Abstract
Abstract This paper develops three major themes. First, the atmosphere of gloom around the multilateral trading system due to dim prospects of a successful conclusion of the Doha Round notwithstanding, global trade regime remains open and the institution in charge of it, the World Trade Organization, is in sound health. If anything, the Doha Round has been a victim of its own success: considerable de facto liberalization in agriculture has been achieved since the launch of the round. Second, to secure the future of the multilateral trading system, it is nevertheless crucial that the Doha Round is brought to a conclusion even if in a highly diluted form. The damage to the system from an outright failure will be very substantial. Finally, closing the Doha Round will require the United States leading the negotiations. Suggestions that as the largest merchandise exporter, China should now take the lead are frivolous.
Highlights
In addition to the obvious—that we both specialize in trade policy—there are two important similarities between the writings of Rolf Langhammer, whom we honor today, and my own
The vast majority of our writings on trade liberalization are in the spirit of the Most Favored Nation (MFN) principle as enshrined in Article I of the General Agreement on Tariffs and Trade (GATT) of the World Trade Organization (WTO)
An outstanding contribution by Rolf (Langhammer 2009) along these lines is his recent paper provocatively titled “Why a marketplace must not discriminate?” In this paper, he systematically assesses virtually all aspects of the case for the Transatlantic Free Trade Area (TAFTA) and, arguing that it will involve far too much discrimination against third countries, comes out in favor of what he calls the Transatlantic Trade Liberalization Initiative (TALI) that would refrain from discrimination and will ‘facilitate global trade by multilateralizing rules for transaction procedures concluded between the European Union (EU) and the US, and to extend these to third parties.’ (p. 20)
Summary
In addition to the obvious—that we both specialize in trade policy—there are two important similarities between the writings of Rolf Langhammer, whom we honor today, and my own We both have a deep interest in trade and trade policies as they relate to the welfare of the developing countries; and we both take a skeptical view of the discriminatory route to freeing up trade. The vast majority of our writings on trade liberalization are in the spirit of the Most Favored Nation (MFN) principle as enshrined in Article I of the General Agreement on Tariffs and Trade (GATT) of the World Trade Organization (WTO) This view predisposes us unfavorably towards myriad Free Trade Area (FTA) agreements with their complex rules of origin that have created a virtual spaghetti bowl of tariffs, undermining the multilateral trading system. Doha is not really dead—certainly, none of the certified doctors has made such a pronouncement
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