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tralac’s Daily News Selection
The selection: Friday, 22 July 2016
Featured blog, by tralac’s Trudi Hartzenberg: ‘How can the CFTA facilitate trade in services?’ (UNCTAD)
The trade in services agenda in African integration, compared to the trade in goods agenda, can be described as nascent. African integration has been characterised by a predominant focus on trade-in-goods disciplines, with the import tariff commanding centre stage. Several regional economic communities (RECs) are, however, currently occupied with trade in services negotiations. And there is growing interest in services sector development and trade in services in many African countries. This presents an excellent opportunity to leverage an African services agenda (encompassing services sector development as well as trade in services), to support development outcomes, from the platform of the CFTA. In short, services and especially infrastructure services matter for Africa's sustainable development. How can we start connecting the dots in the CFTA to facilitate trade in services and support development outcomes?
Africa Regional Integration Index: Report 2016 (UNECA)
The Index is made up of five Dimensions, which are the key socio-economic categories that are fundamental to Africa’s integration. Sixteen Indicators (based on available data), which cut across the five Dimensions, have been used to calculate the Index. The Index 2016 report covers Member Countries from the eight Regional Economic Communities recognized by the African Union. The Dimensions and Indicators chosen for the Index are based on the Abuja Treaty and its operational framework. Regional integration is cross-border and multi-dimensional. Indicators that have a cross-border interaction, and where verified, quality data is available, have been used to make up the Index. Future editions of the Index will grow in scope as more data becomes available.
Economic Development in Africa Report 2016: debt dynamics and development finance in Africa (UNCTAD)
Between 2006 and 2009, the average African country saw its external debt stock grow 7.8% per year, a figure that rose to 10% per year in 2011–2013 to reach $443bn or 22% of gross national income by 2013. Several African countries have also borrowed heavily on domestic markets, the report finds. It provides specific examples and analyses of domestic debt in Ghana, Kenya, Nigeria, the United Republic of Tanzania and Zambia. In some countries, domestic debt rose from an average 11 per cent of gross domestic product in 1995, to around 19 per cent at the end of 2013, almost doubling in two decades. “Many African countries have begun the move away from a dependence on official development aid, looking to achieve the Sustainable Development Goals with new and innovative sources of finance,” Dr. Kituyi says. The report argues that African countries should look for complementary sources of revenue, including remittances, which have been growing rapidly, reaching $63.8 billion to Africa in 2014. The report discusses how remittances and diaspora savings can contribute to public and development finance.
Selected declarations (pdf): Declaration of the Least Developed Countries Ministerial meeting, Ministerial Communiqué of the Landlocked Developing Countries, Ministerial Declaration of the Group of 77 and China
Selected summaries (pdf): Global Commodities Forum summary: breaking the chains of commodity dependence, UN Cluster on Trade and Productive Capacity: thematic note on trade facilitation
Selected presentations (pdf): Developing natural ingredients sectors in nine Southern African countries: presentation by Cyril Lombard (CEO, PhytoTrade Africa), Breaking new ground for biodiversity-based products: presentation by Martha K Kangandjo (Eudafano Women’s Co-operative in Namibia)
Kenya launches trade information portal linking investors and trade opportunities (The Standard)
Kenya on Thursday became the first East Africa economy, and latest in Africa after Malawi, to launch a Trade Information Portal which it hopes to link investors to trade opportunities and fix obstacles that impact on its ease of doing business. The portal contains information on which goods are prohibited, restricted, and other non-tariff measures; the entire catalogue of applicable tariffs linked to commodity classification is also available. Procedures and requirements for processing licenses and various permits and samples of application forms will be downloaded on the website. Traders will be able to access legal requirements supposed to meet when importing or exporting respective goods and alert traders on duties, fees and exemptions that are applicable to their commodities.
