Concluding The Doha Round: An Imperative

Much water has flowed under the bridge since ministers failed to conclude world trade negotiations in July 2009. The world underwent an historical recession brought about by the U.S. financial toxic asset scandal. Global trade has declined sharply and is forecasted to decline by 9% in real terms in 2009. World economic growth rates have declined dramatically. There have been several cases of covert (and some overt) protectionism by both developed and advanced economies. Despite declarations from world leaders on several occasions for the need to refrain from protectionist measures and the need for the resumption and conclusion of the Doha Round of trade negotiations over the past nine months, no such action has materialized. The two major contestants in the July 2008 ministerial meetings have concluded their elections and politics have been the significant factor in the failure to conclude the Round. Though the one has grown in strength to afford it greater flexibility in its negotiating position, the U.S. has reportedly considered some new issues and changes to its earlier positions. Fortunately other influential players seem to remain committed to trade liberalization and a successful conclusion of the Doha Development Agenda. This article is a follow up to my commentary on these trade negotiations in Volume 2 of the Commodity Vision, Oct-Dec 2008.1 From the Indian perspective the emphasis is on still the Agriculture Package though Services and Non Agriculture Market Access (NAMA) are critical to India’s success in world trade.