Doha Talks Break Up Without Agreement

By Joel Newman

The Doha Round of global trade talks, now in its seventh year, broke up without an agreement on July 29. Sharp disagreements between the U.S., India and China regarding access to developing countries’ agricultural markets could not be resolved. This also is a set-back for many countries that need increased trade in food to help ease the strain of soaring food costs.

Both the U.S. and European Union had agreed to further cuts in farm subsidy programs in a verbal compromise proposal with China, India and Brazil, which included reciprocal tariff cuts in developing countries’ farm and industrial sectors. But by July 28, both China and India backed out of the agreement. They, in fact, proposed implementing tariffs to protect sugar, cotton and rice that are higher than the limits in place today.

This makes the bilateral free trade agreements, negotiated with individual countries, even more important for the U.S. Bilateral agreements have been negotiated with Colombia, South Korea and Panama, but are being held up in Congress by the Democratic majority. Potential further Doha talks will not take place until a new administration is in place.