/ 14 April 2003

Nepad won’t escape unscathed by Iraq war

With the world’s attention on Iraq, Africa must realise that its future, now more than ever, lies in its own hands, Trade and Industry Minister Alec Erwin said on Monday.

”Whilst we are sure that the United States administration will not turn away from Africa, it would be naive to think it will be a priority,” he said during debate on his Budget vote in the National Assembly.

The potentially lasting damage that may have been done to multilateralism as a means of global governance through the US-led war in Iraq was of great concern.

The undermining of international rules and norms could have implications in a number of areas, including the Doha trade negotiations, the New Partnership for Africa’s Development (Nepad) and trade talks with the US.

The government was hopeful the Southern African Customs Union (Sacu) negotiations for a free trade agreement with the US — due to begin in May — remained on track.

The minister said Nepad was critical for the successful economic development of the continent, and was based on partnerships between Africa and the rest of the world.

”Whilst we must not allow world attention to be diverted from this enormous task, we must realise now more than ever that Africa’s future lies essentially in its own hands.”

Erwin said the Doha trade talks were at an impasse because there was no agreement on a range of issues critical to developing countries.

The refusal by the US to agree to a mechanism that would allow countries to legally import medicines for public health reasons under compulsory licences was posing severe constraints for nations that could not afford expensive drugs.

A further point of tension was that by the end of March, there had been no agreement on how to advance the talks on agriculture.

”The rich and industrialised nations are failing to demonstrate leadership and are putting this very important multilateral process in jeopardy.

”The Doha development agenda needs to be put back on track, and the major powers bear a disproportionate responsibility to do so.”

However, despite these global uncertainties, South Africa would not change its course on fostering growth and development, he said.

On black economic empowerment (BEE), Erwin said his department was working closely with the National Treasury to explore innovative ways to provide financial support to BEE enterprises.

Government is to set aside R10-billion over the next five years to assist BEE. – Sapa