SOURCE: SEATINI bulletin 6.10 Email: [email protected] [2], Website: www.seatini.org [3]

Editorial: Africa must not be afraid to reject or reopen any draft package purporting to reflect outcome of negotiations

Percy F. Makombe

Over the past four weeks, trade meetings have taken place where the failure of industrialised countries to meet many Doha commitments have been discussed. There is no doubt that the World Trade Organisation’s credibility and legitimacy have taken a pounding. Far from fulfilling its trumpeted goals of achieving a fair world trading system, the WTO has not been able to provide a balance between the strong and the weak. Instead, it has pursued a corporate agenda riding rough shod on people’s rights with the ultimate aim of maximising profits. It is therefore not surprising that there has been little or no movement in Doha-mandated negotiations in areas of interest to developing countries. This is evidenced by the failure to meet deadlines in the areas of Agriculture, Implementation issues, TRIPS and Public Health as well as Special and Differential treatment. While developed countries have delayed and frustrated progress in the mentioned areas they want lightning speed applied to areas of their interest like Singapore Issues, Industrial Tariffs and Services. This cannot be. The time has come for Africa particularly and developing countries in general to review the terms under which they participate in the world trading system.

When the Organisation of African Union was buried in Durban, South Africa on 1 July 2002, the hope was expressed that the new African Union would accelerate the political and economic development of the nation. Indeed part of the aims of the AU are to: “Promote sustainable development at the economic, social and cultural levels.” As the economic development of Africa takes centre stage, there are some hard choices that have to be made before proper economic liberation can take place. As developing countries pursue this economic liberation, it is important to remember that development can never take place where the ultimate aim is to make profit. The primary aim of economic programmes and trade arrangements must be to serve the well being of peoples of the earth. It must benefit the majority not just a chosen few. There is wisdom therefore in the decision taken by trade ministers from the Least Developed Countries (see Patel’s article in this bulletin) that calls for the continuation of the study process on the four Singapore Issues (Investment, Competition Policy, Transparency in Government Procurement, and Trade Facilitation). More importantly, the ministers noted that “progress in the work of the Working Group on Trade and Investment clearly indicates that there would be no agreement between now and Cancun on any elements outlined in the Doha declaration. Therefore, it is still premature to consider the real substantive issues.”

The ministers also called for “ a resolution before Cancun, of all implementation related issues and concerns, and all S&D proposals with a view to strengthening them and making them precise, effective and operational as mandated by the Doha declaration.” This is a very important proposal especially given the fact that developing countries have been raising these issues since the coming into force of the Uruguay Agreements. The major developed countries have not respected the time frames provided for the successful resolution of these issues. So the developed countries need to respect the commitments made in Doha. Infact the 6th SEATINI Workshop (April 2003) in Arusha, Tanzania recommended that; “All the Implementation Issues are addressed and resolved at the Trade and Development Committee level, immediately and to the satisfaction of developing countries.”

The agricultural sector of developing countries is already suffering because of trade liberalisation. Liberalisation besides threatening food security has undermined food sovereignty as countries experience a rapid rise in food imports while exports go down. Liberalisation means that farmers in the rural areas of Africa who grow cotton, maize, soya beans and coffee cannot get good prices even in their own local markets as their products cannot compete with cheaper items that are dumped in their markets by the developed countries. The agricultural subsidies given to farmers in industrialised countries are not even targeted at the poor farmers in those countries, they are instead aimed at boosting the profitability of big wealthy agro-businesses. This has the added effect of not marginalising small producers, it also adds to increasing unemployment and poverty. Against this background, it would be insensitive for the WTO to pursue further liberalisation. Agriculture is the engine of most African economies. A situation which allows developed countries to maintain their subsidies while refusing to extend the same right to developing countries is simply untenable. As the Dakar declaration in this Bulletin states: “Agricultural policy must respond to the fundamental rights and needs of populations, in particular women…” The need therefore for S&D treatment for developing countries, so that they are allowed to raise tariffs on strategic products, in accordance with their individual needs cannot be overemphasised.

So whenever the African Union meets to discuss trade issues before the 5th Ministerial in Cancun, Mexico, September this year, they should not sell away people’s rights. The right to food, to basic services like drinking water, healthcare, housing and education are rights that are protected by the African Charter on Human Rights and the United Nations Declaration on Human Rights. Governments must be encouraged never to lose their ability to regulate policy on economic activities. African economies have been devastated and our people brought to the brink of starvation. We cannot continue with the business as usual attitude. Commonsense dictates, logic demands and reason desires that we unequivocally state that Africa is not for sale. The people of Africa will not stand idle and watch the family silver being sold. What is needed are programmes that put the people first. Justice and equity demand a fundamental reordering of the trade system. This system must recognise that it is a violation of fundamental human rights when states fail to meet the basic needs of the people. Each African state must, as provided for under the Doha mandate, exercise its sovereign right to reject or reopen any draft package purporting to reflect the outcome of negotiations.

*Percy F. Makombe is the Assistant Editor of the SEATINI Bulletin.

Produced by SEATINI Director and Editor: Y. Tandon; Advisor on SEATINI: B. L. Das
Editorial Assistance: Helene Bank, Rosalina Muroyi, Percy F. Makombe and Raj Patel
For more information and subscriptions, contact SEATINI, Takura House, 67-69 Union Avenue, Harare, Zimbabwe, Tel: +263 4 792681, Ext. 255 & 341, Tel/Fax: +263 4 251648, Fax: +263 4 788078, email: [email protected] [2],Website: www.seatini.org [3]
Material from this bulletin may be freely cited, subject to proper attribution.