WTO Meeting in Hong Kong: A Turning Point in Globalisation

Strategic Insights -

The World Trade Organisation (WTO) meeting in Hong Kong has achieved a significant breakthrough, marking a major milestone in the Doha round of trade negotiations. Despite the presence of protesters and the threat of violence, the meeting maintained its momentum, and the negotiators successfully agreed on a draft declaration. This development has sparked cautious optimism among trade experts, who believe that the Doha round may be completed by the end of 2006.

Key Takeaways:

  • The negotiators have reached an agreement to eliminate export subsidies by the end of 2013, a significant addition to the early harvest for the Doha round.
  • The declaration endorses the idea of providing aid for trade to enable poor countries to take advantage of improved opportunities resulting from reduced trade barriers.
  • The 50 least developed countries have been offered duty-free and quota-free access on 97% of import lines by 2008, although this approach has been criticized for being harmful to these countries in the long run.
  • The Doha round may be completed by the end of 2006, with the 149 governments aiming to finalize the agreement by April 30.
  • The EU, US, and Japan have proposed providing aid for trade to support the Doha round's objectives.
  • Pascal Lamy, the WTO's director-general, has been endorsed in setting up a task force to channel aid funds in appropriate ways.

Statistics:

  • The agreement to eliminate export subsidies will affect approximately $5 billion worth of trade.
  • The least developed countries will receive duty-free and quota-free access on 97% of import lines by 2008.
  • The EU, US, and Japan have proposed providing aid for trade to support the Doha round's objectives.

Sources:

  • "Hong Kong Demonstrators Carry the Wrong Message." _hilltimes.com_ (India), n.d.
  • Bhagwati, Jagdish. _In Defense of Globalization_. Oxford University Press, 2004.
  • "WTO Meeting in Hong Kong: A Turning Point in Globalisation" is written by JAGDISH BHAGWATI , university professor of economics and law at Columbia University and senior fellow in international economics at the Council on Foreign Relations.