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“The majority of WTO Members are developing countries. We seek to place their needs and interests at the heart of the Work Programme adopted in this Declaration”

Doha Ministerial Declaration, November 2001

A fundamental aspect of the Doha Round of negotiations is that it addresses some of the imbalances in trade rules that have hindered developing country exports. This is to ensure that the rules under consideration provide developing countries with real market opportunities and accordingly opportunities to enhance their development and growth prospects. The development dimension permeates all negotiating areas. When the Doha Round is concluded, the multilateral trading system will be more open — particularly for developing countries’ exports — and will have a strengthened rule-making structure that will be more balanced, especially towards developing country interests and concerns. There is, therefore, a clear connection between concluding the DDA negotiations and bringing about MDG 8.

The official MDG indicators, developed to assess progress towards achieving the goals, spell out the importance of increased market access in meeting the needs of developing and least-developed countries. These include: 1) increased duty-free access for developing countries, 2) tariff reduction (especially on agricultural products, textiles and clothing) and 3) the reduction of trade-distorting subsidies from developed countries. All of these elements are part of the WTO agreements and are subject to negotiations. A successful conclusion of the Doha Round would therefore go a long way in addressing developing country needs and contribute significantly to the achievement of MDG 8.

A successful conclusion of the Doha Round would address developing country needs and contribute significantly to the achievement of MDG 8

Concluding the Doha Development Round would address the trade distortions which plague the agriculture sector to the detriment of developing countries, many of which enjoy a comparative advantage in this sector. The MDGs also recognize the agricultural sector as an important area where progress towards development can be made. A more open agricultural sector would also allow for the diversification of agricultural production in developing countries. A decision taken by WTO members to provide duty-free and quota-free market access to products from LDCs (see Box 1) will be beneficial to those countries.

The agricultural sector has traditionally been a highly protected sector in many countries. While agriculture makes a significant contribution to the economies of a large number of developing countries, many of the world’s agricultural producers are disadvantaged in the world trading environment because of high tariff barriers and competition from producers — particularly in developed countries — that receive high levels of domestic or export-related support. Already prior to the launching of the Doha Round, WTO members had committed themselves to the long-term objective of establishing a fair and market-oriented trading system for agricultural products. The Doha Round strengthened this resolve by allowing for continued negotiations between members to achieve this objective. In the context of the Doha Round, tariff barriers and trade-distorting domestic support in agriculture will be substantially cut. Furthermore, WTO members have agreed as part of the overall package to eliminate agricultural export subsidies completely.

Important market access opportunities can similarly be expected for developing countries in the nonagricultural area. Trade in industrial products accounts for more than 90 per cent of world trade in goods and encompasses some key products of export interest to many developing countries. Thanks to previous rounds of trade negotiations, tariffs in developed countries on industrial products are today on average relatively low. However, this average often hides remaining high tariffs on products in which developing countries have a particular stake. A reduction in tariffs and non-tariff barriers to industrial trade would thus provide important export possibilities for developing countries. In fact, the mandate for the industrial negotiations specifically calls for the reduction or elimination of trade barriers on products of export interest to developing countries. As with agriculture, LDCs will reap additional benefits in the industrial area from the duty-free and quota-free market access decision (see Box 1).

Other elements of the Doha Round also support the achievement of MDG 8. WTO members are simultaneously working to bring down other obstacles to merchandise trade. The aim of the Doha Round’s trade facilitation negotiations is to improve the efficiency of transactions by expediting the movement, release and clearance of goods across borders, thereby reducing transaction and transit costs that are particularly important for landlocked developing countries, while increasing possibilities for small and medium-sized enterprises to expand and participate more actively in international trade.  The Doha Round also encompasses services. Services is the dominant economic activity in virtually all countries of the world, and the opening of services trade can provide many opportunities to developing countries. Developing countries have voiced their interest in many services sectors (including professional services, computer and related services, telecommunication services, construction and related engineering services, distribution services, energy services, environmental services, financial services, tourism services and transport services) and in supplying services through the various means identified by the WTO, including through the cross-border supply of services and the temporary movement of professionals across borders. Negotiations are also advancing to provide LDC service providers with preferential market access.

The opening of services trade can provide many opportunities to developing countries

Through further market opening in emerging economies, the Doha Development Round negotiations will also enhance the potential for South-South trade, with the resulting benefits to developing countries. This could be a very significant outcome of the Doha Round.

Additionally, the Doha Round would strengthen the multilateral trading system through addressing fisheries subsidies, which contribute to over-fishing. The negotiations will also lead to an improvement in the existing rules against unfair trading practices. Strengthening the regulations governing the multilateral trading system will benefit all WTO members, but smaller players in global trade will benefit in particular, as they will from the fact that the principle of special and differential treatment (S&D) in favour of developing countries governs all areas of negotiation in the Doha Round. Finally, the Doha Round will provide for more certainty in trading arrangements by securing binding commitments from member countries. Estimates of the gains to developing countries from a conclusion of the Doha Round are summarized in Box 2.

In summary, completion of the Doha Round would be a fundamentally important contribution by the WTO to the realization of the MDGs. The Doha Round provides a unique opportunity for the international community to tackle issues in international trade that cannot be addressed in other forums.

In summary, completion of the Doha Round would be a fundamentally important contribution of the WTO to the realization of the MDGs. The Doha Round provides a unique opportunity for the international community to tackle issues in international trade that cannot be tackled in other forums.