Question 642
Mr SJF Marais (DA) to ask the Minister of Trade and Industry:
Whether his department will provide information to farmers in respect of the present Doha World Trade Organisation (WTO) negotiations on any concessions regarding greater market access for exporters of beef, sugar, grapes and oranges; if not, what is the position in this regard; if so, what are the relevant details?
Response:
The Department of Trade and Industry (dti) consults with National Economic Development and Labour Council (Nedlac) on a monthly basis on the Doha Round negotiations. Representatives of the agricultural sector are present during these consultations. In addition, the Department of Agriculture, Forestry and Fisheries consults with the agricultural sector, which includes producers of beef, sugar, grapes and oranges, on all aspects relating to international trade, under the Agricultural Trade Forum (ATF).
Representatives from the dti attend this forum. The ATF meets approximately every six weeks and members are briefed in detail on all bilateral and multilateral trade negotiations, including the WTO Doha negotiations. Negotiation positions are only formulated after in-depth consultations with the relevant stakeholders in the ATF. Through the ATF, producers and exporters of the products in question have been briefed in detail on the expected provisions relating to market access in agriculture.
It should be noted that the Doha negotiations have not yet progressed to a point where there is clarity on the market access opportunities that will emerge at a product level. The designation of which sensitive products will be excluded from tariff reduction obligations has not yet been clarified. This makes it impossible, at this stage, to predict which agricultural products may enjoy enhanced market access from the Doha Round and which will not.
It should further be noted that a substantial part of South Africa's agriculture exports (more than 60%) enjoy tariff preferences under the range of trade agreements concluded between South Africa and partner countries. We have preferences into the European Union under the Trade Development and Co-operation Agreement (TDCA), the Southern African Development Community under the SADC Trade Protocol, the United States of America (USA) through the African Growth and Opportunity Act (AGOA), the Southern African Customs Union (SACU), and Switzerland, Liechtenstein, Norway and Iceland through the free trade agreement with the European Free Trade Association (EFTA). Agricultural product exports further enjoy preferential market access under various General Scheme of Preferences (GSP) schemes offered by developed countries.
Nevertheless, we anticipate that many agricultural products that are currently excluded from these preferential arrangements will be designated as sensitive products in the Doha Round. This suggests that South African agricultural exporters are unlikely to gain improved market access out of the Doha Round. South African agriculture may however benefit indirectly if the Round is concluded and industrial economies substantially reduce trade distorting support and eliminate the export subsidies they currently provide to their farmers.
Issued by: Department of Trade and Industry
31 August 2009
