Outcome of the 9 th WTO Ministerial Conference

1. Outcome of the 9th WTO Ministerial Conference Dr Brendan Vickers Chief Director: Research and Policy International Trade and Economic Development Division Presentation to the Parliamentary Portfolio Committee on Trade and Industry 26 February 2014

2. Introduction • SA is a proponent of multilateralism to manage globalisation and interdependence. • Imbalances in WTO rules that prejudice developing countries’ interests need to be addressed. • Reforms should enhance transparency and inclusiveness, and be re-balanced in favour of developing countries. • SA’s support for the Doha Round premised on overcoming identified imbalances and securing a developmental outcome for developing countries.

3. Bali MC9 • 9th WTO Ministerial Conference held in Bali, Indonesia from 3-7 December 2013. • SA preparations for MC9 included consultations with NEDLAC, Parliament and National WTO Conference. • SA Delegation led by Minister Davies and included Members of Parliament and NEDLAC Constituencies: Business, Labour and Community. • MC9 delivered first outcome of Doha Round following prolonged impasse in negotiations since 2008. • Minister Davies, WTO DG and WTO Members paid tribute to former President Mandela on his passing.

4. Bali Outcome • 10 Ministerial decisions taken in Bali. • Decisions on Regular Work of the General Council: • Standard decisions to extend waivers for e-commerce and TRIPS non-violation complaints. • Members instructed the Committee on Trade and Development to consider proposals on small economies and make recommendations. • Ministers reaffirmed their commitment to Aid for Trade.

5. Bali Outcome • Decisions on Doha Development Agenda: • Agriculture: India, supported by the Africa Group, did manage to deliver positive outcome on food security through public stockholding food programmes for the poor; also deal to improve transparency and administration of Agri TRQs • No movement on key issues of interest to developing countries: elimination of agricultural export subsidies; cotton; DFQF market access for LDCs; S&D provisions diluted • Trade Facilitation

6. Trade Facilitation Agreement (TFA) • TFA was the only fully binding agreement adopted following relentless pressure by developed countries. • Imbalances within TFA and between TFA and DDA. • TFA is imbalanced in terms of how the burden of implementation is distributed (binding rules without binding commitments to support implementation). • Developing countries required to “self-designate” their commitments under three categories: A, B and C. • Will be highly constrained and politicised process that requires agreement by other WTO Members. • TFA narrows scope of S&D treatment (“one size fits all”). • Implications for African regional integration?

7. Dynamics of Bali Outcome • Formally, the Bali Outcome may lay the basis for re-starting the Doha Round negotiations in its totality under the single undertaking principle. • However, some concern that MC9 delivered an imbalanced trade deal. • Lays basis for an approach where issues of importance to powerful are advanced, while those of the weaker WTO Members are marginalised. • Whereas TF and its binding commitments must be implemented now, developing country issues were adopted with best endeavour language and may only be addressed in future.

8. Post-Bali Process • Members mandated to develop a clearly defined work programme by end of 2014 to ensure delivery of the remaining DDA issues. • Priority to be given to issues in the Bali Package where legally binding outcomes could not be achieved. • Committee work has started to ensure entry into force of TFA and its implementation. • Chairs of DDA Negotiating Groups have also started work guided by principles outlined by the DG WTO. • SA will continue to build alliances with Southern partners (Africa Group, NAMA 11, G20, G90) to champion a development outcome to the Doha Round.