US POSITION AT DOHAUS POSITION AT DOHANorth American & Global EconomyNorth American & Global Economy

CPL2 - 561 - 781CPL2 - 561 - 781 Professor: Kenneth N. MatziorinisProfessor: Kenneth N. Matziorinis

PRESENTED BY PRESENTED BY

JING ZHAO JING ZHAO 260 195 799260 195 799

GEORGE DOBRINESCUGEORGE DOBRINESCU 260 198 216260 198 216

Executive SummeryExecutive Summery Country profileCountry profile

US participation in the WTOUS participation in the WTO

The major issues at Doha and US positionThe major issues at Doha and US position

US strategy and options at DohaUS strategy and options at Doha

ConclusionsConclusions

COUNTRY PROFILE – BRIEF COUNTRY PROFILE – BRIEF HISTORYHISTORY

1776 - Britain's American colonies broke with 1776 - Britain's American colonies broke with the mother country. the mother country.

During the 19th and 20th centuries, 37 new During the 19th and 20th centuries, 37 new states were added to the original 13. states were added to the original 13.

The two most traumatic experiences in the The two most traumatic experiences in the nation's history were the Civil War (1861 -nation's history were the Civil War (1861 -1865) and the Great Depression of the 1930s. 1865) and the Great Depression of the 1930s.

Buoyed by victories in World Wars I and II Buoyed by victories in World Wars I and II and the end of the Cold War in 1991, the US and the end of the Cold War in 1991, the US remains the world's most powerful nation remains the world's most powerful nation state. state.

COUNTRY PROFILE – COUNTRY PROFILE – POPULATIONPOPULATION

                                                       

The United States is the third most The United States is the third most populous country in the world following populous country in the world following China and India.China and India.

The U.S. population - currently more than The U.S. population - currently more than 300 million (Nov. 2006 - 300,176,035).300 million (Nov. 2006 - 300,176,035).

The population growth rate is 0.91% per The population growth rate is 0.91% per year.year.

ProjectionsProjections - - U.S. population will grow to U.S. population will grow to 394 million by the year 2050394 million by the year 2050

COUNTRY PROFILE – COUNTRY PROFILE – POPULATIONPOPULATION

Ethnic groups: white 81.7%, black 12.9%, AsiEthnic groups: white 81.7%, black 12.9%, Asian 4.2%, Amerindian and Alaska native 1%, an 4.2%, Amerindian and Alaska native 1%, native Hawaiian and other Pacific islander 0.native Hawaiian and other Pacific islander 0.2% 2%

Religions: Protestant 52%, Roman Catholic 2Religions: Protestant 52%, Roman Catholic 24%, Mormon 2%, Jewish 1%, Muslim 1%, ot4%, Mormon 2%, Jewish 1%, Muslim 1%, other 10%, none 10% her 10%, none 10%

Languages: English 82.1%, Spanish 10.7%, otLanguages: English 82.1%, Spanish 10.7%, other Indo-European 3.8%, Asian and Pacific iher Indo-European 3.8%, Asian and Pacific island 2.7%, other 0.7% sland 2.7%, other 0.7%

COUNTRY PROFILE – COUNTRY PROFILE – GEOGRAPHYGEOGRAPHY

COUNTRY PROFILE – COUNTRY PROFILE – POLITICSPOLITICS

The President of the United States is both The President of the United States is both head of state and head of government head of state and head of government

A two-party legislative: Senate and House A two-party legislative: Senate and House of Representativesof Representatives

The Supreme Court balancing the rights oThe Supreme Court balancing the rights of each f each

Federal court system is based on English cFederal court system is based on English common law ommon law

Each state has its own unique legal system,Each state has its own unique legal system, based on English common law based on English common law

COUNTRY PROFILE – COUNTRY PROFILE – ECONOMYECONOMY

GDP $13.3 trillion (September 2006)GDP $13.3 trillion (September 2006) Annual GDP Growth 3.5% (2006)Annual GDP Growth 3.5% (2006) Inflation Rate 3.4% (September 2006)Inflation Rate 3.4% (September 2006) Labor force 151 million (includes unemLabor force 151 million (includes unem

ployed) September 2006ployed) September 2006 Leading industrial power in the world, Leading industrial power in the world,

highly diversified and technologically ahighly diversified and technologically advanceddvanced

