1. South Africa’s Approach to the WTO’s 9 th 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. 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. 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. 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. 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 9 th 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. 6

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 7

8. 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.

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