Report on the 8th Ministerial Conference of the WTO (15-17 December 2011)

Presented to

Parliamentary Portfolio Committee on

Trade and Industry By

Xavier Carim, DDG

International Trade and Economic Development Division, the dti

22 February 2011

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SA Preparations for MC8

• NEDLAC TESELICO consultations.• National Consultative Conference – Jo’burg, 28 Nov 2011.• SA Delegation to MC8 included MP and Business, Labour

and Community constituencies.• Meeting of SACU Representatives in Geneva.• Historic first meeting of BRICS Trade Ministers and BRICS

Ministerial Declaration.• Meetings of G20 and “Friends of Development” (new alliance

of over 100 countries, including AU, LDCs, ACP and BRICS).• Minister Davies held 15 bilateral meetings in Geneva.

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8th Ministerial Conference (1)

• MC8 was not a negotiating session for Doha Round. • Recognition that Doha is at an impasse.• MC8 decisions focused largely on non-negotiating WTO

matters.• However, some discussion on how to restart the Doha Round

and on what basis:– Proposed new approach to advance negotiations amongst a

limited number of Members (so-called plurilateral approaches);

– New issues for negotiation as proposed by developed countries, including energy, food security, competition and investment;

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8th Ministerial Conference (2)• Impasse due to attempts to erode Doha development

mandate and demand that emerging economies take on greater commitments without reciprocal concessions.

• Minister Davies delivered SA Country Statement reaffirming the development principles and mandate agreed in 2001.

• Sets out SA position on Doha clearly. • SA advanced this position in 3 working sessions on the

future of the Multilateral Trading System; Trade and Development; and the Doha Development Agenda.

• Country positions indicate clear, profound divide on Doha.• Unclear when the Round can be restarted.• WTO DG proposed to convene a panel of multi-stakeholders

in 2012 to consider the future of the WTO and DDA.• SA will need to consider and prepare for this process.

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MC8 Key Decisions and Outcomes

• Accession of new Members: Russia, Montenegro, Vanuatu and Samoa (WTO now covers 95% of world trade).

• Standard decisions to extend waivers for e-commerce and TRIPS non-violation complaints.

• Extension for LDCs to implement the TRIPS Agreement.• Reaffirmed the WTO’s work programme on SVEs.• Greater technical and capacity support for LDC accession.• Services waiver for LDCs.• Continued surveillance of trade and investment measures

(SA has called for a broader understanding of protectionism).• Updated plurilateral Government Procurement Agreement.

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South African Position• SA remains committed to concluding Doha Round on the

developmental mandate agreed in 2001.

• Development mandate remains relevant ten years on, especially reforming trade rules for Agriculture (litmus test).

• SA is committed to the principles of multilateralism, transparency and inclusiveness.

• Proposals for plurilateral negotiations undermine these principles and will further marginalise developing countries.

South African Position

• New approaches aim to extract greater access into the markets of emerging developing countries.

• While emerging economies are rising and dynamic (GDP and shares of world trade), they still confront profound development challenges.

• Proposals to introduce new issues in WTO are premature given the unfinished business of the Doha Round.

• New approaches are unfair, un-mandated, and anti-development.

• LDC Package for poorest and most vulnerable Members, which would lend legitimacy/credibility to MTS.

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THANK YOU