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tralac’s Daily News Selection
The selection: Tuesday, 21 June 2016
Launching today: World Investment Report 2016
The World Investment Report 2016, examines international production by multinational enterprises (including sales, exports, employment and value added), as well as their ownership structures and control of affiliates. In a novel analysis, the report focuses on how policymakers can distinguish between "domestic" and "foreign" companies in a globalized economy and provides with a new framework for handling ownership issues in 21st century investment policymaking.
Starting today: Zambia’s Trade Policy Review
The fourth review of the trade policies and practices of Zambia takes place on 21, 23 June 2016. The basis for the review is a report by the WTO Secretariat and a report by the Government of Zambia. [Note: the documentation will be available later today on tralac’s www]
The quest for a Pan-African Investment Code to promote sustainable development (ICTSD)
The legal nature of the PAIC is still uncertain. It might end up as a binding instrument applicable in all AU member states, as it might be adopted as a model treaty serving as a guide for individual member states’ IIA negotiations. The pros and cons of these two options constitute a political question and AU member states need to decide upon the issue with their relevant stakeholders. Whatever the outcome, the elaboration of the PAIC has allowed African countries to deliberate on their vision of IIAs and to build awareness amongst themselves regarding the broader implications of foreign investment as a tool for sustainable development. The PAIC thus endows Africa with a voice in the international debate on the future and reform of the investment regime. Further, its strong emphasis on SDGs bears the potential for the PAIC to become a model for innovation outside of Africa. [The analyst, Makane Mbengue, is attached to the University of Geneva]
G20 trade and investment measures: OECD-WTO-UNCTAD joint summary
The WTO’s fifteenth trade monitoring report on G20 trade measures shows the application of new trade-restrictive measures by G20 economies increased compared to the previous reporting period, reaching the highest monthly average registered since the WTO began its monitoring exercise in 2009. In the period under review (mid-October 2015 to mid-May 2016), G20 economies applied 145 new trade-restrictive measures, or an average of almost 21 new measures a month. In the same period, G20 economies implemented 100 measures aimed at facilitating trade, averaging just over 14 per month. Since 2009, a total of 1,583 trade restrictive measures were imposed by G20 countries, and only a quarter of these measures have been removed. These restrictions cover over 6% of all G20 imports and 5% of global imports.
WCO/UNIDO declaration on effective implementation of the WTO’s TFA (pdf)
Paperless trade facilitation in Ghana by 2017 (STARRFM)
Ghana currently has a semi-paperless status where a chunk of the process involved in the import, export and transit of goods is carried out manually. The objective to go completely electronic forms part of the third phase of the Ghana National Single Window (GNSW) project being undertaken by the Customs Division of the Ghana Revenue Authority. The project is expected to reduce the cost and time of international trade by 50% and 25% respectively over the next five years. Government yesterday launched the GNSW Strategy and Roadmap (pdf) which contains a range of recommendations to government on the phased rollout of the project over the next five years. [The Ghana Trade Hub www] [Uganda set for Single Window Deadline]
Accelerated Programme for Economic Integration: tertiary education mobility (GoM)
Under the Trade in Services pillar, APEI members have agreed to consider tertiary education mobility as one of the areas of cooperation with a view to promoting the development of educational services in the region. In this regard, they have agreed to carry out a Study on the Tertiary Educational Sector at the regional level, building on separate case studies in each of the APEI countries (Malawi, Mauritius, Mozambique, Seychelles, Zambia). To address the constraints identified in pillar 3 (Trade in Services), the focus is to ease the movement of different categories of service providers in order to address the poor allocation and mismatch of skills demand and supply initially among the five APEI countries and subsequently across African national borders. [Nkululeko Khumalo: How to leverage FDI for service sector development in African countries?]
MEFMI conference: Central Bank governors hail Chinese involvement (IPPMedia)
The adoption of Chinese Yuan by the IMF as part of its special drawing rights basket of currencies early this year and China’s massive aid to Africa have significantly realigned the continent’s economies towards the Asian nation, regional central bank governors said. The Executive Director of the Macro-economic and Financial Management Institute of Eastern and Southern Africa which facilitated the forum, Caleb Fundanga, said there is need for the region to put in place supportive measures to encourage use of the Yuan amid growing global demand for the currency.
