Doha Bank recently hosted a knowledge-sharing session on "Doha Round and regional trade agreements" at the Doha Bank auditorium, West Bay.
The presentation on this topic was made by Prof John Romalis, School of Economics, University of Sydney. Senior Bankers, economists and others participated.
Doha Bank Group CEO Dr R Seetharaman gave insights on major trends impacting currencies.
He said: "In June 2010, the People's Bank of China announced that the Renminbi exchange rate will drop the peg against the US dollar and return to the pre-crisis arrangement. During the crisis in July 2008, China effectively pegged the Yuan 6.8 to the dollar to support manufacturers battered by the financial crisis.
Swiss National Bank (SNB) set a minimum exchange rate of 1.20 Francs per Euro in September 2011 as the rising Franc could pose a threat to Switzerland's economy. The currency war has once again begun with the Japanese Yen weakening against major currencies in 2013 on account of Quantitative Easing done by Japan as part of "Abenomics". The currency war contributes to trade war. Highlighting key trends on global trade and economy, he said: "World trade growth fell to 2% in 2012 from 5.2% in 2011. Global trade will also be impacted on account of significant volatility in currency markets as witnessed in summer of 2012.
According to IMF, global growth is now projected to be at around 3.7%, rising to 3.9% in 2015. "Final demand in advanced economies expanded broadly as expected. In emerging market economies, an export rebound was the main driver behind better activity, while domestic demand generally remained subdued, except in China. The developing world should also play an active role in global governance. Across the world, 700mn people in some 76 low and middle-income countries are food insecure, and the situation could grow worse in the poorest countries according to the US Department of Agriculture. WTO (World trade organsiation) must address food security needs of developing countries. The WTO Trade Facilitation Agreement in Bali in December 2013 creates binding commitments across WTO Members to improve cooperation among WTO members on customs matters and help developing countries fully implement the obligations."
Romalis gave insights on regional trade agreements, which can liberalise trade and gave reference to the European Union in areas such as product standards, public procurement, services trade, fiscal and physical barriers, common currency, capital markets and labour markets.
He explained the key elements of Doha Round agenda such as agriculture, non-agriculture market access, services, trade facilitation and intellectual property: dispute settlement.
Romalis also highlighted the key obstacles to trade negotiations from voters, producers and agriculture.
© Gulf Times 2014
