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Developing Countries at Doha: A Political Economy Analysis

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  • Arvind Panagariya

    (University of Maryland)

Abstract

This paper offers a political economy analysis of the Doha Ministerial Conference with special reference to developing countries. One of my key objectives is to understand the politics underlying the negotiations with a view to assessing the influence developing countries exerted on the outcome and the success they achieved in relation to the Uruguay Round Agreement, which is widely perceived as favouring mainly if not exclusively the developed countries. The main conclusions of the paper may be summarised as follows. First, with trade liberalisation as its central focus, the Doha negotiating agenda is to be welcomed from the viewpoint of developing countries. Second, the opposition by developing countries to the inclusion of at least some of the Singapore issues at Doha is defensible. Among other things, the countries lack the necessary negotiating and implementation capacity. Third, while the UR Agreement benefited both developing and developed countries, on balance, it benefited the latter more. The Doha outcome offers a better balance when taken by itself but does not go so far as to significantly correct the imbalance in the UR Agreement. Fourth, despite this better balance, the Doha negotiations offer little evidence of a shift in the relative bargaining powers of developing and developed countries. Nor can the superficially development friendly language of the Doha Declaration be viewed as signalling the softening of the tough negotiating stance developed countries took during the UR Round. Fifth, much of the negotiating power continues to reside with developed countries. Relatively equal levels of incomes gives greater coherence to interests of developed countries on issues that divide along North-South lines. Moreover, the presence of three large players - the USA, EU and Japan - allows them to exploit their bargaining power more effectively. Finally, to negotiate more effectively in the future, developing countries must improve their research capacity, th
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Suggested Citation

  • Arvind Panagariya, 2003. "Developing Countries at Doha: A Political Economy Analysis," International Trade 0308015, EconWPA.
  • Handle: RePEc:wpa:wuwpit:0308015
    Note: Type of Document - Tex/WordPerfect/Handwritten; prepared on IBM PC - PC-TEX/UNIX Sparc TeX; to print on HP/PostScript/Franciscan monk; figures: included/request from author/draw your own
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    References listed on IDEAS

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    1. J. Michael Finger & Julio J. Nogués, 2002. "The Unbalanced Uruguay Round Outcome: The New Areas in Future WTO Negotiations," The World Economy, Wiley Blackwell, vol. 25(3), pages 321-340, March.
    2. Kenneth A. Reinert, 2000. "Give Us Virtue, But Not Yet: Safegaurd Actions Under the Agreement on Textiles and Clothing," The World Economy, Wiley Blackwell, vol. 23(1), pages 25-55, January.
    3. Ingco, Merlinda D., 1995. "Agricultural trade liberalization in the Uruguay Round : one step forward, one step back?," Policy Research Working Paper Series 1500, The World Bank.
    4. Finger, J. Michael & Schuknecht, Ludger, 1999. "Market access advances and retreats : the Uruguay Round and beyond," Policy Research Working Paper Series 2232, The World Bank.
    5. Arvind Panagariya, 2003. "India at Doha:Retrospect and Prospect," International Trade 0308016, EconWPA.
    6. Martin, W. & Winters, L.A., 1995. "The Uruguay Round and the Developing Countries," World Bank - Discussion Papers 307, World Bank.
    7. Arvind PANAGARIYA, 2000. "The Millennium Round And Developing Countries: Negotiating Strategies And Areas Of Benefits," G-24 Discussion Papers 1, United Nations Conference on Trade and Development.
    8. Finger, Michael J. & Schuler, Philip, 1999. "Implementation of Ururguay Round commitments : the development challenge," Policy Research Working Paper Series 2215, The World Bank.
    9. Arvind Panagariya, 2003. "TRIPS and the WTO An Uneasy Marriage," International Trade 0309002, EconWPA.
    10. Finger, J Michael, 1981. "Policy Research," Journal of Political Economy, University of Chicago Press, vol. 89(6), pages 1270-1271, December.
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    Cited by:

    1. Ravinder Rena, 2008. "WTO and Agricultural Trade – Some Issues and Perspectives," KASBIT Business Journals, Khadim Ali Shah Bukhari Institute of Technology (KASBIT), vol. 1, pages 49-60, December.
    2. Arvind Panagariya, 2003. "Aid through Trade: An effective option," International Trade 0308011, EconWPA.
    3. Moon, Wanki, 2011. "Is agriculture compatible with free trade?," Ecological Economics, Elsevier, vol. 71(C), pages 13-24.
    4. Ozden, Caglar & Reinhardt, Eric, 2005. "The perversity of preferences: GSP and developing country trade policies, 1976-2000," Journal of Development Economics, Elsevier, vol. 78(1), pages 1-21, October.
    5. Mehdi Abbas, 2008. "Les rapports Nord-Sud à l'OMC. Entre différenciation et espace politique pour le développement," Post-Print halshs-00217467, HAL.
    6. Mehdi Abbas, 2011. "Mondialisation et développement. Quelle soutenabilité au régime de l'organisation mondiale du commerce ?," Post-Print halshs-00602996, HAL.
    7. Rena, Ravinder, 2005. "Developing Countries And Their Participation In The Wto In Making Trade Policy – An Analysis," MPRA Paper 10367, University Library of Munich, Germany, revised Apr 2006.
    8. Christian Bjørnskov & Kim Martin Lind, 2005. "Underlying Policies in the wto, the Harbinson Proposal and the Modalities Agreement," Revue économique, Presses de Sciences-Po, vol. 56(6), pages 1385-1412.
    9. Khorana, Sangeeta, 2008. "The Developmental Relevance of Tariff Rate Quotas as a Market Access Instrument: An Analysis of Swiss Agricultural Imports," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 9(2).

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    JEL classification:

    • F1 - International Economics - - Trade
    • F2 - International Economics - - International Factor Movements and International Business

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