Conclude doable Doha

It is now increasingly apparent that concluding the long-running Doha Round multilateral trade negotiations without further delay, with the tariff and subsidy reforms already agreed to, would mean substantial gains globally. Note, for instance, that at the recent Geneva ministerial of the World Trade Organization, commerce minister Anand Sharma reiterated that on industrial goods, India considered the issue of bringing down tariffs and improving market access more or less settled.

There may still be some country-specific issues of flexibility that need to be negotiated for industrial goods, labelled non-agricultural market access (Nama). But given that Nama accounts for over 90% of world merchandise trade, we need to conclude Doha and pocket the gains substantially agreed to. The move would lower tariffs, ban industrial country subsidy for farm exports and purposefully reduce distorting domestic support: by 70% in the EU and 60% in the US. Further, average tariffs on farm produce that exporters face would reduce to 12% (from 14.5%) and those for Nama to less than 2.5% (from about 3%). There would be other gains as well.

The way ahead is to conclude the Doha Round on the basis of the consensus already built, and to leave the contested issues involving sectoral exemptions, etc, for future negotiations and narrow the differences in a time-bound manner. There would be clear environmental benefits as well, in having such a twin-track approach. The move would, say, lower tariffs on capital equipment that can help mitigate global warming; subsidy reform in the North would also discourage over-fishing, over-grazing and other untoward practices.

Besides, as negotiations on trade facilitation are well advanced, follow through and formal agreement would slash red tape, reduce procedural delays and, generally speaking, expand trade opportunities. Additionally, the least-developed countries would gain greater market access that is ‘duty free and quota free’, and their ability to take advantage of new opportunities will be enhanced by the aid-for-trade initiative. Completing Doha would create ‘space’ for multilateral cooperation too.