A detailed analysis of the recent World Trade Organisation (WTO) talks in Cancun, Mexico, show the preferences offered by the developed world to select developing world countries such as Mauritius were the worm that brought about the failure of the talks, South African Trade and Industry Minister Alec Erwin told Parliament on Friday.
“After the good work of unifying African positions during the Doha meeting, the complexities of agriculture began to worm into this fragile structure. The worm wound its way into the whole African, Caribbean and Pacific (ACP) group of countries and the Least Developed Countries (LDC). The worm was the dependence
on preferences,” said Erwin.
Erwin said that the agricultural economies of these countries were either tied into historic monoculture or into the ability to sell products at the artificially high prices established by EU Common Agricultural Policy (CAP).
The dismantling of this system of preferences, which Erwin describes as a perverse new dimension to the imperial relationship, posed real threats that no sensible government with a weak economic base could take lightly. The agricultural protectionists lost no time in mobilising this vulnerability.
“Africa was chaired by Mauritius — a more preference dependent economy is hard to find — and the result was rather chaotic. In the sad hurly-burly of the meeting Mauritius ended up actually joining a hardy band of agricultural protectionists led by Switzerland, Norway and Japan.”
He said that ironically the final moments of Cancun were a bonfire that was not ignited by the expected.
“Agriculture had moved thanks to a more equal negotiating status of the EU, USA and the G22. The G22 was well capable of manoeuvring through the waters of Singapore issues and on industrial products a workable framework was on the table. However, in the end the preference vulnerable economies that had been so insidiously wooed by the EU, USA and Japan troika when faced by a last minute compromise proposal from the EU and Japan on the Singapore issues just said we
are gatvol. Time escaped us and the Chair wisely saw that fatigue was not a replacement for good sense and called it a day in an orderly way.”
Erwin stated, however, that the failure was not something to celebrate.
“The costs of the setback are high and should not be underestimated. But the problem does not lie in the developing world, it resides in the political systems of the developed world that cannot see the costs of what they are paying for in such large amounts. In the setback, new forces realised that we have capacity and need never ask questions as to the validity of our cause.
He added that it was necessary for developing countries to work to ensure that the developed world understands that its policies are wrong for all people when it comes to agriculture.
“These are political processes and as the system of colonialism was wrong so is the imbalance in the world trade system. The global economy must progress so that all humanity should progress.” – I-Net Bridge