Twin, TMEA move to make coffee sector a more lucrative business (New Times)
As part of the project, from July 19- 20, 2016, Twin and TMEA held a validation workshop on coffee quality control through best practices at wet mills across East Africa. Participants in the workshop included Coffee Board Representatives from East African countries, coffee buyers from USA and Europe and representatives of coffee cooperatives under the project.
EABC Dialogue: Remove hurdles to trade, Tanzania urged (The Citizen)
The barriers, according to members of the East African Business Council, include delays in clearing goods in Tanzania, corruption and theft of goods at the Dar es Salaam Port, high fees charged by some regulatory agencies, an influx of substandard goods and value-added tax charged on ancillary services on goods. Moreover, different standards by quality assurance agencies within the region also impede trade. "Let's find solutions to the challenges to make our integration fruitful," EABC vice chairman Felix Mosha said at a Public-Private Dialogue. "The long time of clearing cargo in Tanzania is attributed to complicated documentary and compliance activities as business persons require 10 documents to import or export to Tanzania without them it is impossible to clear goods" Mr Omar explains. He argues that these 10 documents attract different costs estimated to be double of the average costs incurred in other sub-Saharan countries. [High taxes to blame for rise in airfares, EAC states told, Why EAC should work as a bloc to negotiate trade deals, The Central Corridor Transit Transport in a nut shell]
East Africa has a lesson for SADC in formalising cross-border trade (Business Day)
Ultimately, regardless of whether the import bans imposed by Zimbabwe continue or are rescinded, informal trade will continue. Governments in Southern Africa should look to counterparts on the continent who face similar conditions and challenges, and have made significant strides in regularising trade across borders. Doing so would allow both governments and traders to reap the benefits.
Zimbabwe to ban haulage trucks to boost National Railways (Nehandara Radio)
Responding to questions during the inaugural Infrastructure Conference at the ongoing Mine Entra expo in Bulawayo yesterday, Transport and Infrastructural Development Minister Joram Gumbo said if allowed to ply the country’s roads, haulage trucks would continue damaging roads. He said if implemented, the S.I. would go a long way in protecting the National Railways of Zimbabwe. [Mining industry expected to recover]
Brexit commentaries: Ana Gallo-Alvarez: ‘Legal aspects of the implications of Brexit for UK Africa trade’, ICTSD: ‘Experts weigh Brexit’s implications for Africa’, Peg Murray Evans: ‘Return to the Commonwealth? UK-Africa trade after Brexit’, Jan Hofmeyer: ‘Brexit and its implications for African integration’
WTO launches new annual statistical publication (WTO)
The WTO launched a new annual statistical publication – the 'World Trade Statistical Review' – on 21 July. The publication contains an in-depth look at the participation of developing economies in world trade, analysing in particular the role of least-developed countries. It also provides a summary of the main developments in trade-policy making, highlighting the latest data on WTO members’ use of trade-restrictive and trade-facilitating measures. These analytical chapters are complemented by over 50 tables providing comprehensive data on various facets of world trade in goods and services.
IMF’s World Economic Outlook Update: uncertainty in the aftermath of the UK referendum
Ethiopia’s road to regional integration (World Policy)
Algeria’s Sellal calls for speeding up the creation of CFTA (Algeria Times)
WTO agriculture talks: Chair urges shift from reflection to action (ICTSD)
India sets up panel for implementing WTO’s trade pact (Economic Times)
Tonnes of dal from Mozambique will reach Indian markets after Modi’s visit (Scroll India)
FDI surges after 'Make in India', up 46% at $62bn (Economic Times)
India’s poultry sector cries foul as US chicken legs loom large (The Hindu)
FACT SHEET: President Obama’s commitment to global development (White House)
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This post has been sourced on behalf of tralac and disseminated to enhance trade policy knowledge and debate. It is distributed to over 350 recipients across Africa and internationally, serving in the AU, RECS, national government trade departments and research and development agencies. Your feedback is most welcome. Any suggestions that our recipients might have of items for inclusion are most welcome.
