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Why initiatives towards LDCs should be consolidated in the DDA

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  • Fontagné, Lionel
  • Laborde, David
  • Mitaritonna, Maria Cristinna

Abstract

On July 24, 2006, World Trade Organisation (WTO) Director­General Pascal Lamy recommended a “time­out” and the indefinite suspension of the WTO Doha Development Agenda (DDA) negotiations. At this time, the G­6 group (Australia, Brazil, India, EU, Japan and USA) was still not able to bridge their gaps on agricultural domestic support and market access, the main stumbling blocks of the Doha Round for several months. This grand bargaining has to some extent shed shadow on the supposed key issue of the current Round, namely its “development” dimension. To shed light on development dimension of the round, we assess the impact of the “20/20/20 Lamy’s compromise”, considering also the pro­Least Developed Countries (LDCs) initiatives advanced during the negotiations. Since market access is still at the heart of the negotiation process, we focus only on reduction of trade barriers for goods, keeping in mind that other issues, such as services, will bring additional gains. Also, trade facilitation as well as a potential “Aid For Trade” package would smooth adjustments for developing economies, making it possible for the poorest to reap the benefits of trade liberalisation (Decreux and Fontagné, 2006). An assessment of the gains that could be obtained from such a compromise will show that consolidating free access initiatives is key and that emerging economies would help in embarking in the scheme. To assess the impact of these , the paper introduces all these trade liberalisation components in MIRAGE, the CGE developed by the CEPII (Decreux et Valin,2007), with a dynamic path up to 2020.

Suggested Citation

  • Fontagné, Lionel & Laborde, David & Mitaritonna, Maria Cristinna, 2007. "Why initiatives towards LDCs should be consolidated in the DDA," Conference papers 331638, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:331638
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