WTO admission won't
be open sesame
Ray Smuts
DO YOUR homework thoroughly but do not expect dollar signs to start flashing immediately when doing business with China - newest progeny of the World Trade Organisation - warns Cape Chamber of Commerce and Industry c.e.o. Albert Schuitmaker.
Guest speaker at the annual luncheon of the South African Association of Freight Forwarders' Western Cape branch, Schuitmaker was responding to a question by this correspondent when he cautioned against over-confidence in trading with the Chinese.
"We as a Chamber found the Chinese are only interested in exporting Chinese goods, they are not interested in importing," he said to nods of agreement from the audience.
"I am not saying the Chinese don't import but they will certainly put up barriers where they do not necessarily believe in importing."
Schuitmaker said the WTO make-up was characterised by rules, regulations and agreements and while many obstacles were removed through attaining membership of the body, "thousands" of barriers still remained.
Referring to the recent WTO gathering in Qatar, where China and Taiwan became the newest members, Schuitmaker said talks had virtually collapsed because free trade as envisaged by many was not taking place.
"Many countries have put their barriers up to prevent free trade and what we have is some attempt by trading blocks to create a free trade environment. The European Union has an agreement which is moving toward free trade but always between economic blocks."
Professing to being bemused at the hue and cry over globalisation, he said: "Globalisation is like oxygen, it's around you and you cannot do without it any longer, yet the masses out there believe it is something one can switch off and on at a later stage."
Aside from a strong turnout by the freight forwarding community, the function was attended by representatives of National Ports Authority, Departments of Trade and Industry and Economic Affairs, South African Revenue Service and the Association of Shipping Lines.
