UNCTAD THE DOHA MANDATES ON DEVELOPMENT ISSUES UNCTAD Commercial Diplomacy Programme October 2002 1 The scope of the Doha agenda UNCTAD the traditional trade agenda: MARKET ACCESS (border measures) •Agriculture •Services •Non-agric market access •Rules (dumping, subsidies, regionalism) the expanded trade agenda: DOMESTIC POLICIES (within the border measures) •TRIPS (health, GIs) •Trade and environment •Singapore issues (investment,competition, gvt. procurement, trade facilitation) •Debt and finance, transfer of technology Cross-cutting mandates : Implementation issues (incl. textiles) Technical assistance LDCs and small economies Special and differential treatment 2 UNCTAD The “single undertaking” means that, at the end of the Doha process: A complex package of various commitments has to be agreed as a whole and Developing countries need to achieve a new balance of rights and obligations with a strong development dimension Cross-cutting Border measures 3 The Doha Work Programme will be a concrete UNCTAD “Development Agenda” for developing countries IF : • On Implementation issues: satisfactory solutions are found, for example: – On the implementation of the agreement on textiles; – On the implementation of the TRIPS and Health Declaration. • On Special and differential treatment (S&D): provisions are made effective and operational, for example : – In helping the participation of developing countries in trade in services; – In making TRIPS an instrument to transfer technology. 4 The Doha process will be a concrete “development agenda” for developing countries IF : UNCTAD • On agriculture: new rules accommodate both developing competitive exporters and net food importing countries. • On services: the new liberalization takes into account the requests made by developing countries in their priority sectors. • On non-agriculture products: barriers for the main exports of developing countries are eliminated, taking into account the erosion of preferential regimes. 5 UNCTAD The state of play of the Doha process : The main work done so far concentrates on: • Special and differential treatment = no consensus • Implementation issues = fragmentation in several negotiating bodies, poor results • Agriculture = negotiations on “modalities” ongoing (on reduction of domestic support, market access barriers, and export competition), many divergent positions • Services = requests and offers process ongoing • TRIPS: no consensus • Market access = negotiations on modalities just starting •The process is getting into the nitty-gritty •No real progress in any issue •Increasing participation and proposals of developing countries 6 UNCTAD Some deadlines to assess the development content of the process: by December 2002: – Stocktaking in agriculture and services – Chairman’s modalities on agriculture – S&D = make recommendations to the General Council – Review of technical assistance – Implementation issues – Mini-ministerial in Australia (14-15 Nov.) by March 2003: – Agriculture: start negotiations? – Offers on services to be submitted – Many implementation issues to be settled by Sept.2003 : 5th Ministerial Conference (Cancun) = “mid-term review” 7 The development content of the trade agenda means: Provide developing countries with means to take advantage of the trade liberalisation That requires: 1. Market access 2. Balanced trade rules 3. Negotiating and institutional capacity 4. Supply capacity 1 and 2 can be negotiated at the WTO; 3 means technical assistance and capacity building provided by the WTO and other agencies (UNCTAD); 4 is essential to take full benefit of the trade opportunities arising from the negotiations : role of development agencies and financial institutions 8 Factors with direct implications for the negotiations • United States Trade Promotion Authority Act, the Farm Bill, and the pending WTO disputes (steel, orange juice…) • European Union’s Common Agriculture Policy: no reductions in domestic support until 2007 • Regional processes: ACP/EU, FTAA, APEC, subregional schemes among developing countries… and bilateral FTAs. 9 UNCTAD UNCTAD: • Only UN entity having a mandate to review developments and issues in the multilateral trading system and trade negotiations since the Tokyo Round from developing countries’ perspective; • Trade and Development Board has a regular agenda item: “Review of developments and issues in post-Doha of particular concern to developing countries” which is forwarded to UN GA under the item “trade and development”; • UNCTAD Post-Doha Technical Assistance and Capacity Building Programme (demand-driven). 10