Bali Package

Bali Package
Type Trade agreements
Context Doha Development Round of the World Trade Organization
Signed 7 December 2013 (2013-12-07)
Location Nusa Dua, Bali, Indonesia

The Bali Package is a trade agreement resulting from the Ninth Ministerial Conference of the World Trade Organization in Bali, Indonesia on 3–7 December 2013. It is aimed at lowering global trade barriers and is the first agreement reached through the WTO that is approved by all its members.[1][2] The package forms part of the Doha Development Round, which started in 2001.[3]


The accord includes provisions for lowering import tariffs and agricultural subsidies, with the intention of making it easier for developing countries to trade with the developed world in global markets. Developed countries would abolish hard import quotas on agricultural products from the developing world and instead would only be allowed to charge tariffs on amounts of agricultural imports exceeding specific limits. Another important target is reforming customs bureaucracies and formalities to facilitate trade.[4]

The Bali Package consists of ten separate decisions by the Ministerial Conference, covering four areas as follow.[3][5]

Trade facilitation


Covers food security in developing countries.


Development and LDC issues

Covers measures for Least developed countries (LDCs) and developing countries, including preferential treatment and market access.


Before the agreement, the negotiations repeatedly came close to collapsing. India's demand that it should be allowed to extend its domestic agricultural subsidies indefinitely was met by opposition from the U.S., while Cuba, Bolivia, Nicaragua, and Venezuela objected to the removal of a text relating to the U.S. embargo against Cuba.[10][11] Eventually, India and the U.S. reached a compromise where a permanent solution to the Indian subsidies will be decided in separate future negotiations within four years, while Cuba reached a compromise that saw it refrain from vetoing the agreement.[12][13] The U.S. and India came to a permanent agreement regarding India's food subsidies in November 2014.[14]

The negotiations were originally scheduled for 3–6 December 2013.[15] However, they had to extend until 7 December for an agreement to be reached.

This was the first global agreement by the WTO. Director-General Roberto Azevêdo said: "For the first time in our history, the WTO has truly delivered. We're back in business … Bali is just the beginning." He also expressed fears of bilateral agreements if the WTO talks failed. The Trade Minister of the host country, Indonesia, Gita Wirjawan, said the agreement was "historic". The United States Chamber of Commerce issued a statement that read: "With this landmark accord on trade facilitation and other issues, the WTO has re-established its credibility as an indispensable forum for trade negotiations."[11]

Financial estimates

The Peterson Institute for International Economics estimate that if the customs measures of the agreement are properly implemented, they could create US$1 trillion worth of global economic activity, add 21 million new jobs and lower the cost of doing international trade by 10–15 percent.[11][2][16]

See also


  1. "Asymmetries mark WTO's Bali Accord".
  2. 1 2 Donnan, Shawn (7 December 2013). "WTO approves landmark global trade deal". Financial Times. Retrieved 7 December 2013.
  3. 1 2 "Days 3, 4 and 5: Round-the-clock consultations produce 'Bali Package'". World Trade Organization. 7 December 2013. Retrieved 7 December 2013.
  4. Ignatzi, Christian; Wutke, Eva (7 December 2013). "WTO Bali agreement expected to boost growth". Deutsche Welle. Retrieved 8 December 2013.
  5. 1 2 "Draft Bali Ministerial Declaration". World Trade Organization. 7 December 2013. Retrieved 8 December 2013.
  6. 1 2 3 "WTO's 'Bali Package' to benefit PH, says Domingo". Inquirer.
  7. 1 2 "WTO Bali Declaration: what does it mean?". ODI UK. Archived from the original on 24 December 2013. Retrieved 22 December 2013.
  8. "Right to food wins 'defensive battle' in World Trade Organization deal". Global Post.
  9. "WTO: 2011 NEWS ITEMS". Retrieved 22 December 2013.
  10. "World Trade Organisation adopts Bali Accord, to move ahead on Doha round". The Indian Express. 7 December 2013. Retrieved 7 December 2013.
  11. 1 2 3 "WTO deal aims to boost global commerce". Al Jazeera. 7 December 2013. Retrieved 7 December 2013.
  12. Schneider, Howard (7 December 2013). "U.S.-India compromise allows trade deal to hobble forward at WTO". The Washington Post. Retrieved 7 December 2013.
  13. "W.T.O. Reaches First Global Trade Deal". The New York Times. Retrieved 7 December 2013.
  14. "India and US reach WTO breakthrough over food". BBC. 13 November 2014. Retrieved 13 November 2014.
  15. Zarocostas, John (7 December 2013). "Global Trade Deal Reached". WWD. Retrieved 8 December 2013.
  16. Hufbauer, Gary Clyde; Schott, Jeffrey J.; Cimino, Cathleen; Muir, Julia (18 April 2013). "Payoff from the World Trade Agenda 2013". ICC Research Foundation. Retrieved 7 December 2013.

External links

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