A new study from the European Commission reveals that the economic benefits arising from successful Doha Development Agenda (DDA) negotiations in the World Trade Organization (WTO) could amount to an increase in world exports of USD359 billion on an annual basis from a deal that secures the liberalization of industrial goods, agriculture, services and from the removal of red tape.
The report examines the deal currently on the table, and is aimed at providing policy makers with a thorough analytical basis for an informed decision on the importance of a successful DDA agreement.
According to the report, the deal on the table is "well balanced" and in terms of economic gains, all regions, developing, emerging and developed countries, would profit from an ambitious Doha deal. This would mean 0.2% of additional economic growth at global level and an extra USD30 billion in GDP for the European Union on an annual basis.
The removal of red tape in trade, so-called trade facilitation (e.g. simplification of customs procedures, transport and trade logistics), is of major importance for a successful Doha Development deal, the report argues. Almost half of the global gains (USD100 billion in world exports) are to be reaped from this part of the agreement it says, and the allocation of gains becomes more favourable to developing countries when trade facilitation is included.
The negotiations on sectoral agreements for chemicals, machinery and electronics goods would further enhance the DDA benefits, the report finds. With these sectoral agreements world exports would increase by an additional USD146 billion, to as much as USD505 billion annually (with yet another USD8 billion if environmental goods are included).
An agreement would also lead to positive effects on tariff revenue for some regions, including Sub-Saharan Africa because reduced red tape would make trade volumes go up even when tariffs are kept at the same level./.