WORLD TRADE  
ORGANIZATION  WT/MIN(09)/ST/107 
2 December 2009 
 (09-6310) 
MINISTERIAL CONFERENCE 
Seventh Session Geneva, 30 November - 2 December 2009 Original:   English 
 
  
SWAZILAND 
 
Statement by the Honourable Senator Mrs. Jabulile Mashwama
 
Minister of Commerce, Industry and Trade  
   Many countries, both developed and developi ng have been badly affected by the Global 
Economic and Financial crisis th at will have an adverse impact  on poverty eradication, employment 
and achievement of the Millennium Development Goals (MDGs). Swaziland like most developing 
countries has not been spared from this crisis. Th e country has experienced a decline in economic 
activity. Specifically for Swaziland, the impact of the global economic meltdown has manifested itself 
in a slowdown in production, lower export earnings , declining remittances, rise in unemployment 
levels, poor performance of the tourism sector and slowing of private sector investment.   
 For instance, the textile sector has been affected and the impact is severe as companies mainly 
target the African Growth Opportunity Act (AG OA) market in the USA. The slumping demand in 
developing country export markets has resulted in mu ltiple closures and downsizing of textile firms, 
resulting in loss of jobs and exacerbating the alrea dy high levels of unemploym ent. These jobs have 
been mainly occupied by vulnerable groups  such as women and the youth who are mostly 
breadwinners in peri-urban and rural ar eas where dependency ratios are very high. 
  Furthermore, the global financial and ec onomic crisis comes on the heels of the 
unprecedented food, fuel and commodity crises that le d to a decline in production in the agricultural 
sector. Rising costs of farm inputs and the in-availab ility of trade finance has led to sharp declines in 
farm incomes and has further exacerbated rura l poverty. Swaziland as an agro-based economy has 
been hit hardest in this respect. Other affected sectors include wood and pulp industry and the tourism 
sector.  
  I believe that the WTO can contribute to a r esolution of both the short-term consequences and 
the underlying economic and commercial weaknesses th at this crisis has revealed. Its mandate 
provides for the use of trade as a tool for growth and development and at least since the launch of the 
Doha Development Round in 2001, a commitment to place the needs and interests of developing 
countries at the heart of the Doha Work Programme . Swaziland believes that all countries, especially 
the most vulnerable amongst the WTO Membership  should benefit from the increased opportunities 
and welfare gains accruing from the multilateral trading system. In other words, the WTO must 
contribute to development and povert y alleviation through fulfilment of its commitments to a fair, 
equitable, balanced and transparent rules-based mu ltilateral trading system. If the system fails to 
achieve this, it falls short of  its main objective and the opportunity to correct the imbalances created 
by previous negotiating rounds.      Swaziland is therefore deeply concerned by the lack of meaningful progress in the DDA 
negotiations, and particularly to th e inadequate attention paid to th e development issues in the Doha 
Work Programme.  I urge Members to intensify th eir efforts and exercise th e necessary political will WT/MIN(09)/ST/107 
Page 2  
 
  to conclude the Doha Round by 2010. Indeed, th e successful conclusion and implementation of a 
development oriented Round at this  time of economic uncertainty would send a positive message that 
international co-operation remains the optimal soluti on to tackle global challenges. It would, inter 
alia, update and strengthen the WTO’s rules and di sciplines as a benchmark ag ainst protectionism and 
allow Members to share in sustainable growth. 
 
 Swaziland stresses the importance of preserving and building on progress achieved so far in the DDA negotiations, and cautions against attempts to  reinterpret or change the agreed mandates or 
deviate from the agreed principles in the negotiations  through the selective re-sequencing of issues or 
re-opening of stabilised parts of modalities texts or to backtrack on commitments 
 
 My delegation associates itself fully with the statements made by the Minister of Republic of Egypt on behalf of the African Group, the Minister of Kenya on behalf of the ACP Group of States and the Minister of Gabon on behalf of th e Informal Group of Developing Countries. 
 
 In particular, I would like to reiterate the following calls: 
 
• Doha Mandate : that the current Doha Development Agenda should deliver the 
developmental objectives as spelled out in th e Doha mandate and later reaffirmed in 
various other WTO fora; and furthermore, th at there should be an interface between the 
developmental objectives of the DDA and the achievement of the Millennium Development Goals (MDGs)  
 
• Agriculture:  Agriculture remains the backbone for most developing country 
economies, including Swaziland.  Thus the outco me of the Agriculture negotiations is a 
primary determinant for the level of amb ition in other negotiating areas such (NAMA). 
That the agreed modalities should take into  account the need for policy space to allow 
small economies like Swaziland to pursue ag ricultural policies that are supportive of 
their own food security and poverty concerns and commensurate with their 
development needs.   
 
• NAMA:  that the final outcome of NAMA ne gotiations should reflect developmental 
interests of developing countries and should  help to promote development of their 
industrial capacity. Further, that any agreed modalities recognize that these countries do 
not need to match or reciprocate in full tariff-reduction commitments by other 
participants.In particular, the special situation of the Southern African Customs Union (SACU) which is composed of one devel oping country (South Africa), three small 
vulnerable economies (SVEs) namely Bots wana, Namibia and Swaziland and one LDC 
(Lesotho), should be taken into account in the proposed cuts in tariffs and the requested flexibilities.  
 
• Preference Erosion : that the issue of preference erosion be addressed by means of 
trade-based solutions through longer im plementation periods as well as necessary 
accompanying financial and capacity buildi ng support to help address supply side 
constraints, promote diversification and ad apt to a liberalized trading environment 
during the transition period.   
 
• Trade Facilitation : Highlight the special developmental challenges faced by 
Landlocked Developing Countries (LLDC’s) and the ensuing serious difficulties of 
effective integration of their economies into  the multilateral trading system. Emphasize 
that the final outcome in the Trade fac ilitation negotiations should contain binding 
commitments on freedom of transit, expedited movement and release and clearance of  WT/MIN(09)/ST/107 
 Page 3 
 
 
  goods, as well as the respect for agreed mandates on the provision of Technical 
Assistance and Capacity Building physical infrastructure; and 
 
• Aid for Trade: In conclusion,  my delegation believes that Aid for Trade is critical in 
addressing the supply side constraints, capac ity building and trade-related infrastructure 
for developing countries. There is need to secure adequate, additional, predictable and 
sustainable resources to finance adjustment costs arising from trade liberalization and 
enhance the competitiveness of developing co untry exports in the global markets. I 
therefore call on our development partners not  only to maintain current levels of 
(Official Development Assistance) ODA transfers to developing countries, but to further raise their commitments as well as to fulfill their pledges under the Aid for 
Trade Initiative.   
 
 Recommendations of the WTO Aid for Trade Task Force should be implemented effectively, consistently and coherently. I s upport the strengthening of an effective monitoring mechanism for Aid 
for Trade as well as the role of the WTO in mon itoring both Aid for Trade flows and its impact. 
 
 The need to enhance support for the Aid for Tr ade Initiative is even more important in the 
aftermath of the global financial and economic crisis as it could be instrumental in the recovery 
process and in assisting developing countries to build  resilience by supporting their diversification 
efforts.  
__________