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tralac’s Daily News selection
The selection: Tuesday, 16 February 2016
Diarise? Unleashing the next engine of growth: a services trade agenda beyond Doha and the TPP (webstreaming, 7 March, Washington)
Roberto Azevêdo: ‘How trade can serve Nigeria’ (WTO)
Nigerian farmers should not have to compete with the treasuries of developed countries. So ending these subsidies is very significant – it will help to level the playing field in agriculture markets to the benefit of farmers and exporters in Nigeria. Eliminating these subsidies was actually one element of the UN's new Sustainable Development Goals – so it is a big achievement that we delivered this, just three months after the goals were agreed! The decision will also help to limit similar distorting effects associated with export credits and state trading enterprises. And it will provide a better framework for international food aid – maintaining this essential lifeline, while ensuring that it doesn't displace domestic producers.
In Nigeria today the average time it takes to export goods is around 20 days, while imports take around 30 days. This pushes costs up so that many businesses can't afford to buy and sell goods internationally. So these reforms could make a big difference here. By making trade flows easier, this Agreement can also support Nigeria's economic diversification. WTO research suggests that the Agreement could help developing countries to increase the number of new products exported by as much as 20% and it could help them to enter 30% more foreign markets. It is also worth noting that the Trade Facilitation Agreement is actually very flexible. It provides developing countries such as Nigeria with a lot of leeway to adopt reforms at a pace which suits you, and it provides practical support to help in doing so.
Nigeria committed to free trade, says Buhari (ThisDay)
Meanwhile, Minister of Industry, Trade and Investment, Dr Okechukwu Enelamah said the country understood the implications of the multilateral trading system adding that it would be keen to deriving benefits from the global system. He said the way forward was to engage the WTO rather than be isolated. The minister said the federal government was currently working on a blueprint that would improve the investment climate and significantly boost its profile on the ease of doing business. He added that subsequent improvements in trade flows among other reforms would be measurable. He said government would further strengthen its relationship with the private sector.
Kenya's exports spike on weak shilling, tea (Daily Nation)
A new department of commerce and international trade at the Ministry of Industrialisation will this week meet stakeholders to discuss how to exploit the opportunities in value-added exports. “I met over 150 stakeholders with three things on the table; validation of a trade policy, an export development strategy and a position on the Economic Partnership Agreements (EPAs),” newly appointed Permanent Secretary Chris Kiptoo told Smart Company. He said his department is set to deliver a new set of rules on taxes, subsidies, import and export in the next four months to boost trade. Mr Kiptoo said he would focus on a trade policy to address the imbalance in Kenya exports against imports. The gap between exports and imports narrowed significantly last year thanks to drop in oil prices.
Featured tweets on Kenyan trade issues: @EABCArusha: Are EA nations losing out on EPA agreement signed btwn EU & EAC? Member states’ parliament are required to endorse the deal by end of June. @WilliamsRuto: The balance of trade between Kenya & Japan, favours Japan by 97%. Japanese investors need to set their hub in Kenya.
Angola adopts measures to minimise drop in oil prices (MacauHub)
The measures are contained in a memorandum that was presented at the joint meeting of the Economic Commissions and Real Economy of the Council of Ministers. The document, which must still be approved by a Council of Ministers meeting, includes a series of measures to be taken to increase domestic production, promote the export of goods and services in the short term, increase non-oil tax revenue, optimise public expenditure and streamline the import of goods and services.
Five countries being squeezed by currency pegs (Bloomberg)
Only on the streets of cities like Cairo, Abuja or Tashkent can you gauge just how much pressure developing countries are under to ease controls on their currencies. Individuals and businesses in five nations across central Asia, the Middle East and Africa are paying anywhere from 4% to 136% more than official exchange rates to get their hands on dollars, according to a Bloomberg survey.
