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tralac’s Daily News Selection
The selection: Wednesday, 28 September 2016
World Trade Report 2016: levelling the trading field for SMEs (WTO)
The World Trade Report 2016 examines the participation of SMEs in international trade. In particular, it looks at how the international trade landscape is changing for SMEs, where new opportunities are opening up and old challenges remain, and what the multilateral trading system does to ensure inclusive participation of firms in global markets. Some key facts and findings: [The core chapters: SMEs in international trade: stylized facts, Dynamics of internationalization processes of SMEs, Trade obstacles to SME participation in trade, Cooperative approaches to promoting SME participation in trade, Conclusions] [Related: Yesterday’s WTO Public Forum: highlights; IMF’s World Economic Outlook, October 2016: ‘Global trade: what’s behind the slowdown?’]
The Global Competitiveness Report 2016-2017 (WEF)
One of the most improved nations in sub-Saharan Africa is Rwanda, which rises 6 places to 52. It is closing in on the region’s traditionally most competitive economies, Mauritius and South Africa, although both these countries register more modest improvements, climbing to 45 and 47 respectively. Lower down the ranking, Kenya climbs to 96, Ethiopia holds steady at 109 while Nigeria slips three to 127. There is some sign of convergence in the competitiveness of the world’s largest emerging markets. China, on 28, remains top among the BRICS grouping although another surge by India – which climbs 16 places to 39 – means there is now less of a gap between it and its peers. With both Russia and South Africa moving up two places to 43 and 47 respectively only Brazil is declining, falling six places to 81. [Related: Political uncertainty pushes down ranking of SA’s institutions, India improves in Global Competitiveness Index, UAE most competitive nation in Arab world]
AGOA commentaries:
Christopher Wood: ‘Making the best of AGOA through export-promotion policies’ (AfDB): The failure of African trade relations to diversify beyond commodities during the period of AGOA demonstrates that the problems African exporters face go well beyond tariffs. Governments need to help, but their interventions must fulfill two criteria. Firstly, they must be quick to roll out and quick to make an impact. Secondly, they must continue to make a contribution even after AGOA ends. The worst thing that can happen now is to launch into an endless process of crafting AGOA strategies, which, when finally rolled out, will have a shelf life of only a couple of years before expiry of AGOA. Focusing on developing core trade capacity – like standards, export costs, and establishing strong intermediaries – will boost AGOA implementation and remain relevant in whatever new regime replaces it.
Tom Perez (US Secretary of Labor): ‘Reaching farther together for inclusive growth in Africa’ (State Department): This year’s forum was the first time ministers responsible for labor and employment and ministers responsible for trade and investment have met under AGOA to promote coordinated policy action. Each minister came a long way to join us. Now, together, we can go farther. Bringing trade and labor ministers to the same table brings us one step closer to a vision of inclusive economic growth, where all of us work together toward an outcome that serves the interests of businesses, workers, communities, and nations as a whole. That is why the worker rights eligibility component of our AGOA law is so important. Strong and increased trade, coupled with effective protection of worker rights, is a sturdy framework upon which inclusive growth can be supported.
Rep. Karen Bass (D-Calif): ‘Building on AGOA, strengthening US-African trade ties’ (The Hill): Second, we should work closely with our African partners to raise standards in key substantive building blocks that have the greatest potential to unlock value for business and investors. These should include fundamental areas of trade policy, including market access, trade facilitation, data flow and intellectual property, transparency, and anti-corruption, labor, and the environment. Third, we should determine what form our future trade arrangements with our African partners should take. Possibilities could include free trade agreements with a single country, a regional economic community, or a combination of the two; a mega-regional free trade agreement building on existing African free trade agreements; or allowing African countries to join existing or renegotiated free trade agreements.
Cameroon goes it alone with controversial EU trade deal, angers regional partners (African Arguments)
“Cameroon’s signing of the agreement constitutes a great threat to regional integration,” says economist Dr Ariel Ngnitedem. “It might destroy regional integration especially if the EU fails to reach a regional agreement with the CEMAC countries.” Ngnitedem says that by signing the EPA unilaterally, Cameroon has broken the ‘common external tariff’ rule under which tariffs on goods entering a customs union are the same regardless of which specific country the goods are entering. He also suggests other countries in the region may now be tempted to do the same by entering alternative agreements with other partners such as China. Many politicians in Cameroon, however, are dismissive of these concerns.
AfDB seeks investors for $7.6bn Tanzanian railway line (Bloomberg)
The Tanzania line will run from Dar es Salaam port to Rwanda’s capital, Kigali. Two other lines will branch off to Musongati in Burundi and to Mwanza port on the shores of Lake Victoria to service Ugandan shippers. The line to Kigali is expected to ultimately connect to the eastern Democratic Republic of Congo. Export-Import Bank China may lend Tanzania $7.6 billion to finance the railway, the government said in July. Chinese investors will be among those invited to the AfDB financing roadshow, Negatu said. AfDB holds no “short-term financing view” on the railway line, although most investors would prefer debt repayment periods of as long as 15 years, according to Negatu. The line “can be amortized over 100 years,” he said. “It will be profitable -- this is a project for the next century.”