      

      

      

    

    

    

    

COUNTRY PROFILE – COUNTRY PROFILE – ECONOMYECONOMY

The USA achieves 30% of their external tradThe USA achieves 30% of their external trade through NAFTA countries AND 20% througe through NAFTA countries AND 20% through the European Union h the European Union

USA's top three export partners are: Canada USA's top three export partners are: Canada 23.4%, Mexico 13.3% and Japan 6.1% 23.4%, Mexico 13.3% and Japan 6.1%

Its top three import partners are: Canada 16.Its top three import partners are: Canada 16.9%, China 15% and Mexico 10%. 9%, China 15% and Mexico 10%.

International International OrganizationsOrganizations

Inter-American Development Bank (IADB)Inter-American Development Bank (IADB) The European Bank for Reconstruction and Development The European Bank for Reconstruction and Development

(EBRD)(EBRD) The Group of 8 (G-8) The Group of 8 (G-8) The International Labor Organization (ILO) The International Labor Organization (ILO) The International Monetary Fund (IMF)The International Monetary Fund (IMF) The North Atlantic Treaty Organization (NATO)The North Atlantic Treaty Organization (NATO) The North American Free Trade Agreement (NAFTA)The North American Free Trade Agreement (NAFTA) The Organization for the Prohibition of Chemical Weapons The Organization for the Prohibition of Chemical Weapons

(OPCW)(OPCW) The Organization for Economic Cooperation and DevelopmThe Organization for Economic Cooperation and Developm

ent ent The United Nations (UN), The United Nations (UN), The World Health Organization (WHO) The World Health Organization (WHO) The World Trade Organization (WTO). The World Trade Organization (WTO).

Global Rankings (2006)Global Rankings (2006)

The United States ranks 8 in the HumaThe United States ranks 8 in the Human development index n development index

20 in the corruption index20 in the corruption index

The 6th place for the global competitivThe 6th place for the global competitiveness index with a score of 5.61 after Sieness index with a score of 5.61 after Singapore (5.63) ngapore (5.63)

The U.S. Position at The U.S. Position at Doha RoundDoha Round

Background Background The WTO - principal international organization governThe WTO - principal international organization governing world trade. ing world trade.

It has 150 members, over 95% of world trade. (last meIt has 150 members, over 95% of world trade. (last member - Vietnam, January 11, 2007)mber - Vietnam, January 11, 2007)

It was established in 1995 as a successor of GATT. It was established in 1995 as a successor of GATT.

The US was an original signatory to the GATT and a leaThe US was an original signatory to the GATT and a leading proponent of the GATT’s free-market principles. ding proponent of the GATT’s free-market principles.

Decisions in the WTO are by consensus, but US has a hDecisions in the WTO are by consensus, but US has a highly influential role in the WTO as the largest trader iighly influential role in the WTO as the largest trader in the world.n the world.

US TRADE POLICYUS TRADE POLICY GOALSGOALS

Expand open market approaches to trade; Expand open market approaches to trade;

Expand the scope of multilateral trade regimes and deExpand the scope of multilateral trade regimes and development of international rules and standards; velopment of international rules and standards;

Enforce rules and agreements to reduce and eliminatEnforce rules and agreements to reduce and eliminate foreign trade barriers, increase transparency, and ste foreign trade barriers, increase transparency, and strengthen the rule of law; rengthen the rule of law;

Combat foreign competitive practices that impede U.Combat foreign competitive practices that impede U.S. access to markets in areas such as standards, barrieS. access to markets in areas such as standards, barriers related to animal or plant health, tied foreign aid, ars related to animal or plant health, tied foreign aid, and corruption; nd corruption;

US TRADE POLICY GOALSUS TRADE POLICY GOALS Expand business opportunities for U.S. agricExpand business opportunities for U.S. agric

ultural producers and processors; ultural producers and processors;

Promote U.S. trade interests within the WTO Promote U.S. trade interests within the WTO and regional trade organizationsand regional trade organizations

Promote bilateral trade and resolve specific iPromote bilateral trade and resolve specific issues that impede such trade; ssues that impede such trade;

Facilitate U.S. trade policy developmentFacilitate U.S. trade policy development

US Participation in the US Participation in the WTOWTO

US is one of the key participants in all areas of US is one of the key participants in all areas of WTO activity, including the launch of Doha WTO activity, including the launch of Doha Round in November 2001.Round in November 2001.

