Advancing the Doha Development Agenda

Abstract

2005 was unable to capitalise fully on this advance and fell well short of the original goal of setting the terms under which liberalisation would occur. The Hong Kong meeting made some progress in advancing the Doha Development Agenda and hence the pursuit of growth through trade. But much remains to be done, particularly in settling negotiating modalities in agriculture and non-agricultural market access (NAMA) and in putting some flesh onto the bones of the General Agreement on Trade in Services (GATS). And where progress was made it was qualified, whether in dealing with the concerns of African cotton producers or in improving market access for the products of the least developed countries. Given the work still to do, it is not guaranteed that new deadlines will be met or that the DDA will be concluded on time. There is much at stake should the momentum of multilateral liberalisation stall. There is a risk of both major opportunities forgone and of systemic strains as discriminatory bilateral and regional deals add distortions to the framework of global trade and investment. Developing countries would be amongst the principal losers. Charting the way ahead will require that trade policy be seen in a broader domestic context which recognises that market opening works best when it is backed by sound macroeconomic policies, flexible labour markets, a culture of competition and strong institutions. Through this lens, trade reform can be promoted as a necessary tool of growth and development rather than as a concession paid to others. The paper first examines what was achieved at Hong Kong and what still remains to be done, before considering why progress under these negotiations is proving so difficult. We then look at the risks that an enfeebled multilateral trading system would entail, both in terms of liberalization opportunities forgone and systemic strains to the framework of trade and investment. Finally, the paper suggests a way forward in realizing the promise of the Doha Development Agenda.