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tralac’s Daily News Selection
The selection: Friday, 11 March 2016
Convened today:
In Nairobi: an export strategy development meeting for Kenya. For updates follow @IndustryKE, @ExportsKenya, @IndustryKE, @AdanMohamedCS, @Kiptoock or #ExportsKE
In Arusha: EABC team undertakes a review exercise on EAC Common External Tariff to submit harmonized positions. For updates: @EABCArusha or #EABCCETReview
Regional Integration Policy and Strategy 2014-2023 (AfDB)
This Regional Integration Policy and Strategy for 2014-2023 is the blueprint for the Bank’s long-term support to Africa’s economic integration. It builds on the experiences of the Bank and other development partners in implementing regional integration programs. Anchored on the Bank’s Ten Year Strategy for 2013-22, it reflects the continent’s priorities as expressed in the many integration initiatives. Furthermore it distills current thinking on the economics of integration coming from the Bank, other multilateral development banks, the African Union Commission, the Economic Commission for Africa as well as think tanks, researchers and academics.
Extract: Many RECs are in “mixed” neighborhoods, with fragile states grappling with challenges of reconstruction and transformation, alongside island economies and middle income countries, which also require innovative instruments to support their participation in regional programs. Yet, the operational structures of many RECs hinder their capacity to design, coordinate and monitor the integration process in a way that addresses different country challenges. Strong political support for regional integration has to be translated into action by ratifying protocols and affording sufficient attention to regional integration in national development plans. This gap illustrates national capacity and budgetary constraints and the resulting tension in supporting national or regional programs, as well as national concerns about uneven gains and losses. [Download]
Starting today, in Lusaka: AU-RECs-UNECA-AfDB-NEPAD-ACBF Joint Coordination Meeting
Starting, on Monday: Rwanda to host the inaugural African Transformation Forum (New Times)
A preview: Full agenda for SADC Council of Ministers (SARDC)
According to a draft agenda, the council on 14-15 March will consider and approve the budget for the 2016/2017 financial year and review progress made in implementation of the previous budget plan. The budget for 2015-2016 was US$79.4m. It is estimated that more than 70% of the SADC budget comes from International Cooperating Partners — a situation which compromises the ownership and sustainability of regional programmes. In this regard, the 2016/2017 SADC budget is expected to consider alternative financing modalities that will allow the region to take full control of its development plan. Another key issue for discussion is the finalization of an action plan of the recently adopted SADC Industrialization Strategy and Roadmap 2015-2063, as well as implementation of Phase 1 of the strategy, which covers the period 2015-2020. The strategy that is being implemented in three phases aims to promote industrialization by ensuring that member states harness the full potential of their vast and diverse natural resources.
Debating the future of monetary integration in Sub-Saharan Africa: Mauritius ATI seminar
Participants’ views converged on the prerequisites for monetary integration such as more trade and economic integration. The exposure of potential monetary union members to large asymmetric shocks and the risks associated with large current account imbalances were recognized as sources of concern. Some participants noted that while monetary unions - such as the CFA zone - have contributed to price stability, there are more gains to be achieved on growth and economic development from trade integration, than perhaps from monetary integration. They discussed whether Africa should focus more on those integration objectives. [Reposting: ECOWAS convergence workshop]
Continental Free Trade Area Negotiating Forum: update (UNECA)
The main outcomes of the meeting were: i) Adoption of the draft rules of procedure of the negotiating institutions, including the CFTA-NF, which will be provisionally applied pending endorsement by the Committee of Senior Officials and African Ministers for Trade; ii) Election of a temporary bureau which is composed as follows: Chair - Egypt, 1st Vice-chair - Senegal, 2nd Vice-chair - Cameroon, 3rd Vice-chair - Kenya, Rapporteur – Botswana; iii) Adoption of tentative dates for the 2nd meeting of the CFTA-NF, scheduled from the 18 to 22 April 2016 in Addis Ababa.
Presentations from the ECOWAS/UNCTAD stakeholder consultation on the African Continental Free Trade Area:
Opening statement (Dr Ekwow Spio-Garbrah, Minister of Trade and Industry, Ghana)
To a large extent, the successful implementation of the CFTA would depend on how well it meets the needs of the private sector. It is generally expected that the rules that African countries enact for the conduct of trade such as the CFTA are meant to be exploited by the private sector. Private sector engagement and sensitization on the CFTA is therefore critical at all levels. In this regard there should be a concerted drive to engage in high level consultations and sensitization with the private sector in the entire negotiation process of the CFTA and the public at large across the continent to ensure this will not be just another Addis-driven “top-down” political exercise to ensure the successful establishment of the CFTA within the time frames.
Scope of the CFTA negotiations, principles, objectives and institutional framework (Mr Bonapas Onguglo, UNCTAD)
Key challenges: Commitment to integration varies across countries. Some countries have not undertaken any liberalization within their respective RECs FTA. Accordingly if they cannot commit themselves to a smaller FTA, it will be difficult for them to commit to a CFTA. Some countries also remain sceptical of regional integration fearing domination by richer or more powerful states or ceding power to a supranational body.
