The talks failed because rich and poor countries could not reach agreement on two key issues. The first and most contentious of these was agriculture. Rich countries were accused of hypocrisy for urging poor countries to open their markets but not being prepared to open their own - or reduce the huge subsidies to their farmers. In the end, the rich countries would not agree to the abolition of all export subsidies which make their agricultural products cheaper on world markets. There was also a great deal of opposition to European Union proposals for rules to govern investment by multinational companies in the developing world. Many countries felt that they could not agree to this without losing control of their industries, and argued that the WTO was not the appropriate forum for such discussions. There was opposition to including the new, so called "Singapore Issues" , such as investments, competition and government procurement from developing countries led by India, Brazil and China.
Some the issues that led to the failure of the talks are explained in detail below:.
Development:.
This group covers a special and differential treatment; implementation; technical assistance; least developed countries; commodity issues; small economies; trade, debt and finance; and trade and technology transfer.
Facilitator Mukhisa Kituyi(Kenya) highlighted two issues which require further work: special and differential treatment and implementation. On special and differential treatment, differences remain on whether the current package of 24 agreed proposals acceptable for now. A number of developing countries believed that there is little, if any, economic value in the current package. Other developing countries think that there is some value but that more should be achieved.
However, the Tokyo Round had mixed results because it failed to come to grips with problems affecting farm trade and developing countries (C. ... Nevertheless, a series of agreements and arrangements, referred to as codes, did emerge from the negotiations " in an effort to control the proliferation of non-tariff barriers, such as voluntary export restraints and orderly marketing agreement- (Paul R. ...