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Introduction: Globalisation as a phenomenon has occurred due to the increasing internationalization of the corporate mindset.

Companies all over the world want to expand and have access to a wider market Different countries of the world are trading with each other and it is imperative that the trading needs of the developing countries are now taken into consideration while introducing and formulating trade negotiation policies. Keeping this in mind The General Agreement on Tariffs and Trade (GATT) and then later World Trade Organization (WTO) was conceived and these strived hard to solve the serious issues and matters of unfavourable balance of trade being faced by the underdeveloped countries. However, unfortunately none of these could do much or bring any significant increase in their export earnings. The General Agreement on Tariffs and Trade (GATT) worked around resolving this issue by bringing down the custom duties but failed miserably otherwise as it was presumably one-sided and slanted towards the affluent nations and also lead to an even greater inequality between the haves and have nots. As a result World Trade Organization (WTO) was set up and backed by 104 countries, it hoped to forge a trade centric agreement on agriculture, manufactured goods, trade related investment measures, trade related intellectual property rights, services and a mutually agreeable body that would help settle the disputes. It unfortunately couldnt deliver as it promised and failed to meet up to the expectations it had set up amongst its member countries. The World Trade Organization (WTO) couldnt do much to create trade across the world and yield much export income for the underdeveloped countries. Due to the developed countries not agreeing on many of the trade negotiations and reforms, the underdeveloped countries continued to face obstructions and difficulties while trying to export services, goods and commodities. It was very important and critical for the developed countries to give up their protectionist measures so that the global economy could get a boost. An urgent need to find a mutually agreeable and beneficial solution to boost global trade in agricultural commodities, services, non- agricultural commodities and few other aspects was felt all over the economically devastated world and this gave birth to the talks to be held in Doha, Qatar. Doha or the development round as most leaders of the world called it was nicknamed such as it was intended to promote economic development by introducing free trade. The global trading community hoped to do away with the stifling trade barriers in both the industrialized and the developing countries. http://www.foreignaffairs.com/articles/61218/william-r-cline/doha-and-development accessed on This trade negotiation began in the year 2001 November in Doha, hence giving it the name Doha round. These talks concentrated on the following aspects:

Regenerating and rectifying the grants on agriculture Making the global markets more approachable Making sure that the newly introduced liberalisation in the world economy regards the fact that the developing economies require sustainable economic growth

http://ec.europa.eu/trade/creating-opportunities/eu-and-wto/doha/ accessed on 07/07/2011 Doha round intended to substantiate the role of World trade organisation (WTO) as a buckler against the protectionist policies of the developed nations. Its primary concern was to look into the welfare of the developing countries and make sure that their trading requirements are well looked after. Almost seventy five percent of the world trade organizations membership constitutes of the developing nations and that is why the prime concern of this round was to make sure that the multilateral trading system proves beneficial to these developing countries. Many important key approaches were drafted at the Doha round, so that the developing countries could grab a participatory position in the global trade in keeping with their economic condition. It intended to achieve this by lowering the tariffs on imports so that the northern markets become increasingly accessible to the developing nations. The lowering of the tariff on imports could greatly prevent an unreasonable increase in prices. It also hoped to gradually terminate any subsidies in both the domestic and the export trading arenas. Terminating these subsidies would prevent the excessive production of goods at unreasonably low prices. Most often the goods produced at such immoderately low prices are dumped and then threaten the local markets as these tend to become cheaper than the products produced locally. During the Doha talks the European Union (EU) in its endeavour to create new trading opportunities between developed and developing countries wanted to slash tariffs on industrial products. Besides cutting the tariffs, the European Union (EU) also hoped to remove hindrances in trade by, simplifying the complex and ambiguous regulative system and also by finding hopeful methods of terminating dual pricing practices. Apart from making advancements in the industrial goods sector European Union (EU), also hoped for major improvements in the agricultural sector so that the market accessibility of its processed agricultural goods could be enhanced. Agriculture related issues were of a prime concern and negotiations at the Doha round were to be centred round creating a just and a market focussed system of trade through a well defined program aimed at rectifying the limitations and distortions in the global agricultural markets. The issues of concern were the subsidies on export, enhancing market accessibility especially for developing countries and reducing all the support that the domestic governments give to their farmers, as all this eventually hampers the trade. Issues like the development of rural areas, protection of environment, food security were also to be negotiated on. Besides agricultural issues the ministers also negotiated on reducing tariffs, removing tariff peaks and non tariff obstructions on non agricultural goods that were on the export list of the developing countries. The exporting interests of the developing and the LDC (least developed countries) were to be prioritised upon. The services sector forms an integral part of the global economy and this was thus an important issue at the Doha round apart from agriculture and many others. Besides supporting the previously achieved goals by GATT the ministers at the Doha round were keen on liberalising trade in services and were certain that this would provide the much needed boost to the crest fallen economy of the world. The Singapore issues were amongst the other important issues included in the Doha round. Working groups were set up to negotiate issues that would arise due to across the border trade within the same organisation, issues concerning trade and competitiveness, matters related to transparency in government procurement issues and facilitation of trade by simplifying the procedures related to trade. A

