In our last post, Hopeful Watching: The WTO 9th Ministerial in Bali, we discussed the high hopes with which the Doha Development Round had been launched, its shrinking agenda, and the hope that some consensus would emerge that could lead to a deal focused around the hopes and aspirations of developing countries.
Just in time for the holidays, after round-the-clock discussions that extended into an additional all-nighter of negotiations, the “Bali Package” was delivered. It consists of the following small deals pulled from the broader Doha Agenda:
- Agreement on Trade Facilitation that creates new rules to streamline customs and ports procedures around the world;
- Small agreements on Agriculture and on Cotton
On Agriculture, the thorny issue of Food Security led to a “peace clause” for four years during which food stockpiling programs by developing countries which meet certain criteria will be shielded from trade challenges, even if they negatively impact other countries’ trade, while they negotiate a permanent solution. This outcome, where it’s now advanced developing countries, notably India, that are seeking protection for their agriculture subsidies represents a complete turn-around from the original focus of the Doha Round – elimination by developed countries of their programs of subsidies. This issue, perhaps more than any other, indicates the extent to which the Doha agenda has evolved since 2001.
The consensus around Development Issues emerged in the form of Members’ commitments to implement four previous decisions:
- Decision on duty-free, quota-free (DFQF) access for products of least developed countries;
- Decision to simplify preferential rules of origin for least developed countries to make it easier for LDCs to qualify for DFQF entry into the importing countries;
- Operationalizing the “services waiver” that will grant least developed countries preferential access to other countries’ services markets;
- Decision on a “monitoring mechanism” to analyze and review implementation of special and differential treatment rules for developing countries.
New WTO Member
In other business, thirteen years after submitting its application to join the WTO, Yemen was formally welcomed into its ranks. Once Yemen ratifies the terms of its accession, it will become the WTO’s 160th member. It is also the seventh (7th) LDC to join the WTO. Implementation of the Development Decisions (above) will improve the terms on which LDC products access world markets whether or not they join the WTO.
The Bali Package also includes hopeful language about returning to the other issues on the Doha Agenda. These include market access for manufactured goods, more substantive agreements on agriculture and an agreement on services. However, on services, for example, separate negotiations have already begun to conclude the Trade in Services Agreement (TISA). These talks are being pursued on a plurilateral basis, i.e. a sub-set of WTO members, allowing them to bypass the pesky requirement to achieve consensus among all (now 160) WTO members. It is therefore more realistic to conclude that the Bali Package has already delivered all that can be reaped from the Doha Agenda.