NewsWhore
08-02-2006, 04:10 PM
The Doha Round puzzle, part of the World Trade Organization's efforts to level the playing field for the world's less developed countries, is currently at a standstill due to two major issues that are still nowhere near to being resolved. Economist Roberto Despradel looks at the issues and says that huge agricultural subsidies in the developed nations are one of the obstacles. The second hurdle is the need to reduce tariffs on manufactured goods among the less developed nations.
It is, according to Despradel, difficult to envision just how and when the talks will get under way again. The United States, the major piece of the jigsaw puzzle, has shown signs of reluctance to going forward with the liberalization process. The DR-CAFTA legislation was passed by just one vote. To this the writer asks that we look at the wave of criticisms leveled at China, due to the growing trade deficits and towards India due to the enormous increase in "back office" activities, which are affecting white-collar workers in the United States. At the WTO, the US is one of the countries that has been most reluctant to remove internal subsidy programs, and they are joined by Japan and the European Union.
For the Dominican Republic, this can be good and bad. In the first instance, 90% of Dominican exports are already going to countries with which free trade links already exist or where talks are underway for free trade. Thus the DR would be adversely affected if the rest of the world had access to these same markets under a worldwide free trade union.
This round of the Doha Talks is also pushing the DR to greatly reduce its trade tariffs on imported goods. This would hurt the nation's income, according to Despradel.
However, if the trade talks stall, the subsidies and the internal assistance given to farmers will continue. This will hurt Dominican farmers who are already obliged to open their markets to one of the greatest supporters of the subsidy programs for its own farmers.
Nonetheless, the slow pace of the Doha Round of talks will also fuel more and more bi-lateral talks as well as regional free trade agreements. Despradel says that it is very possible that South American countries will enter this new way of working, and may soon be knocking on our doors, asking for the same deal that the DR is negotiating with the European Union.
Link To Original Article (http://www.dr1.com/index.html#9)
It is, according to Despradel, difficult to envision just how and when the talks will get under way again. The United States, the major piece of the jigsaw puzzle, has shown signs of reluctance to going forward with the liberalization process. The DR-CAFTA legislation was passed by just one vote. To this the writer asks that we look at the wave of criticisms leveled at China, due to the growing trade deficits and towards India due to the enormous increase in "back office" activities, which are affecting white-collar workers in the United States. At the WTO, the US is one of the countries that has been most reluctant to remove internal subsidy programs, and they are joined by Japan and the European Union.
For the Dominican Republic, this can be good and bad. In the first instance, 90% of Dominican exports are already going to countries with which free trade links already exist or where talks are underway for free trade. Thus the DR would be adversely affected if the rest of the world had access to these same markets under a worldwide free trade union.
This round of the Doha Talks is also pushing the DR to greatly reduce its trade tariffs on imported goods. This would hurt the nation's income, according to Despradel.
However, if the trade talks stall, the subsidies and the internal assistance given to farmers will continue. This will hurt Dominican farmers who are already obliged to open their markets to one of the greatest supporters of the subsidy programs for its own farmers.
Nonetheless, the slow pace of the Doha Round of talks will also fuel more and more bi-lateral talks as well as regional free trade agreements. Despradel says that it is very possible that South American countries will enter this new way of working, and may soon be knocking on our doors, asking for the same deal that the DR is negotiating with the European Union.
Link To Original Article (http://www.dr1.com/index.html#9)