.This has happened before also ministerial talks in Seattle in 1997 and in Cancun in 2003 also have met the dead end though there were different reasons and different out come for each of the failure. Exception in case of Doha round is for the first time talks has been suspended officially. Official announcement of suspension of talks came after 14 hour long last conflux for overcoming farm subsidies and tariff drop of G6 members yielded no result. Members of G6 assemblageing came together to come to consensus on support for domestic farms, artless market access and non country market access were the core points of the sermon.Agric ultural issues and Outcome of G6 meeting Pascal Lamy, the Director General of the WTO called this meeting as a last attempt for consensus. This meeting had ministers from India, Japan, Australia, brazil, unites states and 25 members from European Union. Main aim of this meeting was to abbreviate or remove hurdles in the way of free great deal in the agricultural area and goods manufacturing. thither were umpteen other factors that were needed to be addressed but entire give-and- stick revolved round these issues.Each side remained firm on it stance and more emphasis was put on precondition before further negations. (Bhagwati & Sutherland, 2011) It was necessary for all the act nations to meet the deadlines and to achieve that it was necessary to agree on figures and formulae for the tariff truncated and aid cut in context of industrial goods and agriculture modalities but talk couldnt move forward in positive direction because irreconcilable differences between active min isters representing their nations.Failure in the talks was more unfortunate on the background of fresh hopes which were raised in G8 meeting of worlds most powerful and industry oriented nations. Then chairperson of join States and European commission president assured flexibility. Even heads of developing countries like India and Brazil participating in G8 meeting showed their interest in pushing for the breakthrough. (Bhagwati & Sutherland, 2011) G6 minister headed for Geneva after St. Petersburg meeting where they were prepared to transform their promises of flexibility into concrete deals.Pascal Lamy, the Director General of the WTO convinced these nations to discuss these issues. Lamy was pushing for regular army to reduce domestic farm support and European Union for change magnitude access for domestic agricultural market and at the aforementioned(prenominal) time developing nations like India and Brazil will be convince for reducing their industrial tariffs. Problem here was each group was expecting other group to give in first. In these triangle of issues main hurdle in the talks were issues in agricultural sector which has been mentioned above.The third issue of convincing of India and Brazil for reducing their industrial tariffs didnt even make it to the discussion because there wasnt any result from the discussion of first two issues. In the negotiations USA and European Union were expected to cut the subsidy they were providing to domestic farms at the same time developed nations were expecting India and Brazil, to open their domestic market for agriculture and agricultural goods. Negotiations had the first jolt when far from removing subsidy to agricultural sector USA proposed to increase it.With this development Lamy realized that there wont be any consensus and quip was widening and thus before situation deteriorates any further he suspended the talks. He didnt give any indications when next round of negotiation will begin he hinted that instead of deadlocking on same issues again participating countries should carry out their respective work internally regarding these issues and then go in in the discussion. (Chimni, Chantal, Thomas & Trachtman, 2009) Major reasons From above information it is pretty clear that agricultural issues are the main reason for breaking down of talk.Members had heated discussion on this issue and USA offered to cut farm subsidies which proved trade distorting by 53% that is USA proposed to slash the subsidy amount from $48. 2 billion to $22. 5 billion but issue here was this amount of $22. 5 billion was much higher than their last year subsidy, which was $19. 7 billion thus by proposing slash of 53% they were indirectly trying to increase the subsidy on their agricultural sector where all the nations were gathered together to discuss subsidy cut on the agricultural sector by developed nations.This offer from United States didnt satisfy any of the G6 members as well as any of the diplomat ic delegations from other nations. (Bhagwati & Sutherland, 2011) To add to it in the exchange United States expected tariff cut from European nations up to 66% where European Union offered 51% increasing from original proposed position of 39% this offer of 51% was quite close to demand of developing nations where they expected tariff cut from European nations up to 51%. But on the contrary USA stated that European nations only were willing for 48% of tariff cut and they were expecting at least of 54%.Both India and Brazil appreciated this movement from European Nations their representatives also suggested that it was approach from united status which blocked the progress of talk and that resulted in suspension of the talks. different reasons behind failure of talks Some issues other than agricultural issues also played their part in the failure of the talks in Doha round. The presidents administration in USA was under severe pressure from congress and it had to give in because of p ressure of protecting domestic interests. Delegates from Special interest groups such as National Association of Manufacturers and American FarmBureau from United States were present at the summit they monitored as well as instructed representatives of United States. Pressure applied by these groups reduced space of negotiation for United States delegation. There was deep rooted North South tension it combined with many other adverse factors to undermine success of the talks. (Chimni, Chantal, Thomas & Trachtman, 2009) Many scholars and commentator stated that up-to-date situation in major negotiating parties like United