Although trade chiefs insist a breakthrough is still possible, some fear that this could be the end of the talks. Cotton is one commodity that will be hit hard by the failed talks. “This is a setback for the developing world,” said the CEO of Cotton SA, Hennie Bruwer. Cotton SA echoes the disappointment expressed by other African cotton producers.
Bruwer said cotton has a special dispensation under the agricultural talks at Doha because so many African farmers grow it. African growers vowed to pursue their campaign against subsidies paid to US cotton farmers, which they say shut them out of the market and keep them in poverty.
Bruwer said South African producers share these sentiments. “One of the main reasons why the cotton industry has gone down is because farmers here can’t compete with subsidised cotton farmers,” he said, adding that he fears the talks will never reach a stage where subsidies are stopped.
Prof Chris Blignaut of the Department of Agricultural Economics at the University of Pretoria believes that the talks will resume. “Because of the presidential race in the US, politicians want to keep mum on Doha,” he said. Prof Blignaut added that in the interim the developing world can benefit from other trade agreements such as the African Growth and Opportunity Act. Under this agreement certain agricultural products have zero tariffs. But he said the downside is that because it is a US initiative, this agreement can be stopped at any time and some products can be removed from this list.
Johan Pienaar, economics and trade director at Agri SA, said amid the failed talks SA agriculture has to continue functioning in a heavily distorted trade scenario. “Agricultural trade worldwide is a mess,” he said, adding that South Africa needs a dedicated import tariff policy and proper levels of protection for
farmers. – Wilma den Hartigh