Kenya: Mombasa’s push for cargo levy sets stage for row with shippers (Business Daily)
Through its Finance Bill 2016/17 currently undergoing public participation phase, the Mombasa county government has been lobbying industry players to accept its plan to collect Sh5,000 ($50) per 20-foot container and Sh9,000 ($90) for a 40-foot container as part of transport infrastructure development levies. The county also intends to impose a penalty of Sh50,000 ($500) on shipping lines that fail to pay the levy. Yesterday, Shippers Council of Eastern Africa chief executive Gilbert Langat said the proposed levy amounts to double taxation as shipping lines already pay taxes to the national government through the Kenya Revenue Authority. Last week, Mombasa Transport executive Taufiq Balala said the county would impose the levy to raise cash for funding road projects and rehabilitate the existing ones. “It should be noted that 5,000 trucks which collect cargo from the Mombasa port daily damage our roads as well as cause traffic congestion,” he said. Of the 1,200 kilometres of roads in the county, he said, only 300 kilometres were tarmacked, adding that was why the county sought to the funds for infrastructure development. [Sh17bn windfall for Kenya marine insurers]
Abidjan-Lagos Corridor Highway Development Project Study (pdf, AfDB)
The Abidjan-Lagos Corridor is a subset of the longer Dakar-Lagos Corridor, which is part of the Trans African Highway Network within the ECOWAS region. The Abidjan to Lagos section is the eastern section of the latter and on an east-west coastal axis of the region spanning five participating member countries, namely, Cote d’Ivoire, Ghana, Togo, Benin and Nigeria. It covers a distance of 1,028km and eight border crossings. The corridor currently supports approximately 75% of the trade activities of the subregion and considered as the spine for multi-modal trade logistics. The objective of the Abidjan-Lagos Corridor Highway Study is to undertake all the necessary studies on the hard and soft aspects necessary for the effective implementation, operations, and economic development of the corridor, primarily between the two nodes i.e. Abidjan and Lagos. The new highway will be a six-lane (3-lane dual) carriageway highway.
Hajia Aishat Abubakar: ‘Why Nigerian products are shunned globally’ (Vanguard)
The lack of an institutional accreditation body in Nigeria has hindered the access of goods and services to other countries of the world, the Minister of State for Industry Trade and Investment, Hajia Aishat Abubakar has said. Abubakar, speaking at the opening of the 7th African Accreditation Cooperation conference, hosted by the Standard Organisation of Nigeria, said the establishment of a national accreditation body would boost the access of goods and services of small scale to other countries.
Cecile Fruman: ‘Exploring links between trade, standards, and the sustainable development goals’ (World Bank)
The equation is simple. Standards are integral to international trade, and trade is a critical component of achieving the sustainable development goals. Then it follows that progress must be made on international standards in order for trade to contribute to the SDGs. Partnerships - and closer cooperation and support, especially for developing countries - will be needed to maximize the opportunities that exist.
Nigeria-India Business Forum: update (Sify)
Vice President Hamid Ansari said at the Nigeria-India Business Forum in Abuja: "Over 100 Indian companies have made Nigeria their base to operate in West Africa, employing the largest number of Nigerians after the federal government, and covering diverse sectors of the economy. It is estimated that the Indian investments have exceeded $10bn so far, and another $5bn are committed. Indian investments are in diverse sectors such as communications, power, pharmaceuticals, healthcare, automotive sector and oil, among others". The next Joint Commission Meeting will take stock of the ongoing cooperation in trade and investments.
Kenya: Sugar shortage causes retail chain trouble with regulators (Business Daily)
An acute sugar shortage in the domestic market and the resulting surge in retail prices have put Nakumatt Supermarkets in the eye of regulators who have launched investigations into the retail chain’s dealings in the sweetener. The Sugar Directorate, yesterday fired a letter to Nakumatt, accusing it of hoarding and rationing sugar to create an artificial shortage in order to increase prices. The agency, which is the sector regulator, says in a letter to Nakumatt that the retailer is using its dominant position in the market to earn ‘‘unjustified abnormal profits’’ from sugar.
Central Africa: AfDB in talks with CSOs on Africa’s transformative agenda
The African Development Bank’s consultations with civil society organisations in the Central Africa region are underway in Yaoundé, Cameroun. The 26-28 September discussions aim at enhancing cooperation between at regional and country levels to effectively support the Bank’s Regional Member Countries in delivering development programs. Earlier this month, the Bank held talks with CSOs in West Africa in Dakar, Senegal, to discuss its agenda for Africa in the next 10 years. By the end of 2016, the Bank will have hosted a total of five consultations with civil society groups on how to jointly deliver on its roadmap for Africa’s transformation.The consultation for Southern Africa region will be held in November 2016 in Johannesburg while the East Africa consultation will take place in early December 2016 in Nairobi. Tunisia will host the North Africa regional consultation workshop on 14-16 December.
FAO’s Committee on Agriculture: update
Another keynote speaker at today’s COAG opening, Joachim von Braun, Director of University of Bonn’s Center for Development Research, underscored the need for scientific innovation in agriculture to go hand-in-hand with policy reform. "Agriculture and food systems are transforming, and that must be supported by a sound cooperation between science and policy," von Braun said. He told participants that for this purpose, an International Panel on Food, Nutrition and Agriculture should be established to assist the international community in the same way as the Intergovernmental Panel on Climate Change "helps guide global climate policy". [Committee on Agriculture, 26-30 Sept: documentation] [BRICS Agriculture Ministers: SA statement]
Rwanda: Central bank remains positive on projected 6.0% growth for 2016
Zimbabwe’s CZI: Key sectors in economy set to open
Zimbabwe: National roads conditions survey funding lagging - Zinara
Kenya: More Chinese firms get mega construction deals
ICAI: UK Aid’s contribution to tackling tax avoidance and evasion
South Africa’s trade minister: ‘SA economy still attractive for investment’
SA’s economic cluster: MTSF Q1 progress report
South Africa: Mantashe backs signing FIC amendment
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