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The political Economy of WTO with special reference to NAMA Negotiations

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  • Shafaeddin, Mehdi

Abstract

The dissatisfaction of developing countries with the new Trade Round surfaced first in the WTO meeting in Seattle in autumn 1999. The Round was finally launched in Doha in 2001. Nevertheless, since the, the negotiations has faced with difficulties and deadlocks. The author argues that such difficulties are rooted in the economic philosophy behind the design of GATT/WTO rules and in their implementation by developed countries. The interrelated issues of conflict of ideology/interests and imbalances in the power relationship between developing and developed countries are the main cause of the inherent bias in the world trading system against developing countries. Such bias prevailed right from the time of the inception of the Breton Woods System as an alternative to the Keynes’s proposal and the Havana charter. The combination of these factors has been reflected in a number of contradictions, double standards and asymmetries not only in GATT/WTO rules in favour of developed countries and their large corporations. It has also influenced the negotiation of developed countries with developing countries during the so-called “Doha Development Round” The author refers to the particular example of negotiation on NAMA, in some details, to highlight inconsistencies between the objectives/spirit of the agreed text of the Doha Round and subsequent proposals made by developed countries. If these proposals were to be agreed upon they would limit policy space of developing countries necessary for their industrialization. It may, in fact, lock many of them in production and exports of primary commodities and at best, resource-based and assembly operations. He further argues that unless these asymmetries are addressed, there will be a great risk of the collapse of the international trading system with its adverse socio-political consequences for the international community. Drawing on the experience of successful early and late industrializers and the failure of recent across-the-board and universal trade liberalization, he proposes the necessary changes in WTO rules commensurate with industrialization and development.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 10894.

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Date of creation: Sep 2008
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Handle: RePEc:pra:mprapa:10894

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Keywords: WTO; political economy; Non-agricultural market access; trade; trade policy; developing countries; industrial policy; trade negotiations;

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  1. Susanna Kinnman & Magnus Lodefalk, 2007. "What is at Stake in the Doha Round?," The World Economy, Wiley Blackwell, Wiley Blackwell, vol. 30(8), pages 1305-1325, 08.
  2. Paul A. Samuelson, 2004. "Where Ricardo and Mill Rebut and Confirm Arguments of Mainstream Economists Supporting Globalization," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 18(3), pages 135-146, Summer.
  3. Shafaeddin, Mehdi, 2006. "Is The Industrial Policy Relevant In The 21st Century?," MPRA Paper 6643, University Library of Munich, Germany.
  4. Antoine Bou�t & Simon Mevel & David Orden, 2007. "More or Less Ambition in the Doha Round: Winners and Losers from Trade Liberalisation with a Development Perspective," The World Economy, Wiley Blackwell, Wiley Blackwell, vol. 30(8), pages 1253-1280, 08.
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Cited by:
  1. Aliyev, Khatai, 2014. "Expected Macroeconomic Impacts of the Accession to WTO on Azerbaijan Economy: Empirical Analysis," MPRA Paper 55096, University Library of Munich, Germany.
  2. Shafaeddin, Mehdi, 2009. "Impact of Selectivity and Neutrality of trade Policy Incentives on Industrialization of Developing Countries; Implications for NAMA Negotiations," MPRA Paper 15037, University Library of Munich, Germany.

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