Bimha to lead Zim delegation to WTO

Published: 26 November 2013

ZIMBABWE will back demands for special dispensations to developing economies at the Ninth Ministerial Conference of the World Trade Organisation scheduled for Indonesia next month.

The ministerial meeting, the highest decision making organ of the WTO, will meet in Bali, Indonesia to discuss trade facilitation, agriculture and development issues from 3 to 6 December.

Industry and Commerce Minister Mike Bimha said Zimbabwe, like the rest of the developing world, will demand a whole package rather than piece meal approach to issues of trade relations.

Minister Bimha will lead a delegation that will include representation from the Parliamentary portfolio committee on industry and commerce to join other legislators from across the world.

Parliamentarians will have their own discussions during the WTO meeting, the minister said, since what will be agreed at the ninth biennial meeting, will be ratified by legislators at country level.

This comes as developing nations have their own reservations about focus on trade facilitation when they face multitudes of challenges to compete fairly with advanced economies. As they are, trade facilitation provisions will only encourage developing world exports.

"We are saying that trade facilitation is just one aspect of many things that we should look address. We need to take a holistic view and look at the whole package rather than agree on trade facilitation only because as a Government we have our own interest," said Minister Bimha.

But the developed world were more interested in discussions around access to developing markets as they feel hindered by issues at ports of entry and tariffs such as customs and excise duties.

"They are concerned about issues at the borders, customs and taxes (they want addressed) so that their goods come (into our markets) easily.

It might be good to have trade agreements, but do we have the capability (to compete fairly), we need to get our house in order first."

Given the Bali meeting will seek outcome on trade facilitation experts have advised developing countries against rushing into an agreement considering the current internal imbalance in the proposed agreement as well as the serious implementation challenges it poses.

If a pact is to be reached this should be done in a manner that suits each country, rather than through international rules which require binding obligations subject to dispute settlement mechanism and possible sanctions when the financial and technical assistance and capacity-building requirements for implementing new obligations are not adequately addressed.

According to a report by Geneva-based South Centre the provisions "do not address the priorities for increasing and facilitating trade, particularly exports by most of the developing countries.

These would include enhancing infrastructure, building productive and trade capacity, marketing networks, and enhancing inter-regional trade. Nor do they include commitments to strengthen or effectively implement the special and differential treatment provisions in the WTO system."

Rather, it is felt the trade facilitation negotiations have been focused on measures and policies intended for the simplification, harmonisation and standardisation of border procedures.

The other issue set to come under scrutiny at the WTO meeting, which Zimbabwe and other developing countries want seriously looked into is the issue of subsidies to agricultural produce.

Developing countries face stiff competition on global markets when competition with lower priced subsidised goods from developed economies. Minister Bimha said Zimbabwe is backing proposals for a subsidy on agricultural produce from developing countries to ensure a level field.

"Developing countries are still far from supporting (subsidising) farmers, much as we want, we are limited by resources. We want to see how best we can get support in those areas," the minister said.

Discussions on agriculture will also centre on export competitiveness and tariff grade quarter administration as the current set up was skewed in favour of the developed economies.

Further, the developing world also provides lots of incentives to their agricultural producers to export, which in the end tend to create unfair competition to produce from less developed nations.

The developing world would also want the WTO meeting to come up with strategies for differential treatment on implementation on some global trade rules taking into account the level of economic development to allow the developing world to catch up with their counterparts
- herald