The second main negotiations was on Trade and Environment, this topic is on how the members of the WTO should comply with the environmental regulations which have been set by other bodies, it is also about the ways products are made to make the processes more “eco-friendly”. The ministers at the Doha round of trade negotiations “agreed to launch negotiations on the relationship between existing WTO rules and specific trade obligations set out in multilateral environmental agreements.” The members discussed the ways in which out of 200 environmental agreements only 20 have trade provisions and how these maybe increased, the reason for this that the WTO is a body which helps to cover all aspects of trade, and as environmental issues are at the forefront of topical debate around the world, the WTO are encouraging their members to improve their production and distribution methods as much as possible while still being price competitive. An example of these discussions and implementations would be “the Montreal Protocol for the protection of the ozone layer applies restrictions on the production, consumption and the export of aerosols containing chlorofluorocarbons (CFC’s).”
Also, the members discussed in the Doha round the environmental labelling requirements and whether the rules which were set by the WTO are in violation of eco-labelling policies, this matter is going to be discussed in the near future between the WTO and the “Barriers of trade committee” (TBT), to see ways in which this matter can be solved.
The discussions which were made on trade and environment are important for both the company’s and countries involved, but also to society itself, the reason for this is that the regulations which have made in these negotiations should help reduce pollution examples of this were (as stated above) CFC’s which creates holes in the ozone layer which will effect everyone, and so it could be seen that these discussions would benefit the whole of society.
The relationship between trade and investment was also discussed in the Doha round of discussions, though these will start after the 5th session of ministerial conference, the reason for this is that the WTO want to wait for the session on modalities of negotiations as this will tell how the negotiations ought to be conducted.
“In the period up to the 2003 Ministerial Conference, the declaration instructs the working group to focus on clarifying the scope and definition of the issues, transparency, non-discrimination, ways of preparing negotiated commitments, development provisions, exceptions and balance-of-payments, consultation and dispute settlement. The negotiated commitments are being made – “positive lists” – rather than making broad commitments and listing exceptions.”
The declaration also explains the standards which the countries involved should keep to. The reason for this is that there is a need to “balance the interests of countries where foreign investment originates and where it is invested, the countries right to regulate investment, development, public interest and individual countries specific circumstances. It also emphasizes support and technical co-ordination with other international organisations e.g. UN Conference on Trade and Development (UNCTAD).”
This negotiation by the World trade organisation is quite important, has it helps keep the balance on how trade can be conducted and also give the countries powers if they disagree with the way they are being treated by others countries. This declaration will benefit all countries, but especially developing countries as before this was enforced, major powers such America would gain the most out of trading products like raw materials, and would pay a considerable amount less then if they were buying from a more developed country. It gives these countries more say in the practices which go on, and can regulate them on how trading will be at the peak benefit to them without being too controlled by the other country/countries.
The fourth main topic which arose within the Doha round was market access to non-agricultural products, this was where “Ministers agreed to launch tariff-cutting negotiations on all non-agricultural products so to “reduce, or as appropriate eliminate tariffs, including the reduction/ elimination of tariff peaks, and tariff escalation, as well as non-tariff barriers, in particular on products of export interest to developing countries.”
What this means is that as countries have a much harder task of having tariffs on imports the less developed countries will be able to receive more revenue as they receive more capital then if tariffs were used. This idea would also cause better competition within the market, making them price competitive which would benefit the consumer. Also, as non-tariff barriers are to be reduced/ eliminated this will mean that these less developed countries, as they will be able to receive better technology and equipment which would increase productivity and efficiency, helping the country become more developed.
This negotiation is of great importance, especially to less developed countries as it will mean more revenue for the country and also the companies operating within the market, it will also benefit the consumers of which countries are members as products will be reduced in price and also the range of products will increase.
The final main topic which was discussed was regional trade agreements, according to the WTO all countries have to meet certain conditions, yet it is still unclear whether these conform to the provisions set by the Regional trade committee. In the Doha round they agreed to come to a solution as these agreements will be able to help less developed countries gain substantial growth in time, this is stated in the declaration where it says “the negotiations are aimed to clarify and improve disciplines and procedures under the existing WTO provisions which apply to regional trade agreements.”
The objectives of this agreement are to provide a duty free market for developing countries and to improve market exports to these countries; overall these regional trade negotiations could benefit all involved as it will improve regional trade agreements creating more choice for the consumer and also more stability and control for the less developed countries which can help create the foundations for the country to improve on, therefore this should in-turn benefit all involved.
In conclusion the main issues which were discussed in the WTO’s round of trade negotiations were agriculture, trade and environment, the relationship between trade and investment, regional trade agreements, and market access for non-agricultural products. These negotiations were very important for many groups depending on the agreements made, but overall they were important for all countries especially those countries which were less developed or were still a developing country, and also in some cases a benefit to all of society e.g. the banning of CFC’S.
BIBILOGRAPHY
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P237-238, “international economics”, Robert M.Dunn, John H.Mutti, 5th edition, published by Routledge
- P1-2, Guide to the WTO +developing countries, Peter Gallagher, Published by Kluwer law international
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World trade organisation website: also: http://www.wto.org/english/tratop_e/dda_e/dohaexplained_e.htm