The Doha Round aims to continue the liberalization The Doha Round aims to continue the liberalization of global trade with the purpose of increasing econoof global trade with the purpose of increasing economic growth in the developing world. mic growth in the developing world.

The most contentious issues :The most contentious issues : agricultural subsidiesagricultural subsidies tariffs on non-agricultural productstariffs on non-agricultural products intellectual property protectionintellectual property protection the reform of the practice of anti-dumpingthe reform of the practice of anti-dumping

STATE OF STATE OF DISCUSSIONSDISCUSSIONS

In 2006, talks have stalled between the developed nations In 2006, talks have stalled between the developed nations and the major developing countries. and the major developing countries.

The Doha Round will be successful if reciprocal concessions arThe Doha Round will be successful if reciprocal concessions are offered and accepted by all members. e offered and accepted by all members.

If the developed world fails to address agricultural subsidies in If the developed world fails to address agricultural subsidies in a way that satisfies the developing world, the Doha Round will a way that satisfies the developing world, the Doha Round will fail.fail.

If the developing world does not make concessions on increasiIf the developing world does not make concessions on increasing access to its markets, then the Doha Round will fail.ng access to its markets, then the Doha Round will fail.

The success of the Doha Round should be an integral part of U.The success of the Doha Round should be an integral part of U.S. efforts to improve economic growth around the world, and S. efforts to improve economic growth around the world, and also to reduce poverty, fight terrorism, and stem the spread of also to reduce poverty, fight terrorism, and stem the spread of HIV/AIDS.HIV/AIDS.

The Major Issues at Doha The Major Issues at Doha RoundRound

The most contentious issues :The most contentious issues : agricultural subsidiesagricultural subsidies tariffs on non-agricultural products tariffs on non-agricultural products

(NAMA)(NAMA) intellectual property protection (TRIintellectual property protection (TRI

PS)PS) the reform of the practice of anti-duthe reform of the practice of anti-du

mpingmping

Agricultural SubsidiesAgricultural Subsidies Current export subsidies and domestic support for agriculturaCurrent export subsidies and domestic support for agricultura

l goods mainly in U.S. and EU, keep world agricultural prices l goods mainly in U.S. and EU, keep world agricultural prices low, preventing the developing world to compete on the worllow, preventing the developing world to compete on the world market. d market.

Reducing these subsidies will help developing countries gain aReducing these subsidies will help developing countries gain access to the world market and sell their goods at higher prices, ccess to the world market and sell their goods at higher prices, resulting in an increase of their economic well – being. resulting in an increase of their economic well – being.

Many developing countries have a comparative advantage Many developing countries have a comparative advantage in delivering farm goods to market, and seek a sharp in delivering farm goods to market, and seek a sharp reduction in rich-country trade barriers on agricultural reduction in rich-country trade barriers on agricultural goods.goods.

As part of a grand bargain, rich countries want to increase As part of a grand bargain, rich countries want to increase their access to non-agricultural manufacturing and service their access to non-agricultural manufacturing and service sectors in robust developing countries,sectors in robust developing countries, especially to especially to capitalize on their strong financial, transportation and capitalize on their strong financial, transportation and telecommunications services.telecommunications services.

U.S. Proposals in Global U.S. Proposals in Global Agriculture TradeAgriculture Trade

Stage 1Stage 1:: Substantial reductions of trade-distorting suSubstantial reductions of trade-distorting su

pport measures and tariffs, along with the elipport measures and tariffs, along with the elimination of export subsidies, in over a five ymination of export subsidies, in over a five year period. ear period.

Stage 2Stage 2:: An additional five year period that delivers tAn additional five year period that delivers t

he elimination of remaining trade-distorting he elimination of remaining trade-distorting subsidies and tariffs in agriculture subsidies and tariffs in agriculture

U.S. Position in Global AgricultU.S. Position in Global Agriculture Tradeure Trade

The United States offered to cut its agricultural The United States offered to cut its agricultural subsidies by more than 50% (on average), but subsidies by more than 50% (on average), but conditioned the offer on major market-access from the conditioned the offer on major market-access from the EU and G-20.EU and G-20.

