Trade Policy and Strategy Framework

World Trade Organisation & Doha

• SA will not take deeper cuts than it would benefit from the global trade negotiation. Developed countries’ higher ambition on industrial goods negotiations is not properly matched in Agriculture. This erodes the Round’s development content.
• SA’s negotiating objectives aim to:
• Enhance market access for products of export interests to developing countries;
• Renegotiate rules that perpetuate imbalances in international trade regime;
• Ensure appropriate policy space for developing countries to pursue development objectives through meaningful implementation of the principle of S&DT.

An Agenda for Future Trade Policy Work

• SA trade policy also looks at starting a work-programme on Services and New Generation Issues:
• Services
• Other new generation issues: investment, competition, intellectual property, government procurement, labour and the environment.
• Other behind-the-border protection measures that impede developing countries’ access to markets of advanced economies.
• SA will develop a proactive stance on these areas, and guided by its development objectives and the need to preserve policy space to regulate in the public interest; balance economic efficiency with socio-economic equity; and enhance economic competitiveness.

Accompanying Policies

• Trade reform creates winners and losers. Thus a crucial area for the future will be in the area of “accompanying policies”.
• Adjustment costs of previous liberalisation was disproportionately borne by the poorest sectors of the population who witnessed the rising tide of unemployment.
• Accompanying policies will need to pay attention to appropriate measures to cushion vulnerable sectors.
• Safety nets, retraining and a range of support will thus be explored.

Conclusion

• Trade Policy complements industrial policy and seeks to contribute to growth, industrial upgrading, export diversification, and employment creation.
• Apart from using tariff policy as an industrial policy support measure, there are other new frontiers of trade policy that we are devoting resources to, including services and other new generation issues.
• Defining terms of integration in the global economy on beneficial basis is an important objective of trade policy. This includes the nature of relations at the regional, bilateral, and multilateral levels.
• In the ultimate, trade policy has to make a meaningful and positive contribution towards achieving desired developmental outcomes.

• Thank You