What is the Doha development round?It is the latest round of World Trade Organisation (WTO) negotiations aimed at liberalising global trade in agriculture, industrial products and services. Talks began in November 2001 with participants pledging to emphasise the needs of developing states.
How would a deal work to liberalise trade?
The 153 member states in the WTO would agree to cut the tariffs they levy on imports and the subsidies they pay to support domestic industry and farmers, both of which can distort global trade. They would also try to eliminate non-tariff barriers such as complicated rules that make it difficult for foreign companies to access new markets.
What is happening this week?
Ministers from 35 countries are meeting in Geneva to try to agree the basis for a WTO agreement. After seven years of deadlock the world's seven biggest trade blocs finally agreed late on Friday to consider a compromise package on cutting tariffs on farm and industrial goods, which has raised real hopes that a deal may now be possible.
What is the compromise proposal?
Developed economies such as the EU and US will have to cut domestic subsidy limits by 80 and 70 per cent respectively. The biggest concern for Irish farmers is a proposed 23 per cent reduction on the tariffs levied on foreign beef imported into the EU. In return developing economies such as India must reduce tariffs on imports from the developed world, although these will have more flexibility for them to protect domestic industry.
What are the chances of a deal?
A deal is closer than at any point in the past seven years but problems remain. India - a crucial state in the talks - has serious concerns about the compromise, which it says could hurt its farming and industrial sectors.
Other difficulties are:
the EU's preferential tariff regime for banana
imports from former colonies;
US subsidies for cotton farmers; and rules that offer protection for place names associated
with foods, such as Parma ham.
What are the benefits of a global trade deal?
Supporters of global trade deals say they stimulate economic growth, reduce prices for consumers and create new jobs. The WTO estimates the 1995 Uruguay round trade deal added between $109 billion-$510 billion to the world income. But NGOs such as Oxfam say global trade deals often benefit rich countries more than less developed economies by enabling their firms to compete with those in the developing world.