States, India and European Union wasnt quite in the favor of trade concessions political leadership everywhere was not willing to concede much.Key elections were due in United Status and it was expected that administration wont go for any risky compromise on their position which might appear as compromise on national interest. To add fuel to the fire economic cris is emerged from Wall Street had huge repercussions and it got converted in global slow down. (Deardorff, 2008) There were oppositions for European Union offer of 51% tariff cut from European nations from European Union according to French president Nicolas Sarcozy 51% tariff cut would result in destruction of European agriculture and would reduce more than 100000 jobs.Absence of fast track authority (trade promotion authority) also didnt go to well with other delegations. Without passing of trade promotion authority it wouldnt have been possible to get passing of congress even if participating nations would have managed to reach some kind of consensus. After do of talk failure India, Brazil, Japan, Australia, USA and European were involved in 14 hours long meeting to make consensus but unfortunately the meeting ended without any results on lowering tariff and slashing farm subsidies.This failure in talks gave give birth to inhibited blame game in the participating countries. EU p eck Commissioner Peter Mandelson said that What theyre saying is that for every dollar that they strip out of their trade-distorting farm subsidies, they want to be given a dollars worth of market access in developing country markets. That is not delicious to developing countries and its a principle that I, on Europes behalf, certainly couldnt sign up to either. This is not my definition of leadership In reply to this statement from EU pot Commissioner, Susan Schwab from USTR alleged that statement by the EU alleging that the US failed to show flexibility and attempting to divert the blame for the stalemate is treacherously and misleading. The countries that have tended to be finger-pointing at this point are the ones that are reluctant to act in terms of market access. We are deeply discomfited that the EU failed to exhibit similar restraint and hope this will not jeopardize the few chances we have left to save the Doha round. EU and US kept pointing fingers at each other afte r suspension of Doha round each party blaming other party for failure of Doha round.As usual India also blamed developed nations for not removing subsidies those were proved a trade distorting. Indias industry and commerce minister Kamal Nath said that It is best we give notice (of) the world that the talks have failed, and the negotiating process is suspended. Now, there is no roadmap for the future, according to him United States approach of refusing to cut subsidy regarding agricultural sector has been solely responsible for failure of talks at Doha summit. European Union also openly blamed Unites status for suspension of negotiation.EU Trade Commissioner Peter Mandelson stated that it was disappointing to see lack of flexibility in USAs approach after promising the same in G8 summit. To take the blame game further US officials blamed other trading partners for failure of process to bridge the differences on other important issues such as import duties on tariff related to agric ultural sector. US officials further alleged that they were prepared to remove subsidies related to agricultural sector those were proved a trade distorting but they could not do so because India and European Union did not present any substantial proposal on global agricultural market access.Pascal Lamy, the Director General of the WTO preferred to stay away from the blame game he was more intended on how to resume talks. Lamy urged all the participating nations to avoid megaphone diplomacy and do some introspection in order to avoid such situation in the future. Lamy also requested all participating nations to think positively to arrive at any acceptable solution. Chances of resolving the differences Doha round has been disappointing and talks has been moved to deep freeze state since then.There is very elflike positivity around these talks very few people are still in belief of revival, though Brazil and United States have promised to work hard in positive direction for revival f the talks chances are looking really thin about it. Most experts believed that there are little hopes for revival of talks ahead of Doha round. Breakdown at that juncture meant that there is very little hope for revival of talk before end of presidency tenure of then president of United States.As mentioned above, fast track authority or trade promotion authority thinks that congress must show green or red signal otherwise opponent might take profit of such situation. Political climate in United States during that time was not very conducive for any compromise because of mid term elections current trade deficit in US economy also played negative role extension of fast track authority and even if it would have happened, in case of opposition win in the election would lead to weakening of fast track authority. Hoekman, 2003) It is believed that France who is strongly opposing for 51% tariff cut in agricultural sector has forced Lamy to suspend the talks indefinitely. In fact many sa y that France make it sure that talks get suspended that if discussion is highly concentrated on agricultural issues. Wall street journal quotes French agricultural minister saying that I would prefer the negotiations fail kind of than raise questions about agriculture. Because of this situation promises by USA and Brazil of reviving talks appear unrealistic. Successful round and preconditionsPolitical capitals should be mobilized in order to have any hope for success in breaking the deadlock this has to be done domestically as well as internationally. This will require monumental leadership globally. With new president United State certainly has position to do this. Morally also United State has to take responsibleness because they are the most influential and powerful nation in the world to add to it they are responsible for current economic crisis. Other major trading nations