17 November 2019 (closed)
USD/IDR (14,097) +6.00 +0.04%
EUR/IDR (15,610) +9.46 +0.06%
Jakarta Composite Index (6,128.35) +29.40 +0.48%
After two long days of intense negotiations, Director of the World Trade Organization Roberto Azevedo announced that the discussions have resulted in the Bali declaration on Saturday morning (07/12). The agreement between the participants were put in 10 documents, known as the Bali Package, and cover trade facilitation (trade liberalizations), agriculture, cotton and development. Azevedo stressed the importance of the agreement when he said "[for the] first time in our history, the WTO has truly delivered."
The Bali Package is a big step in light of the Doha Development Round (trade-negotiation round of the World Trade Organization, WTO) that commenced in 2001. The target of the Doha Development Round is to reduce trade barriers in order to expand worldwide economic expansion, development and opportunity. It aims to revive confidence in global trade by laying the groundwork for a robust global trading system.
The Bali Package, which is said to boost the world economy by an USD $1 trillion injection, allows developing countries more options on food security, and support trade and development.
One of the main problems to reach an agreement was India's persistance to maintain its food security program (particularly its large farming subsidies), while developed countries were concerned that these high subsidies would disturb international grain prices. Another problem was the US trade embargo against Cuba.