The impact of a multilateral trading system, as embodied in the World Trade Organisation (WTO) rules introduced in 1995, has contributed to significant economic growth, development and employment. Non-discrimination, transparency and fair trade are the main principles of the WTO. Developing countries have very different priorities and interests concerning their obligations under regional economic integration and their dependence on trade in agriculture, manufacturing and services (Schott, 2000, p. 15).
The Uruguay Round negotiations which began in November 1982 by the ministerial meeting of the General Agreements on Tariff and Trade (GATT) members in Geneva, Switzerland, took the first steps in reducing barriers in both agriculture and services. Industrial tariffs have decreased significantly over time, but with exceptions.
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The agenda for agricultural reform is extensive; many issues such as subsidies, tariff- quotas and other non-tariff barriers remain (Schott, 2000, p. 15). Although it is the obligation of the members to reduce tariffs and other non-tariff barriers, tariffs imposed by developing countries are still generally high.
Trade related investment measures agreement (TRIMs) emerged from the Singapore Ministerial Conference of the WTO in 1996. Under this conference the three working groups on trade and investment, competition policy and transparency in government procurement were set up. This negotiation was weakened due to the conflict between members in terms of the coverage and the characteristics of the new regulations. It can be said that export performance and technology requirements were not covered by the TRIMs agreement under the Uruguay Round (WTO, 2006).
The 1986 goals of TRIMs were to expand and promote world trade liberalisation and facilitate investment across international borders to promote economic growth of all partners, especially the developing countries via the encouraging of free competition. Trade in services was not included in this agreement. Therefore, it can be said that TRIMs have the effect of prescribing domestic content requirements, while enhancing and providing specific means of export performance contributing to foreign investors (Moran, 2000, p. 223). The phase-out period of these measures is two years for developed countries and five years for developing countries. Nevertheless, developing and least-developed countries can extend this period.
The Doha Declaration emerged from the Fourth Ministerial Conference in Doha, Qatar in 2001, and provided important negotiations including the implementation of the current agreement issues. For agriculture, the long-run goal to establish a fair and market oriented trading system was reconfirmed. The governments of member countries are committed to substantial open access to their markets, to reduce export subsidies in all forms and to decrease domestic support that can distort trade. Market access for non-agricultural products was also included in the Doha Declaration and tariff-cutting negotiations on all non-agricultural products have been implemented. The objective of this scheme is to eliminate tariffs and non-tariff barriers especially on export products of developing countries.
Presently, due to the lack of consideration of developed countries, major concern for developing countries under the Doha Declarations still exists and involves
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trade related intellectual property rights (TRIPs) (Grimwade, 2004, p. 15). TRIPs were implemented in 1998; nevertheless the agriculture issue remains the crucial barrier to complete the declaration. The developing countries are not reducing their tariffs in agricultural goods enough, despite serious requests from the major economic blocks, e.g. the US and the EU. However, due to multilateral tariff cuts, less developed countries have been granted preference in exporting to the developed countries. Therefore, it can be said that the developing countries’ benefits from the Doha Declaration can be attributed to the vigorous enforcement of the WTO provisions for the developing countries
The Doha Declaration also supports the promotion of public health in member countries via both access to existing medicines and the creation of new medicines. Nevertheless, under the Doha Declaration, some countries may experience upfront problems while making and using compulsory licensing if they have too little or no pharmaceutical manufacturing capacity. Thus, the deadline of this issue has been extended to applying the provisions on pharmaceutical patents for least-developed countries until 2016. Trade facilitation will progress continuously under the Doha Declaration on the basis of further expediting the movement, release and clearance of goods that include goods in transit. The negotiation also considered anti-damping, subsidies and countervailing measures (WTO, 2000).
The Doha Declaration can be regarded as the principle instigation towards multilateral trade liberalisation. However, this negotiation involved some uncertainty. The core challenges concern the potential benefits and costs analysis and assessment of the agreement, particularly for the developing countries. As a result, the necessity for a new round of trade negotiations emerged in 2005.
The Sixth WTO Ministerial Conference was set up in Hong Kong in December 2005. Most of the trade related issues for both developing and developed countries had already been discussed repeatedly in the earlier Doha Declarations. This negotiation includes the important issues concerning the lack of transparency and democracy in the decision-making processes and the unequal power of the developed countries over the developing countries that produce distortion in the trade polices. Consequently, numerous trade aspects were reconsidered in this negotiation. The Doha Declaration was renewed and it was resolved to continue discussions with little success
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in 2006 (WTO, 2006). Finally the conference was suspended indefinitely and efforts are now being made to organise another in the future.