PPT Presentation by Uri

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    The Doha Development

    AgendaAn UpdateWorld Bank

    December 1, 2005

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    Key Messages

    A successful Doha Round is very important from a

    development perspective Hong Kong Ministerial December 13-18, 2005 originally

    expected to agree negotiating modalities for agriculture andnon-agricultural market access (NAMA), plus progress inservices, rules, trade facilitation and developmentdimension

    WTO Members now recalibrating expectations for HongKong, but maintaining the initial ambition for the Round Hong Kong an intermediary stage on the way to full

    modalities; aim to agree on a range of numbers theouter parameters in the July 2004 frameworks, andcorresponding texts in the rule-making part of the

    negotiations Draft Declaration issued November 26 Sights must not be lowered if Doha is to be a true

    development round There is a lot of work to do before end 2006

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    Important progress has alreadybeen made

    Conditional agreement on eliminationof export subsidies

    Narrowing of Singapore Issues to

    trade facilitation only TRIPS waiver on access to medicines

    July 2004 Framework Agreement

    elements on agriculture Development at the center of a trade

    round

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    Outstanding issues

    Key issues remain to be resolved Agriculture, in particular market access

    Cotton

    Developing countries, especially MICs,

    on NAMA Services

    Including benchmarks

    Development dimension Complementary agenda on aid for

    trade

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    Agricultural Market Access

    Proposal Cut onhighesttariffs %

    Sensitiveproducts % Tariff CapDeved/

    Deving

    US10/10

    90 1

    75/x

    EU10/28

    60 8 100/150

    G2010/12

    75 < or = 1 100/150

    G1010/10

    45/50* 10/15* NO

    * Numbers indicative only

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    Large cuts are needed to reduce actual

    trade distorting domestic support

    -

    10

    20

    30

    40

    50

    60

    70

    EU US Japan

    Overhang

    Actual

    79%*

    47%*

    93%*

    $US billion

    *percentages refer to degree of overhang

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    NAMA

    Definition of the formula Agreement on Swiss formula, but not on coefficients

    Flexibility for developing countries Some groups seek special treatment

    Newly acceded, small and vulnerable Differentiation among developing countries

    EU proposes the same coefficient for developed andadvanced developing countries (with some additionalflexibilities) - but this is very controversial

    Participation in sectoral negotiations? E.g., jewels, sports equipment, pharmaceuticals

    Treatment of unbound tariffs How to calculate the base rate for reductions?

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    Services

    69 offers, plus 30 revised (EU25 counted as 1),but low quality and lack of momentum

    Mandatory quantitative benchmarks forcoverage of commitments in service sectors?

    Opposed by many developing countries Plurilateral negotiations

    Mandatory participation benchmarks?

    Overall objectives for modes

    GATS rules Broad agreement to continue negotiations and

    intensify efforts

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    Development Issues Proposals to strengthen SDT

    Focus on 28 (of the 88 proposals) agreed in principle for Cancn, PLUS5 agreement-specific proposals from LDCs

    Duty and quota free access for all LDC exports Resistance from countries concerned with preference erosion Benefits require flexible rules of origin

    Concerns re preference erosion and net food importers Losses may be less than expected: offsetting gains; timeperiod for implementation; utilization of existing preferences;likely price rises for food

    Serious problem for a few countries, who will require increasedinternational assistance aid for trade- to cope withtransitional adjustment costs

    Adjustment costs should not be a reason to deny the benefitsof liberalization to the vast majority of developing countries Extended transition periods for affected products raise risk

    reducing gains from the round

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    Aid for Trade

    Important complement to but not substitute for an ambitious Doha Round

    Integrated Framework (IF) Increased funding, plus enhanced ability to leverage

    much larger bilateral and multilateral resources Including to address infrastructure constraints

    Geneva-based task force of donors and LDCs working ona new governance structure, for agreement in April 2006 Contributions likely pending agreement on governance

    Adjustment Diagnostics and assistance

    Regional/cross-country needs Exploring need for additional mechanisms

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    Aid for Trade contd

    LDC proposal

    Enhanced IF; adjustment facilitymanaged by the WTO; infrastructure

    fund; debt relief, swaps and buy-back

    Increased focus in bilateral programs

    Scope to make progress in Hong

    Kong Proposals in Nov 26 draft Declaration

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    Rules

    Some highlights

    Debate on clarification of disciplines onanti-dumping and subsidies (including

    fisheries subsidies) expected to becomemore intense in 2006

    Progress on transparency procedures

    concerning RTAs, but limited progresson strengthening systemic disciplines

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    Conclusion

    November 2005, WTO Members recalibrateexpectations for Hong Kong, but maintain theinitial ambition for the Round The hardest decisions of the Doha Round will now need

    to be made in early 2006 End of 2006 target for completion (US TPA expiry, June

    2007) There is too much at stake to lower sights on

    Doha Bank will continue to contribute through

    Advocacy for an ambitious, pro-development Round

    Research on trade policy and reform Aid for trade, including cooperation on enhanced IF TA and CB at globaland country levels, including greater

    integration of trade into country programs