Cablegate: Doha Round Suspension: South African Reaction

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PP RUEHAG RUEHAP RUEHDE RUEHDF RUEHGI RUEHHM RUEHLZ RUEHMR RUEHPA
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DE RUEHSA #3082 2081416
ZNR UUUUU ZZH
P 271416Z JUL 06
FM AMEMBASSY PRETORIA
TO RUEHC/SECSTATE WASHDC PRIORITY 4786
INFO RUCNWTO/WORLD TRADE ORGANIZATION COLLECTIVE
RUEHRC/DEPT OF AGRICULTURE WASHDC
RUCPDC/DEPT OF COMMERCE WASHDC

UNCLAS PRETORIA 003082

SIPDIS

SIPDIS

DEPT PLEASE PASS USTR
USDOC FOR 4510/ITA/IEP/ANESA/OA/DIEMOND

E.O. 12958: N/A
TAGS: ETRD EAGR ECON WTO SF
SUBJECT: Doha Round Suspension: South African Reaction

1. (U) Summary. While expressing deep disappointment, South
African official and public reaction to the suspension of the Doha
Round negotiations has been balanced and non-accusatory. End
Summary.

2. (U) In a statement issued July 26, the South African government
expressed deep regret at the indefinite suspension of the Doha
negotiations. The SAG described the suspension as "a serious
setback" that will be "a source of growing instability in the global
trading system." The core issues, the statement said, "revolve
around agriculture and the inability or unwillingness of key members
to redress . . . highly distorting trade measures." This failure,
if unchecked, constitutes a breach of many laudable commitments.
The international trading system will confront dangers: loss of
legitimacy, irrelevance as bilateral trade arrangements proliferate;
an intensification of litigation and disputes; and the growing
threat of protectionism.

3. (U) The statement continued that "it is our view that a great
deal of technical and political work has been accomplished . . . We
should not lose sight of the fact that the WTO membership has never
been closer to such an ambitious outcome as it is now." The
statement concluded urging members to recommit themselves to the
Doha Round and to explore options that could lead to an early
resumption on the negotiations. (The full statement is available at
http://www.info.gov.za/new/index.html.)

4. (U) In comments to the press, South Africa's chief trade
negotiator, Xavier Carim, described the suspension as a "serious
setback" that would have a huge opportunity cost. He added, "It is
not useful to enter into a blame game but the core issues from the
beginning have been US domestic support and EU market access
offers." In public comments, organized business and agriculture
organizations, trade union federation COSATU and independent
commentators all expressed sharp disappointment at the suspensions,
but none singled out the U.S. as the key culprit.

5. (U) Editorial comment has been balanced. Business Day wrote that
"The US will no doubt bear much of the blame for the failure of the
talks but the Bush regime has pushed for free trade. In truth
neither the developed nor the developing world came to the party . .
. A vital opportunity to right the wrongs of the global economy has
been lost. There are no winners here, only losers." The Star of
Johannesburg said that while the U.S. should take its far share of
the blame, "the Bush administration is not the only culprit. The EU
is equally guilty. Both succumbed to strong lobbies at home. The
breakdown in the talks benefits protectionists and will make the
poor poorer." The Pretoria News noted that the EU blames the U.S.
"but the underlying problem is that powerful vested interests in all
countries oppose free trade."
BOST

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