Benefits of Doha
The Doha declaration, also known as Doha Development Agenda or Doha Development Round can be explained as a trade negotiation under the WTO which works towards lowering trade barriers all over the world as well as facilitating an increase in global trade. This declaration pledged to support developing countries to secure a share in global trade through the improvement of markets and phasing out of export subsidies. The following are benefits of this declaration.
1. Creates new trade markets
By improving the market access of many countries especially in developing countries, it helps avail new trade markets because of the availability of commodity. According to various estimates, there is a lot of money that flows through trade annually. This is important as it boosts the growth of new markets and this has enough benefits for the countries involved.
2. Locked tariffs
Doha’s main aim is to promote trade among many countries with the reduction of tariffs. These tariffs are thereby locked until new declarations are made during trade deals. Therefore seeing as once a tariff is â€œlocked’Â by a particular trade deal, the tariffs can never go up in the future. Doha is therefore like a policy made by an insurance against other partners incase of raised tariff fees.
3. Cheap goods
Doha means lowering of tariffs for the buying and selling of both industrial goods and food. This consequently affects the prices and the results are cheaper food and goods for consumers as well as cheaper inputs for the companies.
4. Economy boost
Doha has a very important purpose in the current economy. It serves to boost the confidence of the global economy which has seen enough financial crisis especially recently. It also provides a clear message on the importance of global cooperation which serves as an example for more difficult negotiations which will take place in the future.
To develop rules and treaties in relation with Doha, large time input and various rounds of investigations are required.