Madam Speaker, with regard to this question which deals with World Trade Organisation, WTO, negotiations, I would like to start by saying that South Africa is indeed a strong proponent of multilateralism, and our core objective in the Doha Round of the WTO negotiations has been to strengthen the global rules-based trading system in a manner that supports the development aspirations of the developing countries.
In our view, an equitable and balanced trading system that fully takes into account developmental prospects would enhance the legitimacy and stability of that trading system. South Africa supported the launch of the round on the basis of the mandate of the Doha Declaration that aimed to place the needs and interests of developing countries at the heart of its work programme. This approach and mandate has guided our participation in these negotiations.
Many milestones and deadlines have been missed in this complex negotiating process and it is not immediately clear when the date for the next WTO Ministerial meeting will be set. There is indeed some impetus towards convening the meeting in July, next month, but many issues still need to be resolved to ensure that the meeting of the trade Ministers has the essential elements for a successful outcome.
It is our view, which is shared by many other WTO members, that while it is of great importance that we conclude the negotiations as soon as possible to achieve the objectives agreed to in Doha, this must not be at the expense of the developmental content of the round. In this respect, we require significant progress in the agricultural negotiations as this is the measure of the development content of the round, given that most developing countries rely on agriculture for their development.
Recent reports in the international media suggest that the slow progress in negotiations on the industrial tariffs is holding up the conclusion of the round. But this is not the case. Agriculture remains the key to the round, setting both the pace and the mission for the other important issues for negotiations.
While important progress has been achieved in the agricultural negotiations, several key issues are outstanding. These include securing meaningful reductions in trade-distorting domestic subsidies in the developed countries so as to open up production and trade opportunities to more competitive farmers in the developing world, including those in Africa. This has become more urgent with the emerging global food crisis and, paradoxically, easier to achieve because global food prices are at record high levels. We also require an outcome that offers greater clarity and precision on the level of tariff reductions in agriculture.
Currently the range of outstanding issues and loopholes built into the negotiations give little comfort that the outcome of tariff reduction negotiations will result in significantly enhanced access to the markets of developed countries for agricultural products of export interest to developing countries. Progress on these agricultural issues at the next ministerial meeting is vital, and will determine progress in other negotiating areas, particularly industrial tariffs.
In the industrial tariff negotiations, also referred to as Non-Agricultural Market Access, Nama, negotiations, South Africa has played an important role. Since the Hong Kong Ministerial Conference in December 2005, we have convened the Nama 11 group of developing countries to work towards ensuring an outcome that supports our industrial developmental objectives.
In this respect, we recall and reaffirm the principle of less-than-full reciprocity because we have witnessed attempts to have it inversed with a range of demands that would result in developing countries, including South Africa, being required to accept tariff reduction commitments in excess of those to be borne by the developed countries. These demands are inconsistent with the Doha development mandate, and cannot be a basis for the conclusion of the round.
Indeed, I must say that South Africa is unique in the industrial tariff negotiations because of the historical injustice committed during the apartheid era that led to our country being classified as a developed country in the Uruguay Round. This means that South Africa and other members of the Southern African Customs Union, SACU, maintain levels of industrial tariffs that are uniquely lower than would otherwise be the case. The application of the agreed tariff-cutting formula in this round would result in deep cuts in applied industrial tariffs on a scale that is greater than the tariff cuts that would be made by other WTO members in either Nama or agriculture.
While we welcome the recognition by the WTO members that the situation of South Africa and Sacu is unique, this recognition should be meaningfully translated into agreement to extend the full scope of flexibility for South Africa and Sacu. Indeed, we are prepared to make a positive contribution to the negotiating outcome, but this must respect the developmental principles of the round, and it must be proportional and support our industrial policy and employment objectives.
One of the most positive aspects of the round has been the emergence of alliances and groupings that collectively seek to achieve development- supporting outcomes. These alliances have made an historic contribution to the global trading system, and have positively shifted the negotiating dynamic in favour of the developing countries. We would, therefore, expect that these alliances continue to demonstrate their strength in unity at the next WTO Ministerial meeting and, in this regard, we will continue to work closely with the G20, the Nama 11 and the Africa group. Thank you very much. [Applause.]