The World Trade Organisation (WTO) was formed in 1995 with the aim of promoting international trade. It has 153 member-countries, representing 95% of world trade. It regulates trade between members and provides a platform for negotiating trade agreements, such as the Doha Round. The WTO also resolves trade disputes between countries, and its decisions are binding.

What is the Doha Development Agenda?

The WTO’s Doha Development Agenda or Doha Round aims to further reduce barriers to trade (like import duties) in the agriculture, manufacturing and services sectors. The talks began in November 2001, making them the longest trade negotiations ever without an agreement (107 months). The previous round of negotiations (the Uruguay round) took 87 months.

Why call it Doha Development Agenda?

After the Uruguay round, the decision to begin the next round of negotiations was taken in Doha, Qatar. The term ‘development’ was included in the title at the insistence of developing countries, which wanted their interests to be captured.

Why have the talks stalled?

Differences have risen on two fronts:agricultural subsidies in developed countries and higher tariffs on manufactured products in developing countries. (The latter is called Non Agriculture Market Access or NAMA in WTO parlance.)

Developing countries are refusing to open up their markets unless countries like the US drastically reduce their farm subsidies. On their part, developed countries are asking for a steep reduction in import duties on industrial products.

What is a special safeguard mechanism?

This is an area of difference between India and the US. Under an SSM, developing countries can levy higher tariffs on certain agricultural products if imports surge or prices drop drastically in the domestic market. The US wants a lower threshold, while developing nations want a higher one.

What other issues hinder an agreement?

While developed nations are keen that countries like India open their markets to their companies, developing countries want it to be easier for their workers to perform on-site (called ‘Mode-IV’) services in other countries. India will stand to benefit if Mode-IV services are liberalised. However, the US is not willing to negotiate on immigration-related issues. So, an agreement is unlikely.