Question: Why is the Doha Round of Trade Talks So Important?
Answer:
- The Doha round of trade talks would have reduced subsidies for developed countries’ agricultural industries, thus allowing developing countries to export a product that they are already good at producing - food. In return, the developing countries would open up their market to services, particularly banking, which would provide new markets to the developed countries’ service industries, and help modernize these markets for the developing countries.
- Unfortunately, agribusiness lobbies in the U.S. and Europe put political pressure on their legislatures, and effectively ended this round of negotiations. The result has been an increase of bilateral agreements. Whether this is good for developing countries remains to be seen.
WTO FAQ
- What is the World Trade Organization?
- Why is WTO Membership So Important?
- How Does a Country Become a WTO Member?
- How Does the WTO Resolve Trade Disputes?
- What is the Doha Round of Trade Talks?
- Why is the Doha Round of Trade Talks So Important?