Related: Ratings agency Moody’s maintains stable outlook for Kenya (Business Daily), Barry Eichengreen: 'China’s exchange rate trap' (Livemint)
Bridging the gap: communications for the Continental Free Trade Area (Bridges Africa)
Improving communication with the private sector must be addressed from a variety of angles. The AUC’s initiatives to establish a Trade Observatory and African Business Council, as well as regional and national business councils and chambers of commerce, have a significant role to play. So, too, do civil society organisations and NGOs that can help strengthen lines of communication between the private sector and the negotiators. Creative and novel approaches, like online forums and crowdsourcing tools that make gathering information and communicating across a vast continent much easier, are also needed. Along with improving communication with the private sector, strengthening communication between the RECs and the AUC will also be necessary in bringing the CFTA to fruition. The AUC is tasked with the difficult challenge of coordinating and facilitating successful negotiations. Accordingly, significant focus has been placed on strengthening the AUC's capacity, including a considerable mobilisation of resources on the part of development partners towards hiring technical experts to establish a dedicated CFTA Unit at the AUC. [The author: Luke Warford]
Can rules of origin in sub-Saharan Africa be harmonised?: a political economy exploration (DIE)
Throughout the paper, we draw lessons and implications for African countries negotiating the CFTA. Overall, we are concerned that developed-country norms for negotiating rules of origin are taking root in the TFTA, and that these are likely to become the default approach in the CFTA. Our concern hinges on the restrictive nature of these norms and the high institutional / organisational capacities required to implement them. The former concern relates to what we see as the broader drift of African trade politics away from openness to the world – as expressed in trade and industrial policies that would favour integration into GVCs – and towards more inward-looking approaches favouring RVCs. The second concern relates to weak governance capacities in African states generally, in relation to the implications of adopting developed-country approaches to rules of origin. [The authors: Peter Draper, Cynthia Chikura, Heinrich Krogman]
Also from DIE: 'Making retail modernisation in developing countries inclusive: a development policy perspective'
Namibia: Locals pay 30% more for chicken compared to SA (New Era)
While Namibians pay less than South Africans for beef, canned fish and lamb, locals are still paying more for dairy products, maize meal, eggs, pasta, pork, poultry and wheat flour. In fact, Namibians pay approximately 30% more for chicken compared to South Africans. This is according to a Retail Price Monitoring Report being produced by the Namibia Trade Forum, which since 2013 records and monitors retail prices for locally manufactured products that receive some sort of government support measure. The support measures are in the form of Infant Industry Protection, Market Share promotion schemes and quantitative support measures, such as quotas. [Download the NTF survey]
Zimbabwe: New import regime on the cards (The Herald)
Importers who bring consignments of product without conformity certificates will be denied entry into Zimbabwe under a new import regime taking effect next month as the country intensifies measures to safeguard consumers from sub-standard imported products. The new measures come into effect on March 1 under the Consignment Based Conformity Assessment programme which ensures that all listed imported products meet quality, safety, health and environmental standards in line with WTO agreements.
Rwanda: Strengthening quality management systems for enterprises (COMESA Business Council)
"In the next one year, we want to see more than Rwanda’s corporate market sourcing their products locally. This project is timely as it addresses the core gaps of our local industry provides a solution on improving competitiveness, quality control and consistency of supply of our products into regional and international markets.” This was said by the Permanent Secretary in the Ministry of Trade and Industry, Mr. Emmanuel Hategeka ahead of the Local Sourcing for Partnerships training workshop that is to take place on the 16- 19th February, 2016 at the Serena Kigali, Hotel. [COMESA boosts SMEs to foster local sourcing by corporate firms (New Times)]
East Africa ICE discussions: extracts from draft communique
The meeting also noted that there are emerging threats to the rapid economic progress in the region. These include declining commodity prices and a slowing global economy and reduced growth prospects in China. The large current account deficits recorded by some countries, combined with low savings rates, leaves them dependent on external capital flows. This raises a macroeconomic risk to those countries given that international development assistance to the region has generally declined in the last two years and foreign direct investment has plateaued since 2012.
The meeting noted with concern the fact that Eastern Africa has not yet successfully diversified its production and export patterns. This leaves some countries in the region vulnerable to adverse changes in commodity prices or unexpected developments in major trading partners. In light of the changing global environment and the need for sustainable job creation, member States are encouraged to explore domestic and regional economic policies that drive innovation, raise productivity, create new industries and advance the structural transformation agenda. [Experts call for intra-regional trade to sustain eastern Africa economies (New Times)]
Mozambique: Simplification – it begins with you Mr Director (SPEED)
I have recently been observing an export process from Beira. Before the export product can even enter the port the exporter must follow a series of procedures. The product must be inspected. I agree, it should be. But does it need to be inspected twice, by two separate departments? In order for the first inspection to take place the exporter must provide the provincial government with a detailed list of items being exported. This makes sense, otherwise how can the inspectors check the cargo? What happens next makes no sense. [The author: Carrie Davies]
Tanzania: No plans to kick out experts, says minister (Daily News)
The government does not intend to expel foreigners working in the country but is focused to realign the employment regulatory framework in implementing legislation on employment. The Minister for Home Affairs, Mr Charles Kitwanga, told business leaders in Dar es Salaam at the weekend that the government was committed to support development of the private sector as the engine of growth and would not come up with contrasting laws, policies and regulations.
Kenya replaces Mombasa port management amid smuggling probe (Reuters)
South Africa: Ports authority to spend R800m on security upgrades (Business Day)
South Africa launches fuel cell feasibility study (SAnews)
African Labour Ministers to meet in Zambia (SAnews)
Low copper prices cripple Zambian towns (multimedia, BBC)
Indian pharma companies target West African market (New Kerala)
Burundi: report of the EALA's Committee on Regional Affairs and Conflict Resolution on PALU's petition
Swaziland: WCO invites SRA’s application to E53.1 million trade fund (Swazi Observer)
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