EU offered to cut its tariffs by an average of 40%, but it EU offered to cut its tariffs by an average of 40%, but it also wants to identify up to 160 of its agricultural also wants to identify up to 160 of its agricultural products as “sensitive” and preserve tariff protections products as “sensitive” and preserve tariff protections for them. for them.

The United States was under pressure from the EU and the The United States was under pressure from the EU and the G-20 to improve its subsidy reduction offer (G-20 to improve its subsidy reduction offer (from $22bn from $22bn to $17bn).to $17bn).

EU countries must make cuts in their agricultural EU countries must make cuts in their agricultural tariffs in the vicinity of 54%.tariffs in the vicinity of 54%.

U.S. Position in Global U.S. Position in Global Agriculture TradeAgriculture Trade

The United States insisted that it would not improve its offer on domeThe United States insisted that it would not improve its offer on domestic subsidy reduction unless the EU improves considerably its markestic subsidy reduction unless the EU improves considerably its market access offer and the G-20 countries show a willingness to open their t access offer and the G-20 countries show a willingness to open their markets both to agricultural and industrial products and services as markets both to agricultural and industrial products and services as well.well.

But an open embrace from the developing world is highly unlikely But an open embrace from the developing world is highly unlikely if the United States refuses to give up its significant farm if the United States refuses to give up its significant farm subsidiessubsidies

Another difficulty is “geographical indications,” or the protection oAnother difficulty is “geographical indications,” or the protection of product names that reflect the original location of the product. (Ex. f product names that reflect the original location of the product. (Ex. Bordeaux wine).Bordeaux wine).

The United States refuses to negotiate a mandatory list, but will accepThe United States refuses to negotiate a mandatory list, but will accept a voluntary list with no enforcement power. t a voluntary list with no enforcement power.

The EU says it will not accept an agriculture agreement without a geoThe EU says it will not accept an agriculture agreement without a geographical registry.graphical registry.

Non-Agricultural Market Non-Agricultural Market Access (NAMA )Access (NAMA )

The negotiations cover all goods not included in the The negotiations cover all goods not included in the Agreement on Agriculture. Agreement on Agriculture.

The products are primarily industrial although WTO The products are primarily industrial although WTO members are also negotiating on natural resources, members are also negotiating on natural resources, including fisheries, forests, gems and minerals. including fisheries, forests, gems and minerals.

NegotiationsNegotiations

The Swiss formulaThe Swiss formula Special and differential treatment for developing countriesSpecial and differential treatment for developing countries Reducing the incidence of non-tariff barriers, such as import Reducing the incidence of non-tariff barriers, such as import

licensing and quotaslicensing and quotas The sectoral elimination of tariffs for specific groups The sectoral elimination of tariffs for specific groups

Non-Agricultural Market AcceNon-Agricultural Market Access (NAMA )ss (NAMA )

The Swiss formula will be used to reduce tariffs:The Swiss formula will be used to reduce tariffs:

Whereby T1 is the new bound tariff, To the initial bound rate and Whereby T1 is the new bound tariff, To the initial bound rate and aa, a coefficient to be determined., a coefficient to be determined.

The coefficients for developed Members fall generally within the The coefficients for developed Members fall generally within the range of 5 to 10, and for developing Members within the range of range of 5 to 10, and for developing Members within the range of 15 to 30. 15 to 30.

Pakistan formally presented a simple Swiss formula with coefficiPakistan formally presented a simple Swiss formula with coefficients of 6 for developed countries and 30 for developing countries. ents of 6 for developed countries and 30 for developing countries.

US complained that 30 was too high, and would not cut developinUS complained that 30 was too high, and would not cut developing country tariffs steeply enough. g country tariffs steeply enough.

Non-Agricultural Market AcceNon-Agricultural Market Access (NAMA )ss (NAMA )

Special and Differential treatment for Special and Differential treatment for developing countriesdeveloping countries The possibility for developing countries to exempt The possibility for developing countries to exempt

a small number of tariff lines from reductions, ora small number of tariff lines from reductions, or to make less than formula cuts on a higher numbeto make less than formula cuts on a higher numbe

r of products.r of products. Both the United States and the EU have favoreBoth the United States and the EU have favore

d using sectoral tariff elimination as an alterad using sectoral tariff elimination as an alterative modality for the NAMA negotiations. tive modality for the NAMA negotiations.

