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"The Doha Round of talks is supposed to correct the World Trade Organization (WTO) rules that are biased against developing countries --At least, that's what the original idea was. " So what happened to the Doha Round? Why didn't it run well?
The Doha Round's original objective is to lower trade barriers around the world, which will help facilitate the increase of global trade. A study by the University of Michigan found that if all trade barriers in agriculture, services, and manufactures were reduced by 33% as a result of the Doha Development Agenda, there would be an increase in global welfare of $574.0 billion. However in 2008, talks have stalled over a divide on major issues, such as agriculture, industrial tariffs and non-tariff barriers, services, and trade remedies.
This seemed unreasonable, a trade negotiation which aimed to liberalize the barriers and benefit both sides had been stuck, why did someone do this? Let's focus on the real benefits. A 2008 study by World Bank Lead Economist Kym Anderson found that global income could increase by more than $3000 billion per year, $2500 billion of which would go to the developing world. From this man's report, we can understand that the benefit is not the most important, the profit distribution is what the developed countries really care about. This is just like a Game with Threat, the incumbent will threaten the incomer for a lose-lose outcome instead of the slight profit increase bring by the incomer. So the developed countries seem to be irrational on the Doha Round but they are just defending their hegemony throne. If they can't get the bigger part of the welfare, the Doha Round won't take another further step.
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