Free and fair trade

The global trading regime is considered to be a key driver of economic growth for countries struggling to attain better global economic status through trade. However, at this crucial time major trading economies like America are adopting protectionist policies which are injurious to the Third World.
The vision for a tariff-free global market had been pursued by Brettonwood countries previously through GATT (General Agreement of Trade and Tariff) and then under the WTO. Unfortunately, these organisations have failed to bring tariffs down to a substantial level, primarily due to non-compliance of key signatories of the Brettonwood agreement.
In 2001, the Doha Round of talks started for trade liberalisation, which has now became a major hurdle for global free trade and tariff reduction because it still remains inconclusive even though one decade has gone. On 21st April 2011, the chairman of the trade negotiation committee lamented that the member had thrown away the solid work done in a long time, the consequences of which would be far-reaching. He therefore, required the members to work together for a consensus decision.
Owing to the inordinate delay in taking a unanimous decision for the reinforcement of multilateral tariff reduction on each commodity under the WTO trading regime, the global economy in the major parts of the world is facing setbacks due to barriers created for the products of the emerging economies. Interestingly, those who were supposed to reinforce a global trade agenda for the reduction of poverty through conversion of the domestic market into one entity have become adversaries to this end. Among the 153 members only the economic giants namely China, America and India are creating hurdles in reaching a final consensus decision. Consequences of such reluctance towards global market liberalisation will be particularly dangerous for developing economies with greater reliance on raw or semi-processed agro products. Protectionist policies of these big players predominantly in the agriculture sector left developing countries a net importers; hence, loser in global economic activities. Contrary to this, these economic giants have captured the huge market of industrial products in the developing countries. The share of these countries in global trading volume is the highest with China, Germany, America and India securing first four positions in terms of trade volume.
According to a research, one percent increase in the imports of goods, including machinery and intermediate inputs, annually accelerates per capita real income growth by 0.31% and real gross domestic product growth by 0.32%. However, one percent increase in export-GDP ratio results in 0.70 and 0.77 increase in per capita real income and GDP, respectively. By this, we can conclude that exports, not imports, always contribute much more in growth, for, trade in developed countries which is based on exports, has played miracles for the national economies. Although, imports do contribute towards economic growth, yet the pattern or structure of imports is very important to determine the real contribution. However, various international activities and moves are beyond the control of the state apparatus. The global trading environment particularly under the WTO has failed to ensure free and fair trade across the globe due to the stringent behaviour of key traders of the world. Renewed economic policy of Pakistan also aims at trade-led growth of the domestic economy which is being attained at several levels, yet the global trade regime is inauspicious for countries like Pakistan, struggling hard to attain economic prosperity through international trade. Conversely, countries that have already captured significant share of international trade are selfishly not willing to create a fair trade environment. The prolonged Doha round of talks has also endangered the legitimacy of the WTO as a neutral body in trade affairs disturbing the new economic world order.