Negotiations have stalled on which products tNegotiations have stalled on which products to cover and the extent of participation. o cover and the extent of participation.

Intellectual Property Intellectual Property Rights ProtectionRights Protection

Protecting the copyrights and patents of U.S. companies has beeProtecting the copyrights and patents of U.S. companies has been an important component of previous U.S. stances on IPR and cn an important component of previous U.S. stances on IPR and continues to be. ontinues to be.

In the case of patented medicines and treatments particularly HIIn the case of patented medicines and treatments particularly HIV/AIDS, developing countries often are too poor to afford these pV/AIDS, developing countries often are too poor to afford these patented products and/or lack the capacity to produce similar proatented products and/or lack the capacity to produce similar products domestically. ducts domestically.

Governments can grant compulsory licenses to sell the patented Governments can grant compulsory licenses to sell the patented products at far lower cost. products at far lower cost.

These compulsory licenses harm the financial welfare of the phaThese compulsory licenses harm the financial welfare of the pharmaceutical companies, a strong presence in the U.S. rmaceutical companies, a strong presence in the U.S.

As long as it is monitored effectively to prevent the re - exportatiAs long as it is monitored effectively to prevent the re - exportation of these products by third parties:on of these products by third parties: effective means of protecting U.S. pharmaceutical companies from peffective means of protecting U.S. pharmaceutical companies from p

iracy iracy at the same time providing medical treatment to those who desperatat the same time providing medical treatment to those who desperat

ely need it.ely need it.

Reform of WTO Rules on Reform of WTO Rules on Anti-dumpingAnti-dumping

ObjectiveObjective - “clarifying and improving di - “clarifying and improving disciplines” sciplines”

The United States has primarily been on tThe United States has primarily been on the defensive in the rules talks. he defensive in the rules talks.

Many countries have attacked the use of aMany countries have attacked the use of antidumping actions by the United States. ntidumping actions by the United States.

However, many developing countries are However, many developing countries are now using antidumping actions themselvnow using antidumping actions themselves. es.

Reform of WTO Rules on Anti-Reform of WTO Rules on Anti-dumpingdumping

The leading proponents of “clarifying and improving diThe leading proponents of “clarifying and improving disciplines” have been a group of 15 developed and develsciplines” have been a group of 15 developed and developing countries known as the “Friends of Antidumpinoping countries known as the “Friends of Antidumping”. g”.

In essence their proposals would reduce the incidence aIn essence their proposals would reduce the incidence and amount of duties .nd amount of duties .

Many of their proposals would require a change in U.S. lMany of their proposals would require a change in U.S. laws. aws.

In the U.S., imposing anti-dumping duties is a favored aIn the U.S., imposing anti-dumping duties is a favored and frequently used trade remedy for domestic import-cond frequently used trade remedy for domestic import-competing interests.mpeting interests.

The United States has submitted proposals on subsidies, The United States has submitted proposals on subsidies, such as expanding a list of prohibited subsidies and impsuch as expanding a list of prohibited subsidies and imposing disciplines on support to sales of natural resources.osing disciplines on support to sales of natural resources.

Other IssuesOther Issues U.S. Seeks to Expand Trade in U.S. Seeks to Expand Trade in

ServicesServices Liberalization across a broad range of service Liberalization across a broad range of service

sectors, with a particular focus on key sectors, with a particular focus on key infrastructure services.infrastructure services.

These key services include, but are not These key services include, but are not limited to, financial, telecommunications, limited to, financial, telecommunications, computer, express delivery, distribution and computer, express delivery, distribution and energy services. energy services.

U.S. Seeks to Expand Trade in SeU.S. Seeks to Expand Trade in Servicesrvices

Currently, the United States covers more than 60 percent of services sectors while WTO members average 35 percent coverage.

Other IssuesOther Issues Dispute SettlementDispute Settlement The United States favored additional reThe United States favored additional re

forms that were not a part of the initial forms that were not a part of the initial text. text. For example, the United States has called For example, the United States has called

for open public access to proceedings. for open public access to proceedings. EnvironmentEnvironment

The United States is pushing for rules on fThe United States is pushing for rules on fisheries subsidies, and tariff reductions oisheries subsidies, and tariff reductions on environmental productsn environmental products..

