Even if the latest round of the protracted Doha trade negotiations broke down, it was imperative for developing countries to deepen trade among themselves, the World Economic Forum summit heard on Wednesday.
South Africa’s Trade and Industry Minister Mandisi Mpahlwa told delegates attending the summit in Cape Town: ”And if we do that, the business community in the developed countries will wake up, because we shall not be opening up our markets to products from those countries, because we have failed to reach agreement on the multi-lateral process”.
In this context the question of strengthening intra-African trade, and eliminating blockages to higher levels of trade, was vital.
Mpahlwa was speaking at an update session of the Doha negotiations at the three-day WEF summit on Africa, which looked specifically at what the latest round of negotiations held for the continent.
According to the programme, a one percent increase in Africa’s share of world trade could translate into more than $70-billion a year in export revenues, more than four times what the continent receives in foreign aid.
The Doha development agenda, which the World Trade Organisation (WTO) agreed to in 2001, is aimed at furthering trade liberalisation while giving developing nations more access to global markets.
Mpahlwa said contacts between African trade ministers were limited, possibly only ahead of WTO negotiations, but hardly ever to discuss consolidation of intra-African trade.
”How do we break down the barriers among ourselves so that we can free up the trade within the African continent.”
Mpahlwa said issues of regional integration did not come naturally, because for it to work meant ”sovereign states incrementally giving up some sovereignty” to make regional integration a reality.
Valentine Rugwabiza, WHO’s deputy director-general, said she fully supported Mpahlwa’s sentiments on regional integration, but tariffs between African countries did not support this integration.
”Regional integration, if it is to become effective… [and] the tariffs are lower between African countries, then regional integration will become the building block for global integration,” she said.
Rugwabiza said should the next Doha round fail it would lead to increased bilateral and free trade agreements, initiated by ”powerful” countries.
In this scenario, developing countries would be left out and further marginalised.
Jerry Vilakazi, CEO of Business Unity South Africa, said country-to-country agreements might work for the short-term, but in the long-term it was necessary to create a global environment beneficial to developing countries.
”It is very important from a business perspective that this round of negotiations is not allowed to collapse and to fail … there is so much at stake, that if in the short-term we don’t manage to reach agreement on some of the issues, at least what we should achieve is to keep the momentum going.”
Vilakazi said just the liberalisation of agriculture, one of the main stumbling blocks to culmination of the Doha round of negotiations, could see about $200-billion flowing to poorer countries, many in Africa. – Sapa