WORLD TRADE WT/MIN(98)/ST/96
20May1998
ORGANIZATION(98-2118)
Original: English MINISTERIAL CONFERENCE
Second Session
Geneva, 18and20May1998
TANZANIA
Statement Circulated byHon. K.A. Mussa,
Minister ofTrade, Industries andMarketing onBehalf oftheSouthern
African Development Community (SADC) Member Countries
SADC, wasestablished in1980 asaregional development coordination conference andhas,
since 1982, beentransformed intoacommunity, currently grouping 14Member States ofSouthern
Africa. TheMember States are:Angola, Botswana, theDemocratic Republic ofCongo, Lesotho,
Malawi, Mauritius, Mozambique, Namibia, Seychelles, South Africa, Swaziland, Tanzania, Zambia
andZimbabwe. Over theyears, SADC 'smain preoccupation hasbeenfocused onreducing extreme
external economic dependence, andachieving economic andsocial development fortheregion through
collective efforts ofMember States withthesupport ofthecooperating parties. Animportant aspect
wasthesigning oftheSADC Trade Protocol which provides fortheestablishment ofafree-trade
area, asannounced during thefirstWTO Conference inSingapore December 1996. Thecreation of
thefree-trade areaisintended toenhance integration andeconomic synergy within theprocess of
community building.
SADC hasextended itsscope toinclude programmes forenhancing political stability, peace
andsecurity, andthedemocratization process including thepromotion ofhuman rights andgood
governance, gender andenvironmental concerns initsdevelopment programmes. SADC countries
consider these developments asanimportant prerequisite forencouraging investment andtrade in
order toachieve accelerated andsustainable economic andsocial development.
SADC countries arehighly committed totheprinciples andcourse forwhich WTO was
established. Astrengthened SADC regional economy isconsidered animportant building block for
viable participation intheworld economy andtrade. ThisWTO Ministerial Conference provides an
added opportunity toevaluate theimplementation ofvarious agreements oftheWTO against certain
agreed objectives andtargets; andtomake decisions thatwillguide future work intheprocess of
creating anenabling climate forallMember States tobenefit from themultilateral trade framework.
Indeed themomentum thathasbeenbuilding upoverthepastfouryears since theWTO entered into
force hasbeengenerally pleasant especially fordeveloped countries andsome developing countries,
interms ofexpanded trade andjobcreation.
Implementation ofWTO Agreements
With regard totheimplementation oftheWTO Agreements, SADC 'sopinion isthat
developing countries continue toexperience difficulties incomplying withnotification requirements
which aremany andaburden tothem, inparticular theLDCs.WT/MIN(98)/ST/96
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Most developing countries have alsobeen unable tofulfil their obligations relating to
enactment ofnewlegislations andcreation ofinstitutions inorder tobring intoWTO conformity many
oftheexisting legislations, duetoinadequate administrative andresource capacities.
Theother problem isthenon-implementation oftheUruguay Round Agreement provisions
anddecisions relating toaccelerated implementation ofmeasures infavour ofLDCs including the
Special andDifferential Treatment todeveloping countries bydeveloped countries. Anexample of
thisproblem istheanti-dumping measures anddeveloped countries stillimpose ondeveloping
countries 'exports. Thisneeds tobeaddressed.
SADC countries arealsoconcerned thattheTRIPs Agreement willescalate theimbalance
against thedeveloping countries, byrestricting access tonewtechnologies. Wesuggest thatthe
Agreement should bereviewed inorder tofindways toavoid suchanomaly.
SADC countries would liketherefore topresent thefollowing three proposals forimproving
theimplementation ofWTO agreements:
- Developed countries andInternational Development Agencies should fullymeettheir
commitments toprovide resources thatwould support thecapacity building of
developing countries toimplement theWTO programmes.
- Thetime-frame already agreed uponfortheimplementation oftheAgreements should
notbebrought forward andinsome cases where developing countries experience
serious difficulties, thecompliance timeshould bereviewed.
- Commitments infavour ofdeveloping countries andLDCs should beimplemented,
including measures toredress possible negative effects ofthereform programmes on
LDCs andnetfood-importing countries.
High-Level Meeting onLDCs trade anddevelopment (HLM)
WeinSASDC, whose majority members areinthedeveloping andLDCs group, recognize
thattheWTO-organized HLM wasapractical follow-up toanimportant decision oftheFirstWTO
Ministerial Conference, toaddress theproblems ofmarginalization ofLDCs intheworld economy.
SADC countries notewithappreciation theannouncement ofautonomous market access offers
made byanumber ofdeveloped anddeveloping WTO Member countries. Wealsorecognize the
useful recommendations made geared towards improving LDCs capacity totrade andencouraging
investments inthese countries. Further, thespecific country round tables involving some LDCs
provided aunique opportunity tothese countries andcooperation parties andagencies tofacilitate
integrated initiatives fortheLDCs trade development.
However, theLDCs needs andresponses werenotasfocused andspecific aswewould have
wished them tobe. Besides theautonomous offers donotprovide guarantee astheycanbe
withdrawn.
SADC countries would therefore wish tomake thefollowing proposals toassist the
transformation ofLDCs:WT/MIN(98)/ST/96
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- Steps should betaken toformulate specific programmes forthetransformation ofthe
LDCs, based ontheneeds andpotentials ofeach individual country. Such
programmes should becomprehensive andshould address supply-side constraints,
infrastructural development andprovision ofmarket information.
