South Africa ’ s Approach to the WTO’s 9 th Ministerial Conference

1. South Africa’s Approach to the WTO’s 9th Ministerial Conference By Xavier Carim, Deputy Director General: International Trade and Economic Development Division the dti Presentation to the Parliamentary Portfolio Committee on Trade and Industry 1 November 2013

2. Introduction • SA is a proponent of multilateralism to manage globalisation and interdependence. • Imbalances in WTO rules that prejudice developing countries’ interests need to be addressed. • Reforms should enhance transparency and inclusiveness, and be re-balanced in favour of developing countries. • SA’s support for the Doha Round premised on overcoming identified imbalances and securing a developmental outcome for developing countries.

3. Doha Round • SA’s negotiating objectives for the Round: • Enhance market access for products of export interests to developing countries; • Renegotiate rules that perpetuate imbalances in international trade regime; • Ensure appropriate policy space for developing countries to pursue development objectives through meaningful implementation of the principle of S&DT. • Doha mandate require to place concerns of developing countries at centre of the work programme. • In pursuit of above, SA has built alliances with Southern partners (Africa Group, NAMA 11, G20, G90).

4. Doha Round • Repeated attempts by major economies to erode the Round’s developmental mandate. • Oppose meaningful reform in agriculture, but pressure emerging economies to open their industrial and services sectors. • The demands on SA would be harsh: SA obtains little in agriculture, but required to take deeper and wider industrial tariff cuts than any other WTO Member. • Perpetuates imbalance of Uruguay Round, and not an outcome that is developmental, fair or balanced. • Divergences and intransigence brought Doha Round to impasse since July 2008.

5. The New Trade Narrative and WTO • Impasse prompted new approaches for international liberalisation and rule making negotiations. • In 2011, majors proposed plurilateral negotiations on selected issues and new priority issues for negotiations. • Undermine multilateral principle of the single undertaking that requires balanced progress on the agenda. • Leads to ‘Cherry-picking’: trade facilitation not agriculture. • Proposals to introduce new issues in WTO are premature given the unfinished business of the Doha Round. • SA is committed to concluding the Round on the basis of the development mandate and Single Undertaking

6. WTO Bali Ministerial • 9th WTO MC in Dec 2013 appeared to offer an opportunity to deliver a modest outcome on: • LDC Package (DFQF, Cotton, services waiver, RoO); Agric TRQs, export subsidies, food security; some S&D provisions; and Trade Faciliation. • Prospects not encouraging: No will to discuss DFQF, Cotton, agri subsidies outside broader Round. • LDC Services and RoO will be non-binding undertakings. • S&D provisions diluted. • Agri TRQs and food security proposals face serious opposition.

7. WTO Bali Ministerial • Great deal of pressure for a binding TF agreement. • Key problem is burden of implementation falls on weaker, poorer economies. • No willingness to commit to legal binding capacity building undertakings for weakest economies. • Efforts to reduce scope of S&D treatment for developing countries. • No agreement on some standards between majors. • Little time left to bridge gaps (11 Nov). • Declaration for ongoing work program post-Bali

8. SA Preparations for Bali • Consultations in NEDLAC. • Engagement with Parliamentary Portfolio Committee. • SA National Consultative Conference (14 Nov 2013). • AU Trade Ministers Meeting, Addis Ababa (21-25 Oct 2013). • SA Delegation to MC9 to include Members of Parliament and NEDLAC Constituencies: Business, Labour and Community. • Consultations with IBSA and BRICS Partners in Bali.