Underscores U.S. Efforts to Achieve Ambitious Doha Development Round
Today, the Carnegie Endowment for International Peace released a study which
shows that under full trade liberalization all countries win.
"The scenarios presented are consistent with a view that underlies the U.S.
negotiating approach in the Doha Development Round – economic gains grow as the
degree of trade liberalization increases," said U.S. Trade Representative Rob
Portman. "This is why the United States has been a primary force pushing for a
maximum degree of market opening in these negotiations."
"The study examines scenarios of less than full trade liberalization as well
as full liberalization. In its less than full liberalization scenarios, the
Carnegie study finds some developing countries may suffer net welfare losses,"
Portman added. "One reason welfare benefits are not larger is that gains from
trade liberalization in services are not measured in this study. Also, the use
of a static rather than dynamic model in this study limits the measurement of
net welfare gains because it does not include estimates of the economic growth
effects of trade liberalization."
"Even with these omissions, the report's results support the important point
that the lesser the degree of liberalization by all members, the greater the
possibility that not all ships are raised. We need an ambitious result to
deliver on the promise of Doha, the promise of greater global economic growth
and the alleviation of poverty," Portman said. Tables in the study’s last
technical appendix show that when Carnegie’s model was run with full trade
liberalization, there were no losers, all countries gained. (Pages 98-99)
"The study also highlights three other important areas. First, it notes that
trade is only one policy mechanism among many to achieve economic development
When pro-market and other development policy reforms are in place, developing
countries can take much better advantage of the opportunities offered by freer
trade," Portman said.
"Second, it emphasizes the need to assist developing countries as they adjust
to freer trade. The United States agrees. It is one of the reasons for our
massive investment in trade-related capacity building and why we have committed
to doubling that aid for trade over the next five years," Portman noted.
"Third, in calling for middle-income developing countries to extend greater
access to products from the least developed countries, the study echoes what is
widely understood but too often forgotten. Significantly reducing high trade
barriers in developing countries will increase potential benefits developing
countries derive from the Doha negotiations," Portman concluded.
The Carnegie study examines the static effects of liberalization of trade in
goods. It does not include estimates of the effects of liberalization of trade
in services or of dynamic economic effects resulting from trade liberalization.
The Carnegie study is titled, "Winners and Losers: Impact of the Doha Round on