Beyond Trade: Additional U.S. Beyond Trade: Additional U.S. Assistance to Developing CounAssistance to Developing Coun

triestries The United States nearly doubled its official devThe United States nearly doubled its official dev

elopment assistance to the world’s poor from $elopment assistance to the world’s poor from $10 billion in 2000 to $19 billion in 2004. 10 billion in 2000 to $19 billion in 2004.

U.S. citizens give billions every year through chU.S. citizens give billions every year through charitable donations, and U.S. NGOs account for taritable donations, and U.S. NGOs account for the vast majority (62%) of all private institutional he vast majority (62%) of all private institutional grants from OECD countries. grants from OECD countries.

Debt relief is another area where the U.S. has taDebt relief is another area where the U.S. has taken the lead. The G-8 countries agreed to cancel ken the lead. The G-8 countries agreed to cancel 100% of the bilateral and multilateral debt for q100% of the bilateral and multilateral debt for qualifying Heavily Indebted Poor Countries. ualifying Heavily Indebted Poor Countries.

U.S Strategy at DohaU.S Strategy at Doha U.S. has a multilateral strategy to achieve its goals at the Doha RU.S. has a multilateral strategy to achieve its goals at the Doha R

ound.ound.

Well in advance of the official meetings, the U.S. needs to reach Well in advance of the official meetings, the U.S. needs to reach out toout to developed (G8) countries,developed (G8) countries, mid-level (G20) countries, mid-level (G20) countries, and the least-developed (G90) countries and the least-developed (G90) countries

in order toin order to learn what each bloc hopes to achieve in the round, learn what each bloc hopes to achieve in the round, build trust between the trade representatives of the U.S. and the otbuild trust between the trade representatives of the U.S. and the ot

her nations,her nations, gain support for the U.S. position. gain support for the U.S. position.

This engagement with other nations prior to meetings will:This engagement with other nations prior to meetings will: reduce uncertainty about other nations’ intentions reduce uncertainty about other nations’ intentions decrease the likelihood of a setback decrease the likelihood of a setback

U.S Strategy at DohaU.S Strategy at Doha If the U.S. successfully at the Doha Round:If the U.S. successfully at the Doha Round:

the international community’s confidence in the the international community’s confidence in the U.S. as a multilateral actor will be increasedU.S. as a multilateral actor will be increased

some of the soft power the U.S. recently lost due to some of the soft power the U.S. recently lost due to the conflict in Iraq will be restored. the conflict in Iraq will be restored.

Any agreement that is reached at the Doha RoAny agreement that is reached at the Doha Round must be ratified by the Senate.und must be ratified by the Senate.

It is imperative that the executive branch agenIt is imperative that the executive branch agencies work closely with their colleagues on the cies work closely with their colleagues on the Hill to ensure Senate approval of the agreemeHill to ensure Senate approval of the agreement. nt.

OPTIONS FOR U.S. POSITIONS OPTIONS FOR U.S. POSITIONS AT DOHA ROUNDAT DOHA ROUND

Option 1:Option 1: Reduce Agricultural Subsidies and Tariffs on Non-Agricultural GooReduce Agricultural Subsidies and Tariffs on Non-Agricultural Goo

dsds Maintain Status Quo on IPR and Anti-dumping.Maintain Status Quo on IPR and Anti-dumping.

PROSPROS:: Addresses most immediate concern of developing world (subsidies)Addresses most immediate concern of developing world (subsidies) Opens foreign markets to U.S. exportsOpens foreign markets to U.S. exports Reciprocity leads to economic gains for both developing and develoReciprocity leads to economic gains for both developing and develo

ped nationsped nations Would remove subsidies from blocking progress on FTAA negotiatiWould remove subsidies from blocking progress on FTAA negotiati

onsons Domestic import-competing industries want to maintain anti-dumpDomestic import-competing industries want to maintain anti-dump

ing as a tooling as a tool CONSCONS::

Domestic agricultural interests will lose some economic benefitsDomestic agricultural interests will lose some economic benefits

OPTIONS FOR U.S. POSITIONS OPTIONS FOR U.S. POSITIONS AT DOHA ROUNDAT DOHA ROUND

Option 2Option 2:: Reduce Agricultural Subsidies and Tariffs on Non-AgriculturReduce Agricultural Subsidies and Tariffs on Non-Agricultur

al Goods;al Goods; Improve Monitoring of Compulsory Licenses to Protect IPR;Improve Monitoring of Compulsory Licenses to Protect IPR; Maintain Status Quo for AntidumpingMaintain Status Quo for Antidumping

