Govt is failing farmers - DA

2005-02-01 20:08

Cape Town - The government is not doing enough to protect South Africa's agriculture and textile sectors from cheap imports and unfair foreign competition, Democratic Alliance leader Tony Leon said on Tuesday.

In a speech prepared for delivery at Tulbagh in the Western Cape - extracts from which were sent to Sapa - he called for a "cautious and judicious" raising of import tariffs to protect these industries.

"The government is not doing enough to help farming communities survive through one of the most difficult periods the agricultural sector has ever experienced.

"Grain farmers, for example, are struggling to deal with the impact of cheap imports flooding the market. The DA is in favour of free trade, but we also insist on fair trade.

"The rules of the World Trade Organisation (WTO) and the Agreement on Agriculture at the Uruguay Round allow for higher tariffs in special circumstances.

"Currently, import tariffs are only about 2% on wheat and 13% on maize. These tariffs could theoretically be raised to levels of 72% for wheat and 50% for maize, according to Grain SA, though we would have to be cautious and judicious in doing so."

Leon said a balance had to be struck between the need to keep prices low for the sake of the consumer, and the need to help the country's farmers.

Protective import tariffs vs consumer prices

"What is disturbing, however, is that the department of trade and industry has been slow to respond to recent requests to use the WTO rules to protect South African industries such as textiles from unfair foreign competition.

"The department seems unaware of its powers to use free trade agreements to help South African producers - or unwilling to use them."

The DA would submit parliamentary questions to Trade and Industry Minister Mandisi Mpahlwa asking why the department had not invoked the WTO rules, and whether it intended to do so.

Leon's remarks come a day after a Grain SA meeting in Bellville near Cape Town, at which Western Cape grain farmers said unless government imposed higher tariffs on imported agricultural products, their sector was likely to collapse.

Earlier on Tuesday, the United Democratic Movement said it did not support calls for higher protective import tariffs.

UDM finance spokesperson Martin Stephens said imposing these would have a ripple effect and cause price increases throughout the South African economy.

"This will place an additional and unwarranted burden on consumers who will have to deal with such price increases," he said in a statement.

- SAPA