A reposting: 'BRICS-Africa: the hype is gone, but much remains' (Simon Freemantle, Standard Bank)
Does a Brexit matter for South Africa? (SAIIA)
Brexit, should that be the result, will have profound consequences for the UK’s status as a financial centre and gateway to the European Union, for its trading relations with the world, and for its global influence. So what do the most recent economic figures tell us about the importance of Britain to the South African economy? [The analysts: Asmita Parshotam, Cyril Prinsloo, Elizabeth Sidiropoulos]
Statement by the Western Cape Economic Development: the SADC-EU EPA trade agreement
ZIMRA suspends new import rules (The Herald)
The Zimbabwe Revenue Authority has suspended the implementation of Statutory Instrument Number 64 of 2016 which sought to tighten screws on imports of basic commodities following protests by travellers at Beitbridge Border Post on Saturday. Zimra had started implementing the new regulations, which made the importation of food items, building material, furniture, toiletries and cooking oil among other things virtually impossible without prior notice to travellers. There was chaos at Beitbridge Border Post on Saturday afternoon, with travellers resisting the seizure of the imported goods, which now require people to have permits. Sources said travellers teamed up and started singing revolutionary songs denouncing Zimra. Normalcy only returned after anti-riot police had been called in.
Zimbabwe's imports decline 12% in the five months to May (The Herald)
Total imports in the five months to May amounted to $2,07bn, a decline of 12% compared to the same period last year. According to the latest Zimstat data, there was, however, an increase of 16% in month-on-month imports in May to $413,6m, from $356,4m in April when the payment delays due to depleted nostro balances were more severe. Imports in the five months were weighed down by a cocktail of import restrictions placed on selected products by Government, weak industry demand for raw materials, weakness in the South African rand against last year, a decline in the value of petroleum products due to lower crude oil prices and troubles in the external payment systems. Analysts expect the import pattern to show further decline at half year showing the full effects of the priority list.
Counterfeits, a thorn in Tanzania’s industrialisation dream (IPPMedia)
Commissioned by the Confederation of Tanzania Industries, the study reveals that counterfeiting in Tanzania has grown by at least 32% as an educated estimate in 2008 would put counterfeit products at 18% of Tanzania’s merchandise trade. The study also describes Dubai as a new centre of counterfeits where re-packaging and labelling is done after production in China. CTI says counterfeits cost the government losses of between 15-25% of total domestic revenue annually, and between 540bn/- and 900bn/- annually in tax evasion related to counterfeits and substandard goods.
SADC proposes new strategic plan on politics, defence, security
The recommendation emerged at an extraordinary meeting of the senior officials of the Organ on Policy, Defence and Security of the SADC held in Gaborone last week, according to an SADC statement received here Sunday. The meeting brought together Ministers of Foreign Affairs, Defence and Interior, Chiefs of Armed Forces, police commanders and heads of security services of the 15 SADC member countries. [SADC's water and energy workshop: address by President Ian Khama]
West Africa: SWAC members discuss 2017-18 work programme priorities (OECD)
The Secretariat also intends to promote innovative approaches to improve regional food and agricultural policies, in particular in the field of urban food insecurity and food value chains. Building on the 2015-16 work on cross-border co-operation, the Secretariat proposes to focus the 2017-18 programme on border agglomerations. It is also envisaged to give greater attention to political dialogue to support Members' and Partners' strategies. All the proposed activities will be supported by an integrated communication strategy centred on the sharing of knowledge and best practices. [Monitoring regional trends in West Africa: OECD SWAC newsletter, 5-20 June]
The Kenyan financial transformation, 2000-2015 (World Bank)
Giant leaps in financial inclusion driven by private sector innovation and supportive regulation have made Kenya a case study in financial sector development. A new book brings together a group of academics to investigate the myriad of dimensions of and issues that lie beneath Kenya’s much-touted financial inclusion success story. [Kenya: Monetary policy implementation and volatility transmission along the yield curve (IMF)]
On the central role of small farms in African rural development strategies (World Bank)
Using examples from farmers' maize and rice fields, and comparisons with Asia, this paper examines why the set of technologies promoted to date have produced localized successes rather than transformational change. The paper explains the limitations of alternative policies that are not centered on small farms. It provides indicative examples of how resource-management technologies can supplement seed-fertilizer technologies to speed an African Green Revolution.
Tanzania: NMB boss calls on government to ban raw cashew exports
OECD Agricultural Policy Monitoring and Evaluation 2016: highlights, recommendations
A ChAFTA innovation: protecting public welfare regulation through joint treaty party control (pdf, Columbia FDI Perspectives)
The recent FTA between China and Australia aims to protect public welfare measures through joint treaty party control. This Perspective assesses the FTA’s mechanism in the context of broader efforts to rebalance investor protection and state sovereignty, and to recalibrate interpretive authority between arbitral tribunals and treaty parties.
India Development Update: manufacturing, services, urban consumption keep economy on growth path (World Bank)
Zimbabwe: EOI for beef and leather value chain project implementation (pdf, AfDB)
Poland identifies SA as a ‘priority trading partner’ with India and China (Business Day)
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