VZCZCXRO2920
PP RUEHAG RUEHAP RUEHDE RUEHDF RUEHGI RUEHHM RUEHLZ RUEHMR RUEHPA
RUEHPB
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