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International Monetary Fund

as well as analytical support. 3. Implementation of Doha Round agreements may also give rise to temporary balance of payments shortfalls . Fears over external imbalances, as a result of terms of trade changes, the liberalization of imports or—especially—more intense competition in export markets due to preference erosion, have led a number of developing countries to question the wisdom of subscribing to an ambitious Doha Round. While the Fund has provided assurances of support within its existing policies and instruments, several members have called for a more

International Monetary Fund
At their 2005 Spring meetings, the Development Committee and IMFC called on the Bank and Fund to work with others to develop more detailed proposals, for consideration at the Annual Meetings, to help developing countries adjust to and take advantage of the Doha Round. In response, Bank and Fund staff prepared a paper on “The Doha Development Agenda and Aid for Trade” following a consultation process with donors and least developed countries (LDCs) during the summer. This is a Supplement to the main paper.
International Monetary Fund. External Relations Dept.

-related shocks? Assuming a fairly ambitious Doha Round agreement leading to a 40 percent reduction in average preference margins, IMF research suggests that about two dozen countries could experience more than a 2 percent decrease in their average export prices over the period in which the agreement will be implemented. Among the hardest hit countries would be Mauritius, Malawi, and several Caribbean countries.A slightly smaller group of countries might be vulnerable to a food import price shock. It is difficult to predict the impact on individual countries from the imminent

John Nash and Donald Mitchell

countries’ own policies and in negotiations in the World Trade Organization’s (WTO) Doha Round trade talks. Global trade liberalization is only one weapon in the arsenal to fight hunger, but it can make an important contribution by delivering cheaper food in protectionist countries and boosting the global economy, helping to lift millions out of poverty. This is one reason why it is essential that the Doha Round agreement lower barriers to trade in food products in rich and poor countries. This article examines how trade policy can be harnessed to help reduce poverty

International Monetary Fund

developing countries in addressing the potential adjustment costs of more open international trade. Carrying this work forward would involve a response at three levels: Analysis and surveillance: With regard to the implications of a Doha Round agreement for macroeconomic and financial stability, the concerns of developing country members of the WTO have focused on (1) the fiscal impact of tariff reductions, (2) the impact of preference erosion in major export markets, (3) possible changes in food terms of trade, and (4) the demands of financial services trade

International Monetary Fund

structural reforms are highly desirable, especially to support economic restructuring and keep the labor force attached to the labor market. All agreed on the importance of countering protectionist pressures from the crisis and concluding an ambitious Doha Round agreement to bring about new trade opportunities. Front Matter Page INTERNATIONAL MONETARY FUND EXTERNAL RELATIONS DEPARTMENTS Public Information Notice (PIN) No. 09/95 FOR IMMEDIATE RELEASE July 30, 2009 International Monetary Fund 700 19 th Street, NW Washington, D. C. 20431 USA

International Monetary Fund

and ambitious Doha Round agreement and seek provisions in Economic Partnership Agreements that limit trade diversion and work effectively on a regional level. Public Information Notices (PINs) form part of the IMF’s efforts to promote transparency of the IMF’s views and analysis of economic developments and policies. With the consent of the country (or countries) concerned, PINs are issued after Executive Board discussions of Article IV consultations with member countries, of its surveillance of developments at the regional level, of post-program monitoring

International Monetary Fund

leadership role in encouraging its EPA partners to lower their MFN tariffs and work toward an ambitious Doha Round agreement (Annex II). Agricultural reform . Recent steps on eligibility criteria should facilitate a shift in farm support from trade barriers to direct income assistance. Reforms of agricultural cooperatives and land use could support moves to allow nationwide entry of joint-stock companies. Box 4. Japan’s Emerging Economic Dualities Globalization, technological change, and an aging population have contributed to widening economic disparities