What are the major causes of the rise of preferential and regional trade agreements and the coinciding failure of the Doha Development Round DDR multilateral trade negotiations to achieve a ratifiable

There are several major causes that have contributed to the rise of preferential and regional trade agreements and the failure of the Doha Development Round (DDR) multilateral trade negotiations to achieve a ratifiable agreement. These causes can be broadly categorized into political, economic, and structural factors.

1. Political Factors:

• Diverging national interests: Countries have different priorities and interests when it comes to trade liberalization. In multilateral negotiations, finding a consensus among a large number of countries with diverse interests becomes challenging.
• Power imbalances: Developed countries often dominate the multilateral negotiations, leading to a lack of inclusivity and representation for developing countries. This power imbalance can hinder progress in negotiations.
• Complexity of decision-making: The multilateral negotiation process is complex and involves numerous countries with varying positions. It becomes difficult to reach a consensus on issues such as agriculture, intellectual property rights, and services.

2. Economic Factors:

• Protectionist pressures: Domestic industries may pressure governments to protect their markets from foreign competition. Preferential trade agreements allow countries to protect their domestic industries while gaining market access in partner countries.
• Regional economic integration: Regional trade agreements are often seen as a stepping stone towards deeper economic integration. Countries may prioritize regional agreements as they offer more immediate and tangible benefits compared to global agreements.
• Sector-specific interests: Some industries may have specific demands that can be better addressed through preferential trade agreements rather than multilateral negotiations. For example, agriculture subsidies are a major concern for many countries, and regional agreements can address these issues more effectively.

3. Structural Factors:

• Negotiation fatigue: The Doha Development Round was launched in 2001, and negotiations have been ongoing for over two decades. The complex and protracted nature of the negotiations has led to negotiation fatigue among countries, making it difficult to reach a consensus.
• Inflexibility of negotiating positions: Countries often have entrenched positions on key issues, making it challenging to find common ground. This inflexibility can lead to a lack of progress in negotiations.
• Proliferation of regional agreements: The increasing number of preferential and regional trade agreements has created a competitive environment, where countries prefer bilateral or regional negotiations to secure favorable terms for their industries.

Overall, the rise of preferential and regional trade agreements can be attributed to a combination of political, economic, and structural factors that have hindered the progress of multilateral negotiations like the Doha Development Round