PROS:PROS: Same as Option 1Same as Option 1 Improves access to patented medical treatment in the develImproves access to patented medical treatment in the devel

oping worldoping world CONS:CONS:

Domestic agricultural interests and pharmaceutical companDomestic agricultural interests and pharmaceutical companies will lose some economic benefitsies will lose some economic benefits

OPTIONS FOR U.S. POSITIONS OPTIONS FOR U.S. POSITIONS AT DOHA ROUNDAT DOHA ROUND

Option 3Option 3:: Reduce Agricultural Subsidies and Tariffs on Industrial GoReduce Agricultural Subsidies and Tariffs on Industrial Go

ods; ods; Improve Monitoring of Compulsory Licenses to Protect IPR;Improve Monitoring of Compulsory Licenses to Protect IPR; Reform Anti-dumping RulesReform Anti-dumping Rules

PROS:PROS: Same as Option 2Same as Option 2

CONS:CONS: Domestic import-competing industries will not allow the SDomestic import-competing industries will not allow the S

enate to pass an agreement with anti-dumping reformenate to pass an agreement with anti-dumping reform

OPTIONS FOR U.S. POSITIONS OPTIONS FOR U.S. POSITIONS AT DOHA ROUNDAT DOHA ROUND

Option 4Option 4:: Maintain Status Quo on All IssuesMaintain Status Quo on All Issues

PROSPROS:: Domestic agricultural interests will continue to bDomestic agricultural interests will continue to b

enefit from subsidiesenefit from subsidies CONS:CONS:

Doha Round will failDoha Round will fail Inefficiencies in developed world will persistInefficiencies in developed world will persist Developing world will continue to be unable to cDeveloping world will continue to be unable to c

ompete on the world market.ompete on the world market.

ConclusionsConclusions It is imperative that the position of the U.S. at the It is imperative that the position of the U.S. at the

negotiations is one that can be passed in the Senanegotiations is one that can be passed in the Senatete

It must also be one that can be accepted by the inIt must also be one that can be accepted by the international community in multilateral negotiatioternational community in multilateral negotiations. ns.

The The Option 2Option 2 is the most likely to be accepted on is the most likely to be accepted on both the international and domestic level. both the international and domestic level.

It is also the best compromise between the desireIt is also the best compromise between the desires of the developing and developed nations of the s of the developing and developed nations of the world.world.

ConclusionsConclusions It all depends upon the US – how far it would travel on cIt all depends upon the US – how far it would travel on c

utting domestic farm subsidies. utting domestic farm subsidies. At present, the US is ready to freeze the total subsidy paAt present, the US is ready to freeze the total subsidy pa

yment at US$19bn, which is marginally lower than US$2yment at US$19bn, which is marginally lower than US$21bn given in 2005. 1bn given in 2005.

Peter Mandelson, Europe’s trade commissioner, believPeter Mandelson, Europe’s trade commissioner, believes that the way to unblock the round would be for the Ues that the way to unblock the round would be for the US to put a ceiling of US$15bn on subsidies, compared to tS to put a ceiling of US$15bn on subsidies, compared to the current spending of US$19bn. he current spending of US$19bn.

The developing countries– G-20 and G-33 – however, havThe developing countries– G-20 and G-33 – however, have demanded 75 percent cut in domestic subsidies by the e demanded 75 percent cut in domestic subsidies by the US. US.

To satisfy this demand, the US needs to prune down its dTo satisfy this demand, the US needs to prune down its domestic subsidies to around US$5bn.omestic subsidies to around US$5bn.

ConclusionsConclusions The first three months of 2007 are extrThe first three months of 2007 are extr

emely crucial for the Doha round.emely crucial for the Doha round. First, the US is likely to reveal their caFirst, the US is likely to reveal their ca

rds on what they have in mind about trds on what they have in mind about the upcoming review of US Farm Bill. he upcoming review of US Farm Bill.

Secondly, key WTO negotiators have alSecondly, key WTO negotiators have already entered into a higher gear of talkready entered into a higher gear of talks at Geneva.s at Geneva.

THANK YOU!THANK YOU!