Issues Responsible for Failure of Doha Talks and Possible Solutions.

Topics: World Trade Organization, European Union, International trade Pages: 10 (3407 words) Published: January 10, 2012
Title: Issues responsible for failure of Doha talks and possible solutions.



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Current Doha round has been one of the most eventful round but its irony that members couldn’t reach to condenses. This research paper concentrates on reasons that caused friction among the nations and possible solutions that can be used to resolve these issues or reasons. Agricultural issues and industrial goods market issues, talks has been suspended without any further notice of next round. At the end all the hard work after years of negotiation wasn’t successful ad differences among the participating nations proved insurmountable.

Pascal Lamy, the Director General of the WTO, tried really hard for the success of these talks but all the sides didn’t show the flexibility that was required for the success of these talks. Failure of Doha round talks also highlight the lack of global leadership at least in some quarters, and this fact is pretty difficult to perceive and there are various reasons for that. Only bright thing emerged from this summit is the talk only need one final push as finishing line is insight. Lot has been already achieved but critical issues need consensus.

Success to these talks can bring much needed global stimulus for global economy of hundreds of billions of dollars annually. Both developed and developing countries can gain something out of it, in fact it is a great opportunity for developed nations to address complaints of developing nations where they feel that economic linearization is highly tilted in favor of developed nations. But failure of these talks can bring some serious consequences; it will seriously damage the reputation of WTO and more importantly multilateralism for which everyone is working hard for will be damaged permanently. Most of the representatives were worried about what could be perceived from their stance i.e. compromising on their stance might appear as compromising on national interest. (Deardorff, 2008)

Reasons for failure of Doha round:

Failure of Doha round talks have put temporary pause on further negotiations, this is not the first time that talks has been failed and further discussion has been suspended. This has happened before also ministerial talks in Seattle in 1997 and in Cancun in 2003 also have met the dead end though there were different reasons and different out come for each of the failure. Exception in case of Doha round is for the first time talks has been suspended officially. Official announcement of suspension of talks came after 14 hour long last meeting for overcoming farm subsidies and tariff cut of G6 members yielded no result. Members of G6 group came together to come to consensus on support for domestic farms, agricultural market access and non agricultural market access were the core points of the discussion.

Agricultural issues and Outcome of G6 meeting:

Pascal Lamy, the Director General of the WTO called this meeting as a last attempt for consensus. This meeting had ministers from India, Japan, Australia, Brazil, unites states and 25 members from European Union. Main aim of this meeting was to reduce or remove hurdles in the way of free trade in the agricultural sector and goods manufacturing. There were many other factors that were needed to be addressed but entire discussion revolved round these issues. Each side remained firm on it stance and more emphasis was put on precondition before further negations. (Bhagwati & Sutherland, 2011)

It was necessary for all the participating nations to meet the deadlines and to achieve that it was necessary to agree on figures and formulae for the tariff cut and subsidy cut in context of industrial goods and agriculture modalities but talk couldn’t move forward in positive direction because irreconcilable differences between participating ministers representing their nations. Failure in the talks was more unfortunate...
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