SA had gained “a
bit more” from the World Trade Organisation (WTO) meeting in Hong Kong
in December than it expected, said the country’s chief negotiator
yesterday. Carli Lourens
The European Union’s (EU) commitment
in Hong Kong to eliminate export subsidies on farm products was no
great feat as the EU had already planned to do this internally, said
Xavier Carim.
But the date was now a commitment within the WTO, said Carim.
He was speaking at an Institute for Global Dialogue
briefing on the Hong Kong event, where trade ministers from the WTO’s
149 member countries met to advance efforts towards a new world trade
pact.
Developing countries had also resisted substantial
pressure by rich countries to make substantial concessions in terms of
further opening their markets to industrial goods and services.
A number of these countries, including SA, India, Brazil,
China, Egypt and Venezuela, formed a new grouping, Nama-11, to block
rich countries’ progress on opening developing markets for industrial
goods in the absence of progress on agriculture issues.
It is now documented that the level of ambition in
industrial goods talks depends on the level of ambition in agricultural
market access.
Developing countries had also averted attempts by rich
countries to change the structure of negotiations in Hong Kong to place
greater emphasis on services, said Carim.
Better access to poor countries’ services markets was
important for rich industrialised countries, which typically comprised
about 80% of services, he said.
Developing countries managed, for example, to tone down
wording documenting their commitment to opening services markets from
“shall” to “will consider”, said Carim.
Carim said that while SA and some other developing
countries had gained more from Hong Kong than they expected,
expectations of what could be achieved in Hong Kong had sunk to
“unambitious levels” by October, based on the lack of progress in the
run-up to the meeting.
Some trade analysts in SA were not convinced of better-than-expected gains for developing countries in Hong Kong.
Institute for Global Dialogue senior researcher Michelle
Pressend said many felt Hong Kong was a step back, with poor countries
still expected to make “hard concessions” in the areas of services and
industrial goods.
International trade commentator Peter Draper, of the
South African Institute of International Affairs, said the EU’s
commitment to eliminate agricultural export subsidies by 2013 was
“hardly a concession” and was based on conditions.
Dot Keet, of the Alternative Information and Development
Centre, warned that SA and other developing countries would now face
more pressure than before to open their markets for industrial goods
and services from rich countries.
She said, however, that developing countries should not
aim to meet rich countries on middle ground. The vast support that rich
countries provided to farmers was “illegal, immoral and unsustainable,”
said Keet. “They are wrong, we should not comprise,” she said.
Developing countries should not have to reduce their tariffs, she said.
SA is unlikely to be required to lower tariffs on
industrial goods imports substantially, as it was already substantially
ahead of its commitments made to the WTO.
SA was allowed to have an average of about 17% on
industrial goods, whereas the average tariff was about 7% at the
moment. This was substantially below the average of 20% in 1990, Carim
said.
Meanwhile, SA’s chief negotiator is not confident that
the next interim deadline of April to thrash out details on issues such
as industrial goods tariffs would be met in order to complete the talks
by the new deadline of “around” year end.
But he said it was “not a foregone conclusion” that there would not be progress by April, he said.
WTO director-general Pascal Lamy and European trade
commissioner Peter Mandelson are expected to report on progress in the
Doha round of talks when they address a meeting of the Institute of
International Affairs at Wits University tomorrow.
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