like Canada, Japan and European nations also should join United States in these initiatives of bold eco nomic reforms and liberalization.Meaning of economic liberalization itself is to save macrocosm money and removing of wasteful economic programs. It is true that current financial status of United Status might complicate things for that country still United States can afford to act little proactively. Road ahead There is growing concern about global economic recession and its after effects and because of mounting fear world leaders are requesting businesses to consult their respective governments, to think successful solution regarding failure of talks in Doha because if that doesnt happen there is constant risk of developing other barriers in world trade.Peter Mandelson feels that it better to act quickly and it consensus are not reached immediately, chances are pretty slim that it will be done in future. Trade talks were working on stop start basis from last half-dozen years but after Doha talks are on halt. A constructive seminar was held at Davos where subject was Threats to t he Global Trading System some progress was registered on some technical issues in this summit but no party still is close enough for any sort of noble agreement because of high degree of skepticism.Developing countries are concerned about interests of their farmers they feel that lowering the tariff might expose farmers especially poor farmers to global competition for which they might not be prepared for, and this situation will have its adverse effects on growth and will result in slowdown of entire economy. Minister of Commerce and Industry of India Kamal Nath insisted that India, Africa and Asia pacific are the most productive markets for developed nations and if they want to take advantage of these markets it has to be made sure that India, Africa and Asia pacific have healthy economy. Deardorff, 2008) At the same time financial scholars feel that cost of failure of Doha talks is already winning its toll on participating nations and if solution is not obtained in near future most of the countries might opt for protectionism and this will be bad tidings for free trade as it will be the roll back what ever progress that has bee made in the direction of free global trade.Pascal Lamy, the Director General of the WTO has mentioned his concern may time according to him effects of global economic slow down might be having their exaggerated side effects on global economy due to Doha failure. Minister of foreign affairs in Brazil Celso Amorim is also worried about current situation he feels that though all the negotiating parties are adamant on their position they all have to face the consequences in near future for their stance. (Das, 2009) Because of increasing delay companies are loosing their faith in negotiators and voters though they have lot more o gain from what ever negotiations carried out at Doha though lot more still left to be achieved and because of this companies and powerful and influential corporate houses all over the world should consider the fact that stalling of talks will result in loss of opportunities for them thus as mentioned above they should use their might to convince their respective government and if they succeed to do so, it will be a terrific achievement. Conclusion The longest trade round ever was held in Doha. It could have been termed as constitutional moment for trading systems crosswise the world.Structure of trade between the member nations is largely dependent on future of Doha talks how it ends and what shape does it take. Having said this, this round will comprise without any positive response or developmental challenges. For Doha to succeed and for better future for WTO in the context of its credibility it is important that focus of the talks shifts from mere commercial bargain that is controlled by major negotiating parties to a process of public interests whos success will be beneficial for all.Commercial bargains of the member nations of WTO have been primarily responsible for jeopardizing of the talks. Although some members think for alternative way for controversial points they wont be as productive as successful Doha round nor do they will be able to survey larger public good. For dispassionate involvement in the negotiations highlights lack of leadership from USA. It is responsibility of trading partners of United States be its developing or developed nation to prevent that nation from becoming a stumbling block in the talks.At the end of the day it must be remembered that world in which every one has enough food to eat and good enough work to do only such world can derive peace and security for global citizens which can be provided by successful trade. References Deardorff, A. , 2008 International Provision of Trade Services, Trade and Fragmentation. Review of International Economics, Vol 9 No. 2. pp. 233-48. The Economist, 2003 The WTO Under Fire. September 18 Available on the Internet at http//www. economist. com. /PrinterFriendly. cfm? Story_ID=2071855 Hoekman , B. 2003. Cancun Crisis or Catharsis. Paper presented at the joint roundtable of the Brookings Institution and George Washington University held on 20 September, in Washington DC. Pr Jagdish Bhagwati and Peter Sutherland KCMG, (January 2011) THE DOHA ROUND SETTING A DEADLINE, delimitate A FINAL DEAL Interim report B. S. Chimni, Chantal Thomas & Joel P. Trachtman eds. , (2009 ) Some Reflections on the Idea of Free Trade and Doha Round Trade Negotiations, in DEVELOPING COUNTRIES IN THE WTO LEGAL SYSTEM 21, at 2728 A key year ahead for Doha trade talks, available at http//www. weforum. rg/node/65945 Accessed on 9-7-11 DAS, supra note 151, at 105. There is also a collective benefit from trade liberalization developing countries should open their markets among one another to fully achieve export-market diversification. Id. at 106. Dilip K. Das. 2009a. ,Financial Globalization and the Emerging Market Economies. Routledge, London and New York. 2009. Lamy, P. , 2003 Can the Doha Develop ment Agenda Live up to its Name? Available on the Internet at http//europa. eu. int/comm/commissioners/lamy/speeches_articles/spla188_en. htm September 10, 2008