The meeting of WTO Ministers in Cancun/Mexico ended without reaching a consensus in September 2003. But this is not the end of the WTO. The general advisory board of the World Trade Organization is called up for December 2003 to work with the negotiated text of the conference as a discussion basis.
Key Issues for the 5 th WTO Round were Agriculture, especially market access and subsidies issues, and Development Issues - over three-quarters of WTO members are developing countries.
While the aims of the Doha negotiating round had not changed, the political and economic conditio ns in which the negotiations were taking place had changed enormously in the last year. This included a slowdown in the world economy, currency instability, g eopolitical differences, outstanding trade disputes, and the proliferation of bilateral and regional trade agreements. An agreement on agriculture would have been a precond ition for success for the round of WTO negotiations. Issues were the dismantling of export subsidies, the reduction or removal of market access restrictions that block imports or exports of agrifood products, harmonization of regulations and the reduction of regulatory barriers with respect to phytosanitary standards and genetically- modified organisms, and a re-definition of antidumping to reflect real costs of production (before and after subsidies) in all countries. Another key point of Cancun was the General Agreement on Trade in Services - GATS.
Before the round the developing countries called for the implementation of measures agreed under the last Uruguay round of negotiations: m arket access for agricultural and nonagricultural goods, as well as services, rules for governing special and differential treatment, procurement, and interdependence - the linkage of progress on trade negotiations with the resolution of other issues like agriculture and access to pharmaceuticals under TRIPS.
Table of Contents
1 The WTO Minister Conference at Cancun
1.1 What happened?
1.2 The Way forward
1.3 Preliminary Remarks
1.4 Theory of Trade
1.4.1 Economics
1.4.2 Comparative Advantage
2 The underlying Issues – before Cancun
2.1 Political & Economic Challenges
2.2 The Benefits of Market Liberalization
2.3 Key Issues before Cancun
2.3.1 Agriculture
2.3.2 Services (General Agreement on Trade in Services – GATS)
2.3.3 Developing Country Issues
2.3.3.1 Market Access
2.3.3.2 TRIPS
2.3.3.3 New Rules
2.3.3.4 Special & Differential Treatment
3 What now – A streamlined Agenda?
Objectives and Topics
This paper examines the collapse of the 5th WTO Ministerial Conference in Cancun in 2003 and analyzes the underlying causes, including the friction regarding agricultural subsidies and the negotiation of the "Singapore Issues." The primary research focus is to evaluate the political and economic hurdles facing the Doha Development Agenda and to assess whether a streamlined, reduced negotiating agenda could facilitate progress in global trade governance.
- Analysis of the failure of the WTO Cancun Ministerial Meeting.
- Economic and political implications of trade liberalization for developed and developing nations.
- Core challenges regarding Agriculture, TRIPS, and the GATS framework.
- Strategic evaluation of the "Singapore Issues" and their role in trade negotiations.
- Discussion on the future trajectory of the WTO and international trade governance.
Excerpt from the Book
1.4.1 Economics
In economic theory, free trade benefits everyone, even the least advantaged. Unfortunately, the real world falls short of trade theory. In the real world, economic competitors use governments to shape national policies and to negotiate the rules of International Trade. From another direction, non-profit champions of social and environmental causes seek to establish rules that limit or redress the social costs of liberalized trade. The permutations of conflicting interests are endless, as are the angles they play in trade negotiations. In the contest over trade rules since the 1950s, leading countries as well as global institutions such as the WTO, the World Bank, and the International Monetary Fund (IMF) have exerted their power to broaden and deepen states’ commitments to the liberal international trading system as the best way to produce overall gains. Yet, the intense discord from Seattle to Doha and now Cancun suggests that large numbers of people are losing faith in both economic liberalism and the judgment of the Bretton Woods institutions. Some do not like the environmental, cultural, and other effects of the type of economic growth produced through this system. Many dislike the distribution of benefits, arguing essentially that the rich get richer and the poor get poorer – between countries and within them.
Summary of Chapters
1 The WTO Minister Conference at Cancun: This chapter outlines the events leading to the collapse of the September 2003 ministerial meeting and provides a theoretical foundation based on trade economics and comparative advantage.
2 The underlying Issues – before Cancun: This section details the critical political and economic challenges, emphasizing the necessity of resolving agricultural subsidies and addressing the needs of developing countries within the Doha framework.
3 What now – A streamlined Agenda?: This final chapter discusses the strategic responses to the Cancun failure, specifically evaluating the arguments for removing the complex "Singapore Issues" from the immediate negotiating agenda.
Keywords
Cancun, WTO, Doha Development Agenda, Agriculture, TRIPS, GATS, Developing Countries, Market Liberalization, Singapore Issues, Trade Theory, Export Subsidies, International Trade, Globalization, Ministerial Conference, Trade Policy
Frequently Asked Questions
What is the core focus of this research paper?
The paper primarily analyzes the reasons for the lack of consensus at the 2003 WTO Ministerial meeting in Cancun and the subsequent impact on the Doha Development Agenda.
What are the central themes discussed?
The work covers agricultural trade barriers, market access, the GATS, the protection of intellectual property (TRIPS), and the specific difficulties faced by developing nations in global trade.
What is the primary goal of the author?
The goal is to understand the obstacles that led to the collapse of the Cancun meeting and to debate whether streamlining the negotiation agenda, particularly regarding the Singapore Issues, is a viable path forward.
Which scientific methods are applied?
The author employs a qualitative analysis of trade policy, institutional challenges, and current economic theories, substantiated by existing reports from international organizations and official WTO documents.
What is covered in the main body of the text?
The body analyzes the political and economic climate of 2003, the theoretical underpinnings of free trade, the specific disputes in agriculture and services, and the divergent interests of developed versus developing economies.
Which keywords best characterize this work?
Key terms include Cancun, WTO, Doha Development Agenda, Agriculture, TRIPS, GATS, and Developing Countries.
How does the author view the "Singapore Issues"?
The author notes that while there are calls to remove these complex issues to unblock negotiations, there is significant debate about whether they are sufficiently related to the core of the global trading system.
Does the failure in Cancun mark the end of the WTO?
No, the author emphasizes that despite the failure, ongoing negotiations are technically supposed to continue and the WTO's institutional foundations remain intact.
- Quote paper
- Christian Nitschke (Author), 2003, The WTO Round in Cancun, Munich, GRIN Verlag, https://www.grin.com/document/25028