productive environment is mandatory for enhancement of trade and the environment should be safeguarded while conducting trade. It is very important that the environment is protected while conducting trade and it shouldnt be compromised on as global warming is a major threat as well. Ministers at the Doha round-oftalks agreed to negotiate on issues that were providing a boost to environmentally friendly trade. It was also agreed upon to negotiate on information exchange procedures between the WTO, and the administrative bodies of the multilateral environment pacts. In order to protect the environment and boost the trade of environmentally friendly products, it was proposed to lessen and slowly eliminate the tariff and the non-tariff hurdles in the way of products and services that were eco friendly. The ministers at the Doha round agreed also to negotiate on the issues plaguing the countries that suffer due to insufficient resources , lack of economies of scale, and the inability to pay off their debts. Negotiations on the issue of the transfer of expertise between advanced and advancing nations were also the part of Doha round. One of the most disputatious issues of the Doha round was that of the intellectual property rights. It was proposed to make it mandatory for the developing countries to implement intellectual property rights. Doha was conceived to handle various issues ranging from agriculture, trade barriers, textiles, subsidies, investments related to trade and rules of origin etc and also the issues concerning the execution and effectuation of the agreements made in the Uruguay round. Since WTO has a huge membership, not all decisions were agreed upon by all the member countries. One of the important issues at Doha was to negotiate on these unresolved issues. Anti-dumping was also a major issue at the Doha round. These ambitious issues made Doha round a blessing in the economically deprived world but unfortunately, this challenging global economic institutional process failed in its endeavour to provide a level platform to the trading nations of the world. It fell prey to the sectoral practices of certain industries that have nothing to gain or lose from globalisation and are uncompetitive as they seek protectionism and lead to economic stagnation. http://news.bbc.co.uk/1/hi/business/1640587.stm accessed on The Doha round could not come to a conclusion and was deemed a failure as both the developed and the under developed nations could not come to a mutually agreeable conclusion. They failed to concur on various major issues and ended up blaming each other for the fiasco. To begin with, there was a major dissension around the issue of agriculture. It was believed that the developed or the rich (affluent) countries were dishonestly persuading the badly off poor nations to open their markets without altering theirs These developed nations refused to even cut down their liberal subsidies to the farmers. To top it all the affluent countries were against removing the subsidies and the monetary aid they provided to their farmers for exports. If this was agreed upon then the agriculture product in the global market would have become much lower in price. The proposals made by the EU (European Union) regarding rules controlling the investment funds of the MNCs (Multinational Corporation) in the developing countries earned a lot of ire. A lot of countries felt that the World Trade Organisation was not a relevant council where these talk could be held and that, if they agreed on the issues put up at the round they would lose a hold over their domestic industries. Both the participating sides played the blame game and blamed each other for the

lack of a successful conclusion to the talks. The economically well off nations refused to match up with the developing nations on issues regarding market access into each others trading sectors. The American and the European Union markets wanted greater accessibility into the markets of the developing nations as they were emerging economies and could provide to be very commercially viable. The European Union wanted desperately to enter these markets to explore its service industry especially in countries like China and India. The developing nations on the other hand wanted to penetrate the American and the European markets for their agricultural products. The developed countries compelled the developing economies to uphold their bargaining status; however the developing countries were unable to do so. It was realized that in the WTO (World Trade Organization) the developing countries had no real power. India, China and United States of America were the countries, that were held responsible for the failure of these talks as they disagreed on the rules and regulations set up on agriculture import. With these rules a tariff could have been inflicted on some products in case there was a situation that the prices dropped or that the imports had soared up. Such rules would help in defending the trading rights of poverty stricken/poor farmers. Conclusion: There have been many continuous efforts that have been made in the past few years to culminate the Doha round successfully, but all in vain as it has not been able to fulfil the commitments & agreements of boosting the economic and financial abundance globally. Apart from the disagreement and disparity amongst the member countries participating in the talks on various reforms, the core reason for the failure is that the countries have lost faith on the global model which is the WTO, This has mainly happened due to its repetitive failure to resolve issues. Doha talks have been able to achieve a lot, but a lot more needs to be accomplished. A few core issues still need to be looked at so that there can be a fruitful solution. The farmers should be protected from an influx of imports and a protective mechanism should be drafted for the agricultural deadlock to be broken. It I imperative for a few countries like India, China and the United States to concur on the issue of the tariff threshold as the farm import rules are proving to be a major impediment and hindrance in the Doha talks. http://news.bbc.co.uk/1/hi/7531099.stm accessed on The WTO would have to reconsider quite a few reforms for a successful culmination of the Doha talks. Agriculture being one of the critical issues of discussion during the Doha talks, it is important to realise that it would be much easier to adopt sectoral discussions than the single undertakings. However these do not come without a risk and if not formulated correctly, they can leave the developed countries at a disadvantage, therefore defeating the purpose of the Doha round. But if the negotiators are more committed to consecutively carry on the discussions in different areas as well and are also able to present a package approach to the negotiations then such talks could be successful. It is also important that all the WTO member countries, regardless of their interests and benefits, lend themselves completely to such negotiations. http://www.agritrade.org/documents/IPC_TradeNegPaper_FINAL.pdf accessed on

