What you need to know about the December WTO summit

December 14, 2005

The developing countries, which have 70% of the world farmers, want Europe and the developed world to cut farm tariffs by more than the 43% they are currently offering. The developing countries want greater access to the developing world's markets.

The U.S. wants developing countries to open their service industries, like express package delivery and insurance, but the developing countries don’t want to open them until developed countries’ farm tariffs are lifted more. In addition, the U.S. also wants Europe to lower farm subsidies. Furthermore, the developed countries have agreed that developing countries can continue to protect their agricultural economies.

What It Means:
If successful, increased free trade between the 148 nation WTO members could increase global economic growth by $400 billion according to the World Bank.

Action Steps:

Nothing right now - just wait and see how it all turns out.

Source:

World Trade Organization, World Bank