27 June 2006
The Minister of Trade and Industry, Mr Mandisi Mpahlwa, will lead the South
African delegation to the World Trade Organisation (WTO) talks in Geneva on 28
June 2006. The talks are aimed at establishing the modalities for the reduction
of agricultural subsidies and tariffs, as well as industrial tariffs.
South Africaâs position on the issue is well known. It wants developed
nations, and in particular the United States and the European Union, to reduce
their agricultural subsidies to farmers in their countries in a bid to level
the playing field. It also wants them to reduce tariffs on agricultural
products for the benefit of developing country exports. Moreover, it is adamant
that the reduction in agricultural subsidies and tariffs should not be held
ransom to a reduction of industrial tariffs by the developing world.
The dti is keenly aware that the protracted talks have led to some pessimism
about the benefits of talks. However, the department stresses its commitment to
the negotiations because the WTO is the single most important forum in global
trade and could deliver important benefits to developing countries, including
South Africa.
As a member-driven organisation, WTO decisions are based on consensus. As a
member, South Africa can influence the organisationâs agenda, its work
programmes and its decisions. South Africa is an active participant in the
WTO.
As an active participant in the Doha Development Agenda negotiations, South
Africa is involved in all the negotiation groups and special sessions of
committees mandated to oversee the negotiation process. South Africa has
submitted and/or co-sponsored numerous proposals for mandated negotiations in
these structures.
In the global ambit, the WTO provides a transparent, fair and predictable
rules-based trade system that gives its members the choice in their imports and
exports, and provides valuable guidelines for trade policy.
Non-discrimination is a fundamental principle of the WTO and under its
agreements countries cannot normally discriminate between their trading
partners, and foreigners and locals are also treated equally under the
so-called national treatment principle.
The WTO is also involved in continuous negotiations to lower trade barriers,
and the ensuing opening of markets gives countries huge potential to develop
markets. The organisation provides a fair and transparent dispute resolution
mechanism, in which size is not important and a small country can take on the
Goliaths of the global economy.
Since all members are compelled to notify the organisation of its trade
policies and practices, it is an invaluable source of information for traders
in planning their trade strategies.
The response to any negativism about the Doha Development Agenda is that
South Africa cannot afford not to be in the WTO. This all-important concert of
nations is the forum from which our country must drive its ambition to promote
trade and development and champion the cause of the sub region, the African
continent and the developing world.
Issued by: Department of Trade and Industry
27 June 2006
Source: Department of Trade and Industry (http://www.thedti.gov.za)
