MULTILATERAL: V&VI. DOHA ROUND & TFA Flashcards
the latest round of multilateral trade negotiations at the WTO, launched on 9-13 November 2001 in Doha, Qatar. It seeks to address issues of special interest to developing and least developed countries. Its aim is to achieve a major reform of the international trading system through the introduction of lower trade barriers and revised trade rules.
Doha Round, semi officially known as Doha Development Agenda (DDA)
The main areas of negotiation of the DDA:
(i) Agriculture;
(ii) Non-agricultural market access (NAMA);
(iii) Services;
(iv) Intellectual property;
(v) Trade and development; (vi) Trade and environment;
(vii) Trade facilitation;
(viii) WTO rules; and
(ix) Dispute Settlement Understanding
Areas for negotiations in Agriculture in DDA
Market access
Export subsidies
domestic support
2 stage tariff reduction on market access
harmonization
further reduction
What is NAMA?
Non-Agricultural Market Access negotiations aim to reduce or, as appropriate, eliminate tariffs, including the reduction or elimination of tariff peaks, high tariffs, and tariff escalation, as well as nontariff barriers particularly on products of export interest to developing countries
Techniques for tariff reduction in the negotiations on NAMA
Linear reduction
Harmonization formula
Sector formula
Cocktail approach
method whereby all tariffs, regardless of their levels, are reduced by an agreed percentage; was applied for industrial products in the 1960s during the Kennedy Round;
Linear reduction
seeks to reduce high tariffs more than lower ones; was used during the Tokyo Round in the 1970s;
Harmonization formula
aims to complete the elimination or harmonization) of tariffs in a given sector; was applied during the I-JR and 1997 ITA negotiations
Sector formula
combines the three (3) techniques for tariff reduction to achieve more meaningful tariff reductions; this technique was used during the UR
Cocktail approach
proposed by Switzerland in the 1973-79 Tokyo Round negotiations as a method to achieve tariff harmonization. It uses a single mathematical formula that produces a narrow range of maximum final tariff rates from a wide set of initial tariffs, i.e., no matter how high the original tariffs are. The final tariff rates are reached through equal annual reductions
Swiss Formula
effects of the Swiss Formula
Swiss Formula would result in harmonization within schedules, but not necessarily across schedules. If a single coefficient is used for all Members, harmonization across schedules would be achieved, but this would also mean that there would be higher average cuts for schedules with higher tariff rates
used as the base rates in the Swiss Formula
bound rates
The Swiss Formula would be used to calculate the bound rates of previously ________________________
unbound tariff lines
first multilateral trade agreement to be concluded since the establishment of the WTO.
Trade Facilitation Agreement