- Amechanism should besetupforeffective management ofthetransformation
process forLDCs, including monitoring andevaluation. Itisalsorecommended that
themechanism andafocal point should beestablished toprovide feedback onthe
work programme. Inthisregard, consultations withITCandtheother agencies about
theestablishment ofsuchamechanism should beenhanced.
- Thesixagencies namely ITC,WTO, UNCTAD, UNDP, IBRD andIMFsupporting
LDCs should beencouraged tocoordinate theirpolicies andprogrammes onLDCs
foreffectively inorder toavoid duplication andtoachieved coherence.
- Concerted efforts should bemade tosupport andstrengthen SADC regional
industrialization andtrade development agreements aswellasprogrammes aimed at
strengthening theprocesses ofcommunity building.
- Theterms andconditions ofmultilateral rules onregional integration should be
interpreted andimplemented inways thatfacilitate regional integration among
developing andleast-developed countries.
- LDCs should beassisted inthepromotion ofdomestic andforeign direct investment.
- Initiatives taken toaddress LDCs problems should notbeseenasisolated from the
general problems ofthedeveloping countries.
Future work oftheWTO
With regard tofuture WTO activities, SADC countries aretheviewthatthebuilt-in agenda
represents anadequate framework forfuture negotiations andreview.
While cognisant oftheprogress made sofaronsome oftheareas inthebuilt-in agenda,
notably onbasic telecoms andfinancial services, concern persists inthree mainareas, namely market
access, production andtrade, andservice.
Market access
Market opportunities have notbeen accessed bydeveloping countries duetoserious
supply-side constraints interms ofinadequate export production, poor infrastructure and
uncompetitiveness.
SADC countries arealsoconcerned about theexistence oftariff peaks andtariff escalations
aswellasthegrowing useofnon-tariff barriers, including technical barriers totrade which constrain
developing countries exports. Inorder topromote practical market accessibility fordeveloping
countries, SADC countries would liketomake proposals asfollows:
- Appropriate andadequate measures should betaken tostrengthen andcompetitiveness
ofdeveloping countries 'exports.WT/MIN(98)/ST/96
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- Waivers should begranted andextended toenable continued preferential trade
arrangements provided under theACP-EU Lomé Convention andother similar
schemes tosupport developing countries 'trade development.
Production andtrade: industrial, agricultural
TheWTO Subsidies Agreement constrains theuseofmeasures topromote trade, and
industrial andagricultural production, which inturnholds backdevelopment.
SADC countries therefore recommend thattheWTO rulesonsubsidies bereviewed infavour
ofdeveloping countries, inorder toallow themtoutilize allinstruments available tothem fortrade,
industrial andagricultural development andpromotion.
Services
WeSADC countries areconcerned thatwemaynotderive meaningful benefits from the
GATS.
Wetherefore recommend thatspecial anddifferential treatment should bedeveloped infavour
ofdeveloping countries 'trade inservices suchastourism andexport oflabour intensive services.
Newissues
Weareaware oftheattempts bysome WTO Members, particularly thedeveloped countries,
tointroduce newissues ontotheWTO agenda. SADC countries wishtoobserve thatsince theentry
intoforce oftheWTO, most developing Member countries have, despite sincere efforts, been
struggling withlimited success tomeet their obligations asprovided forunder thevarious WTO
Agreements. Their capacity, therefore, totakeonnewcommitments overtheabove theexisting
obligations under thebuilt-in agenda isseverely limited.
Forthisreason SADC countries request thatpresently theWTO focus ontheimplementation
oftheUruguay Round Agreements. TheWTO should takestock oftheimplementation process and
evaluate whether theprospects ofeconomic growth, sustainable development andimproved
international relations thattheoutcome oftheUruguay Round hadpromised has,byanydegree, been
achieved.
AsSADC countries, wewould liketoreiterate theposition wetookinSingapore that
negotiations onnewissues arepremature, andtosuggest thattheintroduction ofpremature newissues
bythedeveloped countries onthealready over-burdened WTO agenda should beavoided.
Ontheother hand, developing countries should nevertheless beencouraged andsupported to
undertake concerted research andanalysis oftheirinterests andtheimplications ofthenewtopics.
This should include thedevelopment ofproactive strategies tothetopics inaddition toraising
additional newissues which areofinterest tothem. Where feasible efforts should bemade toensure
additional provisions intheWTO system infavour ofdeveloping countries topromote theireffective
andmeaningful participation inglobal trading system. Wewould alsowish tourge thatthe
decision-making process, including theformulation andimplementation ofmultilateral trade rules, is
transparent atalltimes. Since atpresent there isnolevel playing fieldintheinternational trading
system, itisimperative toensure flexibility inthedefinition andimplementation ofWTO rules and
obligations vis-à-vis developing countries.WT/MIN(98)/ST/96
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Equally importantly there isaneedtoseekabalanced andfavourable outcome oftheSecond
WTO Meeting which addresses theconcerns andinterests ofallWTO Ministerial Conference Member
States, inparticular thedeveloping countries.
SADC countries associate themselves withthecommon African position presented tothis
meeting. SADC countries havenodoubt thatMembers oftheWTO willsupport these proposals
which could beaneffective package forassisting thetransformation process ofdeveloping countries
andLCDs alike, thusproviding anopportunity forthem tobecome viable participants andpartners
intheworld economy.
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