NAMA
Why developing countries need tariffs: how WTO NAMA negotiations could dent developing countries' right to a future
Arguments for holding back on NAMa negotiations
Authors:
H. Chang
Publisher:
South Centre, 2005
This report argues, in the light of NAMA negotiations, that if the developed countries force the developing countries to massively cut (or even altogether eliminate) industrial tariffs on a line-by-line basis, the implications for industrial development and economic growth in those countries will be disastrous. A central argument is that it is extremely difficult, if not totally impossible, for technologically backward countries to develop without trade protection (of which tariffs are the main element) and subsidies.
The main arguments are:
- while some trade liberalization may be necessary and beneficial, infant industry protection is vital in the early stages, and trade should be liberalised gradually, in line with the economy’s ability to upgrade its capabilities
- premature liberalisation in Sub-Saharan Africa has been devastating; for example, in Senegal, following trade liberalization starting in 1985, a third of all manufacturing jobs were lost
- if they are to fulfil the developmental promises made in Doha, the powerful players in the WTO must ensure that any NAMA agreement gives developing countries the largest possible policy space so that that they can work out what is good for them and find their own ways to achieve it
- therefore, there should be an immediate suspension of the NAMA negotiations until a new and prodevelopment text can be agreed
