17. "The broader aims and objectives of WTO are to manage and promote international trade in the era of globalization. But the Doha round of negotiations seem doomed due to differences between the developed and the developing countries." Discuss in the Indian perspective. (CSE Mains 2016)GS-II 2016

17. "The broader aims and objectives of WTO are to manage and promote international trade in the era of globalization. But the Doha round of negotiations seem doomed due to differences between the developed and the developing countries." Discuss in the Indian perspective. (CSE Mains 2016)GS-II 2016 


World Trade Organisation came into existence after several rounds of intense negotiation . Since all decisions are taken on a consensual basis many rounds  of negotiation the needed to iron out the differences.

The Doha round held in 2001 was of particular significance because of its equitable nature. The developing and least developed countries were given special differential treatment . The round came to be known as Doha development round and was seen as a step towards development rather than just trade. The significant points were  

• To keep the need of developing countries at the heart of the talks
• Less than full reciprocity on Non Agricultural Market Goods (NAMA)
• Clear mandate for liberalisation in Agricultural Products
• Flexibility in liberalisation for developing countries
• The agreement should cover all aspects of trade in integral manners and signed as a “single undertaking”

However the Doha round has been little progress because of the differences between the developed and developing Nations. The major differences are,

• The developed countries wanted to revise the North South category. They want to follow three track process instead of two track process.  The Developed Nations consider that developing countries especially India and China has benefited from the agreement. Post 2008 economic slowdown the developed countries have become rigid and they are not ready to make any concessions.
• The developed countries wanted to follow early harvest method for  advancement in areas where agreement has been reached. Developing countries were hesitant that once developed Nations have achieved what they want they would run away from the table and shun  future negotiations.
• The developed Nations have pushed through with Trade Facilitation Agreement to promote their Exports.

India wanted the incorporation of a permanent clause to as a Special Safeguard Mechanism to protect it food subsidies. However later India agreed for a temporary peace clause that Grants protection to Indian public procurement from prosecution under WTO rules.

The Nairobi ministerial acknowledged the divergent viewpoints in its declaration.  The implicit acknowledgement that many want to follow the Doha path and few want to explore alternatives, signifies the majority support for the Doha development agenda.

The  Developing Nations G33, could not exert sufficient pressure and were divided among themselves. The developed Nations strategically blamed  few emerging Nations for the failure to reach an agreement. However the per capita income of these developing Nations is significantly lower in comparison to developed Nations.

WTO’s image have suffered and irreversible damage because of the failure of Doha round. Nations have increasingly relied upon multilateral and bilateral treaty which have been more easier to negotiate and yield quick results. US architected Trans Pacific partnership which Southeast Asian nations and Transatlantic partnership with EU. China, India, Japan are negotiating a Regional Comprehensive Economic Partnership with ASEAN. Yeah has also sign numerous bilateral  treaties with various Nations to secure its interests. However these  initiative cannot substitute the need for a global architecture under WTO. Nations should come together in the spirit of cooperation and compromise to agree and principles for fairer global trade.