Deadlines should be enforced and negotiators should make all possible efforts to meet them. This is because one of the key reasons of the Doha round impasse has been the slow pace at which the talks are being held at, eventually leading to not many of the reforms being implemented. Without any concrete deadline set, the participating nations at the trade talks tend to become complacent and tend to lose focus by getting too involved in their domestic issues and start working towards the trade benefits of their own countries. Failure of the Doha talks could prove to be disastrous for the global security and the economic relations between the trading countries and therefore its imperative to analyze and rectify all the causes of its failure. Besides the reason of incompatibility between the developing and the developed nations there are others factors that doomed the talks. Huge imbalances in current account, impropriety in currencies in both the United States and Europe leading to increased protectionism ,anti-globalistic sentiments which mar every trade talk and most importantly the lack of an enthusiastic approach by the politicians. These factors need to be seriously looked into. For a Doha round to be successful it is very important that WTO stands up against protectionism as this acts as a major hindrance in the trade reforms being discussed and many a times leaves the under developed countries in a pitiful situation. An earnest endeavour should be made to cut tariffs in not only the developed countries but also in developing countries like India, China, and Brazil which have an economic system that is rapidly soaring and coming forth. The government tax on the industrial goods should be definitely lowered, and the regulatory system should be made more transparent and accessible so that the unnecessary barriers to trade are eliminated effectively. The rules governing the industrial trade should be amended and special attention should be paid to the practice of discriminatory pricing or the dual pricing approach adopted by the governments of the WTO member countries. It is also important that a well thought out plan of development measures should be formulated and executed to ensure the success of the Doha round. The irregularities in trade due to the unreasonable grants and subsidies made available to the cotton farmers in most developed countries should be seriously looked into and corrective measures should be adopted accordingly. The LDCs (Least Developed Countries) should be made easily approachable and accessible by all the other countries of the trading world. To add on to all this, key measures to boost trade should be adopted for the poorest countries of the world. They should be provided with assistance in the form of financial aid so that their capacity to trade with other countries increases. http://www.reuters.com/article/2011/05/31/businesspro-us-trade-wto-dohaidUSTRE74U6ZS20110531 It is important for the Americans to realize the importance of the successful completion of the Doha round as the success of Doha round would help them towards prosperity. The misconception that Doha round has nothing much to offer should be silenced, as according to estimates made by the economists, United States alone stands to gain close to 6 billion dollars annually. The world leaders should look beyond their selfish political interests and realize how a mutually accepted solution in global trade can be arrived at, as it has been approximated that the annual growth would run into several billions if this is done. Such an enhanced growth would definitely benefit the global economy. The benefits of trade negotiations finalised now would be reaped a decade later. The Doha round would benefit Europe a lot as it will create more trade opportunities for the organizations, eventually providing better and quality products to the customers. It would help in reducing tariffs in the developing markets like Brazil, China and India. The Doha round would also provide better and greater opportunities to the services sector by opening the service market sector hence markets like those of Europe where services are the strengths of the trading economy would

have immense potential to grow. On completion of the talk, United States could be compelled to alter and reform its farm subsidies to match those of the EU and would also persuade American to reduce its agricultural subsidies, also levelling the trading terms for the EU farmers to a great extent. Doha talks would also aid in ensuring that the tools to defend against the exports from the European Union are used responsibly. This will be done as there was an agreement introduced during these talks. Badly battered global economy would receive a much required and long awaited facelift with the success of the Doha round. Realization of these mammoth benefits by the world leaders could be a great step towards achieving success in the Doha round as one of the major causes of the failure was the lack of political support despite having an excellent institutional framework. http://www.nytimes.com/2011/07/25/opinion/25bhagwati.html?_r=1&scp=3&sq=doha&st accessed on