Africa/WTO

["Ian Murray" <seamus2001@xxxxxxxx>]

Friday August 17 12:29 PM ET

Africa Has Own Aims on World Trade Talks
By Mariam Isa

JOHANNESBURG (Reuters) - African countries may take a slightly
different position to other developing nations ahead of a new round of
world trade talks in November, South Africa's Trade Minister Alec
Erwin said on Friday.

Erwin told reporters that African countries preparing for the next
meeting of the 142-member World Trade Organization in Doha, Qatar,
believed that negotiations should cover a wider range of issues, such
as tariffs on industrial goods.

They were also keen to boost trade on the continent, which tied in
with proposals for an African recovery plan drawn up at the final
meeting of the Organization of African Unity in Lusaka, Zambia last
July.

``We may propose a specific arrangement for Africa that will allow us
to have greater inter-regional trade,'' he said.

Trade between African nations amounts to just 10 percent of the total
for the continent, according to World Bank research.

Erwin said it was crucial to correct a tariff imbalance that protects
the manufacturing process rather than raw materials -- the mainstay of
Africa's exports -- thus keeping many countries within primary product
areas.

``There are slightly different positions taken (between developing
nations). In Africa I think a number of countries -- Kenya, South
Africa, Egypt and many others -- we are of the view we do need to
negotiate more widely,'' he said.

DEVELOPING COUNTRIES ALSO NEED TO UNIFY

But he also said it was important for developing countries to unify
around a common position, which was becoming clearer.

``The common position for developing countries essentially deals with
agriculture, services -- and a host of implementation issues,'' he
said. The latter included intellectual property rights and
trade-related investment rules, he said.

Developed trading blocs such as the European Union were keen to raise
issues around investment and competition, and working teams from
Africa had been set up with contacts in Europe to prepare defensive
positions, he added.

He said that South Africa would be one of five African countries which
would take part in informal talks between 15-18 countries scheduled
for Mexico.

The talks, which South African officials said would take place on
August 31-September 1, are aimed at thrashing out differences between
developing and developed nations ahead of the WTO meeting.

``There are going to be extremely difficult negotiations but I think
we are well prepared,'' he told reporters.

``What we are saying is that the world economy cannot progress if we
carry on in a situation where the industrial and agricultural
potential of the developing world is blocked out of the world
economy.''

There is rising hope that a new trade round will be launched at the
WTO meeting after the last attempt in Seattle during 1999 collapsed in
bitter recriminations between rich and poor nations, and the United
States and Europe.

India, which will play a key role in determining the stance of
developing nations in Doha, has expressed strong reservations. It has
said there should be no new round unless implementation of measures
agreed to help developing nations earlier -- like phasing out textile
quotas -- is resolved.

Developing nations also want a review of anti-dumping laws which they
say are used unfairly by Washington to block cheap imports.

``We are absolutely certain that if no negotiations take place we'll
be far worse off as developing countries because what will happen is
existing trade blocs will merely strengthen their relationships,''
Erwin said.

``Those that get left out will suffer quite badly.''