South African trade negotiators have responded cautiously to a surprise proposal by French President Jacques Chirac that rich countries temporarily suspend subsidising agricultural exports to African countries until the Doha trade round is completed.

Speaking at the Franco-African summit in Paris last week, Chirac admitted that cheap imports were destabilising African markets – a marked departure from France’s traditional defensive stance on the issue.

Indeed, the European Union (EU) – in which France has a leading position – has provided the strongest opposition to agricultural-trade reform in the World Trade Organisation (WTO) negotiations currently under way in Geneva.

It obstructive stance was once again demonstrated last week at a WTO meeting in Tokyo, Japan, where the EU, together with the host nation, dug in its heels over farm-trade restructuring.

Department of Trade and Industry trade negotiator Xavier Carim told Engineering News Online that it was, thus, difficult for South Africa to respond coherently to the Chirac statement until details were formally presented, adding that it appeared at odds with current European Commission policy.

Making the matter all the more murky was the fact that the Commission itself appeared to have been that caught off guard by the statement, with a Brussels officials being quoted as saying that they too were waiting for more details.

This said, Carim admitted that, at first blush, Chirac’s proposal seemed “interesting” and possibly even in line with South Africa’s calls for an elimination of trade-distorting exports subsidies.

In addition, it could be an important signal that France was finally acknowledging that export subsidies were causing significant problems for developing countries.

However, Carim cautioned that, by making the offer exclusively to African countries, the Chirac proposal could also prove divisive, especially given that many other developing countries suffer at the hands of farm protection and export subsidisation.

Global media reports also questioned whether Chirac’s proposals would gain support internationally, as well as whether they would in fact help Africa.

Analysts said the proposal for a moratorium on export subsidies to Africa was largely symbolic and that it was an effort to deflect criticism that Europe’s farm policy was crippling African farmers by dumping cheap sugar, dairy products and meat onto the market.

For his part, Carim also questioned what impact a moratorium would have on those African countries that were net importers of farm products.

However, he acknowledged that any signal by France and Europe of a willingness to move away from protectionism should be welcomed, particularly given that the trade negotiators appeared set to miss a March deadline for agreeing a framework for agriculture reform negotiations.

“Therefore, we eagerly await a formal indication of what is on offer, and we will also be monitoring the level of support the proposal gains from Europe as a whole,” Carim concluded.