Rescuing the Doha Round

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WHAT AILS DOHA?

Virtually all observers concur that the Doha Round of multilateral trade negotiations in the World Trade Organization is faltering badly. Agreement may have been reached on the principle (although not the date) of eliminating export subsidies for agriculture, but very little else has been resolved since the talks were launched four years ago. Almost nothing of note has been proposed, let alone settled, in the crucial services sector. Even the necessary procedures for handling integral parts of the negotiations, including agriculture and non-agricultural market access, have yet to be worked out, although the target date for finishing the round is only a year away. Deep uncertainty prevails despite the decision in 2003 to ease the negotiations by removing two critical issues, investment and competition policy, from the agenda. Moreover, the round has never even attempted to seriously address the two largest problems facing today's global trading system: security concerns since the attacks of September 11, 2001, especially the risk that world trade would seize up in the wake of another major terrorist attack, and the absence of effective control over the increasing number of preferential pacts involving many of the world's largest trading nations.