Portfolio Committee Trade & Industry

Transcription

1 Introductory Layout THE TRADE POLICY & STRATEGY FRAMEWORK The Trade Lawyers View Portfolio Committee Trade & Industry Approach & Institutional Matters 17 March 2010 SA Leader or Laggard? Regional Rumpus Hilton E. Zunckel Where is the law in all this? Lets Litigate [please] Managing Director Data is desired Trade Law Chambers Cape Town 2 Good Work Dr. Mzukisi Qobo Are we on the right track? The universe we inhabit as human beings is becoming a common home that shows growing disrespect for the rigidities imposed on humanity by national boundaries 3 4

2 Where is TRADE s natural home? Do we have trade in the right place? Foreign Affairs and International Trade The middle nation concept Economic Development [?] 5 6 Tiptoe Round the Region Does SA have a Leadership role? SACU Agreement SADC Protocol on Trade If countries like India, Brazil, China and South Africa would come to the negotiating table with open minds and ready to make tough decisions, a conclusion to the Doha round could be in reach. Other regional (EAC) Why so tentative? Where is the regional leader? [10 March 2010] United States Trade Representative - Ron Kirk: Member of President Obama's Cabinet and the principal trade advisor, negotiator and spokesperson on trade issues 8 [?] 9

3 SACU - small but cheeky. Oh no - SA colonialist are here again! Textual but Ineffectual SACU Agreement (2002) Articles 13 and 41 Tribunal & Unfair Trade Practices Any dispute regarding the interpretation or application of this Agreement [..] shall be settled by an ad hoc Tribunal. The Council shall [..] develop policies and instruments to address unfair trade practices between Member States. These policies and measures shall be annexed to this Agreement. Where ARE these things? 12 13

4 Dispute Settlement MiA! Threats are real and present A power-based to a rule based system of international diplomacy. What good are rights if we do not enforce them? WTO Dispute Settlement Understanding [?] SADC Tribunal & Trade Panels [?] SACU Tribunal & Unfair Trade Practices [?] The Jewel in the Crown [?] (Prof. John Jackson 10 year review) So what s up my China? Unfair Technical Standards Citrus One of the local industry's main competitors is China, where government subsidises the automotive glass industry by up to 50%. The EU has been blocking SA citrus exports for over 10 years! [Financial Mail 8 February 2010] Citrus Black Spot (CBS) is a cosmetic not a phytosanitary disease. The INDUSTRY estimates that R135 million per annum could be saved if the EU abided by international trade law. Glass is landed here at ridiculous prices. We can't compete! 16 People these guys belong in court. 17

5 Is the Boss Concerned? A 1st for SA in WTO Dispute African agriculture has suffered for decades from the huge subsidies provided to developed country agriculture. President Jacob Zuma - World Economic Forum, Cape Town 10 June The WTO Ag Subsidy Dispute THE BASIS OF THE CASE The South African Maize Sector contended that: It has been denied the position in the world markets for agricultural commodities that it expected based upon the US undertakings to limit their levels of Domestic Subsidies in the WTO. What does that mean? In the absence of maize subsidies the US would move from the world s biggest corn exporter (50 60 million tons annually) to being a net corn importer! THIS COST SOUTH AFRICA 4.4 Billion Rand over the dispute period.? 20 21

6 Para 118 Home Page A useful tool? SA s Dispute Participation Some lessons learned: An early warning mechanism is absent. Initiative from the industry as a process driver. Superb linkages between industry and Government needed absent of an institutionalised arrangement. Networked to counterparts overseas. Value of third party participation recognized Home Page Some suggestions Why must we pay for this? Imports by South Africa (KG & Rand) Product : UHT or long life milk in containers holding 1li or less, exceeding 6 per cent 2007 (2 months) Where is the tariff book (Jacobsens)? Where are the trade agreements (!)? What about updates and progress postings (EPA)? Why is the site not searchable? Exporters value Unit Value Uruguay China 142,758 R 515,039 R 3.61 TOTAL 142,758 R 515,039 R 3.61 Trade data/statistics payment fair? 24 value Unit Value France UK Brazil Netherlds Thailand 25 23,694 R 2 R 23,696 R 178, ,190 R 7.52 R 4.00 R 7.52 value Unit Value 14 R 79,276 R ,553 R R ,150 R 61,182 R 180 R 92, , R 5.08 R 2.66 R ,952 R 459,850 R ,754 R 1,365,838 R value Unit Value 5 R 111,629 R ,468 R R ,634 R 955,583 R 8.56

7 Thank you for your kind attention 26