|
HONG KONG OBJECTIVE
Negotiators must pave the way for the final negotiations
by reaching an agreement on timetables and formulas
that reduce all tariffs and on a framework for elimination
of nontariff barriers.
|
Continued Reduction in Tariff and Non-Tariff Barriers
for Non-Agricultural Goods Will Level the Playing Field for
American Exporters and Improve Economic Growth in Developing
Countries.
Tariff reductions on industrial goods have been the cornerstone
of previous rounds of multilateral trade negotiations. The
success of those previous negotiations has produced substantial
growth in worldwide trade, increased income around the world,
and given consumers access to greater variety of more affordable
goods. However, much work remains to be done to achieve full
benefits from liberalized trade in industrial goods.
Successful non-agricultural market access ("NAMA") negotiations
are critical to American businesses and workers. The U.S.
economy is already very open to imports, but the rest of the
world is not, putting U.S. exports at a disadvantage. Average
U.S. tariffs on industrial goods are 4 percent, while tariffs
around the world are much higher. Tariffs in important developing
country markets average 39 percent. The Doha Round should
reduce foreign tariff and non-tariff barriers to American
exports and expand markets for goods produced by American
workers.
Developing countries also stand to gain significantly from
improvements in non-agricultural market access ("NAMA").
- The World Bank estimates that manufactured goods now
constitute 80 percent of the total exports of low-income
countries. According to the IMF, developing countries
would gain about equally from liberalization of manufacturing
and agriculture.
- Gains to developing countries would arise from liberalization
by their fellow developing countries. South-South trade
is still subject to relatively high tariffs -- 70 percent
of the tariff burden faced by developing countries is
imposed by other developing countries.
Despite reductions in the previous rounds of multilateral
negotiations the remaining tariffs and their proliferation
of non-tariff barriers represent a significant cost to businesses
who must pay more for inputs and consumers who must pay more
for clothing, shoes, household goods, automobiles and other
products. Economic studies predict an increase in global economic
welfare of $267.3 billion from just a one-third reduction
in tariffs on industrial goods.
WTO members need to raise their sights in substantially reducing
tariff and non-tariff barriers in all industrial products
and should support zero duties in these sectors that want
their tariffs consistently eliminated.
|
