International Trade & Enterprise Essay

Question:

Discuss about the International Trade & Enterprise.

Answer:

Introduction

The WTO (World Trade Organization) is an international organization that deals with the global rules of trade. WTO plays a major role in order to manage the trade rules as well as agreements that are mainly negotiated by the WTO’s members. Doha agreement is also an important trade agreement of WTO. Along with this, this research essay is helpful to describe the Doha agreement of WTO in an effective and a significant manner.

Doha Agreement of WTO

‘Doha Agreement’ that is also known as ‘Doha Round’ or ‘Doha Development Agenda’ is a trade negotiation agreement among the WTO’s members. The ‘Doha Round’ was officially commenced in November 2001, in Doha, Qatar at the 4th Ministerial Conference of WTO (Lester, 2016). Along with this, the major objective of Doha agreement was to amend trade rules to reduce trade barriers and to improve international trading system in an effective and a more comprehensive manner. The Doha agreement covers around twenty areas of trade. The basic objective of Doha round is to improve the trading view of developing countries. In addition to this, the Doha Agreement was helpful to provide the authorization for the negotiations that are related to services, agriculture, trade facilitation, WTO rules, an intellectual property, industrial goods market access, development and so on (Hohmann, 2008).

On the other hand, the Doha agreement is also helpful to address the problems that are faced by developing countries in order to implement the WTO agreements at the time of trade. Moreover, there are numerous major issues that were major subject of Doha round. These issues are listed as below:

  • To develop agricultural subsidies
  • To guarantee new liberalization in the global economy
  • To develop entrance of developing countries into global markets for their exports (Ahearn, 2011).

Along with this, Doha agreement was also helpful to provide opportunities to developing countries; so they may revitalize confidence in global trade and also robust global trading system in an appropriate manner. Moreover, the purpose of the Doha Round was to condense trade barriers in order to spread out global economic growth, opportunity and development effectively (Lester, 2016). In addition to this, Doha Trade Round mainly focuses on four important areas. The major areas of Doha round are described as below:

To Cut Tariffs on Industrial Goods & Services: The main focus of Doha Round was to reduce the tariff rates of agricultural and non-agricultural goods & services. The main reason behind it is that, in 2000, the average tariff rates on agricultural products were 22.9% for Canada, 18.2% for Japan, 17.3% for the EU (European Union), and 11% for the US (United States) (Hufbauer, Schott and Wong, 2010). Apart from this, the tariff rates on non-agricultural products were 4.7% for the US, 4.5% for the EU, 4.4% for Canada, and 4.0% for Japan.

To Phase out Subsidies: The other main object of Doha agreement was to phasing out subsidies. It is because of subsidies initiate noteworthy distortions into the creation of agricultural products. These subsidies decrease the volume of agricultural trade, increase prices to consumers, and also support the overproduction of products that are deeply financed (Wilkinson and Scott, 2013).

To Reduce Antidumping Laws: The Doha agreement was also helpful in order to diminish antidumping laws that countries impose on foreign goods.

Health Protection in Poorer Nations: The Doha agreement was helpful to illustrate that intellectual property must be allocate health fortification in poorer nations. According to this agreement, rich countries would be obliged to fulfill all the rules of agreement within a year (Eilers, 2011). But, the poor and the very poorest countries will have a relaxation of 5 years and 10 years respectively. Thus, Doha agreement was very valuable to provide support to the developing countries.

Conclusion

On the basis of above analysis, it can be said that, Doha agreement was an important agreement of WTO. Moreover, the Doha agreement was helpful to reduce trade barrier and to improve trade opportunities in an effective and an appropriate manner.

References

Ahearn, R. J. (2011). International Trade and Finance: Key Policy Issues for the 112th Congress. USA: DIANE Publishing.

Eilers, H. (2011). The World Trade Organization and the Doha Round 2008 - A Pause or Breakdown? Germany: GRIN Verlag.

Hohmann, H. (2008). Agreeing and Implementing the Doha Round of the WTO. USA: Cambridge University Press.

Hufbauer, G.C., Schott, J.J. and Wong, W. F. (2010). Figuring Out the Doha Round. Australia: Peterson Institute.

Lester, S. (2016). Is the Doha Round Over? The WTO's Negotiating Agenda for 2016 and Beyond.

Wilkinson, R. and Scott, J. (2013). Trade, Poverty, Development: Getting Beyond the WTO's Doha Deadlock. NY: Routledge.

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