With new passport, East Africa leads the way on integration - again (Daily Maverick)
The East African Community has launched its regional passport, replete with all necessary bells and whistles. It's a big step for the region, but unquestionably in the right direction. Why is southern Africa so slow in following suit? [The author: Simon Allison]
EALA enacts legislation on disaster risk reduction (EAC)
The passage of the Bill is a culmination of about two years of work during which time the Assembly has consistently advocated for it. Debate on the Bill, originally moved for second reading in August 2013, was halted following a request by the Council of Ministers to consult and consider its policy implications. At the same time, the move was to allow for pursuit of the ratification of the EAC Protocol on Peace and Security which among other objectives, provides for co-operation in DRR management and crisis response. The Protocol on Peace and Security has since been ratified by all Partner States. The next stage is the process of Assent by the EAC Heads of State in line with Article 63 of the Treaty for the Establishment of the East African Community. [Kenya and Tanzania in tussle over EAC court (The Star)]
SADC financial inclusion strategy workshop report (Finmark Trust)
FinMark Trust, in collaboration with the SADC Secretariat hosted a SADC financial inclusion strategy workshop in February 2016. The workshop which was represented by 14 countries was the result of the Report on Financial Inclusion, where the Ministers of Finance and Investment directed the SADC Secretariat to partner with FinMark Trust to develop a Regional Financial Inclusion Strategy. To this end, a draft strategy was developed by FinMark Trust and presented to SADC stakeholders on 11th and 12th February 2016 at Centurion Lake Hotel in Pretoria. At the workshop, inputs were obtained from stakeholders before finalisation of the strategy for submission to the Ministers of Finance for consideration. The report highlights the key messages from the two-day workshop. [Download]
Namibia: Trade deficit grows by 43%, highest since 2006 (New Era)
The just released Annual Trade Statistics Bulletin for 2015 shows that the country’s trade deficit grew as money spent on imports expanded by 6%, while export revenue dropped by 9.8%. The latest figures by the Namibia Statistics Agency indicate a trade deficit amounting to N$39.2bn compared to N$27.4bn registered in 2014. Key export markets for locally produced goods were Botswana (N$13.1bn), South Africa (N$11.4bn), Switzerland (N$8.9bn), Angola and Spain (both at N$2.6bn). The top commodities exported by Namibia were diamonds, copper cathodes, fish, copper ore and zinc. Namibia’s imports during 2015 were mainly sourced from South Africa (N$62bn), China (N$6.3bn), Switzerland (N$2.4bn), Botswana (N$2.3bn) and the Bahamas (N$2.1bn). [Minister expresses concern about over-dependence on food imports (StarAfrica)]
CAADP implementation: 2nd Permanent Secretaries Leadership Retreat (AU)
The 2nd PS CAADP Retreat comes at the pinnacle of the renewed launch of CAADP country implementation. Expected outcomes of the retreat include: to reflect on thematic and policy factors and issues presenting either opportunities or challenges to delivering on the Malabo commitments, validate the revised Country CAADP Implementation Guidelines, to solicit country perspectives on (i) the CAADP-Malabo Financing Architecture (ii) the technical networks arrangement to mobilise and make accessible expert support arrangements; and (iii) the revised CAADP Partnership architecture.
Cultural goods remain economic driver in digital age (UNESCO)
The study from the UNESCO Institute for Statistics, 'The globalisation of cultural trade: a shift in cultural consumption – international flows of cultural goods and services 2004-2013', takes an in-depth look at the export and import of cultural goods and services around the world. “Trade in cultural goods totalled $212.8bn in 2013, nearly double the amount in 2004,” said Silvia Montoya, Director of the UIS. “This is further evidence of the critical role cultural industries play in today’s global economy.” UNESCO found that China is now the lead exporter of cultural goods, followed by the United States. In 2013, the total value of China’s cultural exports was $60.1bn – more than double that of the US at $27.9bn.
10 practical steps to create an Emissions Trading System (World Bank Blogs)
This week, the World Bank’s Partnership for Market Readiness – jointly with the International Carbon Action Partnership – launched 'Emissions trading in practice: handbook on design and implementation', a new guide for policymakers that distills best practices and key lessons from more than a decade of practical experience with emissions trading worldwide.
Egypt lowers gas prices to steel manufacturers by 36% (Ahram)
Egypt lowered gas prices to steel manufacturers by almost 36%t to $4.5 per million thermal units with the hope of cutting the country's import bill, the industry and foreign trade ministry said in a statement on Thursday. The decision is estimated to save the country $1.1bn in foreign currency currently spent on importing billet (steel raw material) and raise production capacity to increase exports by $600m, said the ministry in the statement.
Administrator Gayle Smith: ‘US leadership in international development’ (USAID)
Finally, and this is a new and I think extraordinarily positive development, USAID is acting on the fact that our role as a development agency is also to bring analysis, solutions, and expertise to the mix when it comes to seizing the opportunities and tackling the challenges that confront our government every day and in every corner of the world. That means using our early warning systems to enable the U.S. to respond early to crises, sharing our analyses of state fragility and long experience with transitions to help shape effective policies, and garnering decades of experience in individual countries to help inform our next steps. Our challenge now is to build the systems to ensure USAID’s extraordinary foundation of knowledge is brought to the policy table with rigor and with regularity.
ACP, EU pave the way for a crucial Joint Council of Ministers meeting in Senegal (IDN)
Cecilia Malmström: 'EU trade priorities in 2016'
WBG, ISO partnership highlights how countries benefit from international standards
WTO Committee on Agriculture: statement by the Chair
Christophe Bellmann: 'Advancing LDC concerns in the post-Nairobi context' (Bridges Africa)
D. Ravi Kanth: 'WTO case exposes Barack Obama’s hypocrisy' (Livemint)
Japan to support South Sudan customs service
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