South Africa is resisting further trade liberalisation in the ongoing multilateral trade talks. Tariffs in South Africa are among the lowest for developing countries, and as SAs chief trade negotiator, Xavier Carim points out, South Africa has taken deep cuts as a result of the 1994 Uruguay round. The US and EU have turned down South Africas requests. Carim says that South Africa will not sign a trade deal that compromises industry.
But the most effective way to ensure that trade liberalisation leads to efficiency improvements is if a country removes its trade barriers against all countries. Trade is a positive sum activity; both trading partners gain, and the pursuit of the gain provides the motivation for exchange. Trade liberalisation allows goods produced more efficiently in other countries to enter SA to the benefit of all its consumers.
Source: Mathabo le Roux, SA seeks flexibility from Doha trade talks, Business Day, December 8, 2008.
For text: http://www.businessday.co.za/articles/frontpage.aspx?ID=BD4A900780
For more issues on trade: http://www.freemarketfoundation.com/issues.asp?id=29
FMF Policy Bulletin/ 09 December 2008
