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ECA-OECD Mutual Review of Development Effectiveness in Africa
This year’s Mutual Review of Development Effectiveness in Africa: Promise & Performance highlights the significant progress on the part of African governments and their international partners in delivering their commitments to improve political and economic governance, increase domestic resource mobilisation as well as human development dimensions.
The annual Mutual Review of Development Effectiveness in Africa (MRDE) is a joint exercise in mutual accountability undertaken by the UN Economic Commission for Africa (ECA) and the Organisation for Economic Co-operation and Development (OECD).
The exercise dates from an initial request in November 2002 by the NEPAD Heads of State and Government Implementation Committee which underscored the need for a mutual review of development partners in terms of their commitments to Africa. Africa’s Ministers of Finance, Planning and Economic Development reaffirmed the value of the exercise in March 2012.
The 2015 MRDE edition was launched at the African Economic Conference in Kinshasa 2-4 November 2015.
The MRDE reports provide an in-depth review of the implementation of commitments in 19 individual topics organised around four broad pillars:
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sustainable economic growth (industry, trade, agriculture, infrastructure, the private sector, environmental sustainability and climate change);
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human development (education, health, food security and gender equality);
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good governance (political governance, economic governance and peace and security);
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financing for development (domestic public resources, foreign direct investment, development assistance, external debt and climate finance).
Under each topic, the report addresses 4 questions:
i) what are the main commitments by Africa and its partners;
ii) have these been delivered;
iii) what results were achieved; and
iv) what are the key future policy priorities.
The report focuses on commitments made by political leaders collectively as distinct from national governments individually. The approach is to look at overall performance, recognising that there is large degree of variation between individual countries.
Key features of the report include:
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strong ownership by African leaders;
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joint character (undertaken by the ECA and OECD);
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comprehensive coverage;
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symmetry (by reviewing commitments by both Africa and its partners);
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strong evidence base ( relying heavily on use of empirical data);
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linkages between delivery, effectiveness, and future priorities;
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accessibility (report is concise and its written style is accessible to both senior policy makers and a wider audience);
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established track record as a report commanding confidence and support of all parties.
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Curtain falls on 10th African Economic Conference in Kinshasa
Leaving no one behind in the development agenda will require taking bold steps by African governments including strengthening the role of state in economic transformation to address poverty and inequality on the continent.
This is in addition to accelerating the process of structural transformation and making it more equitable, inclusive, resilient and sustainable, integrating the green dimensions.
This was underscored during the closing ceremony of the 10th African Economic Conference that opened on Monday and concluded Wednesday in Kinshasa, Democratic Republic Congo.
“The state should play a critical role in the transformation of economies. It has to be visionary, provide leadership in planning and execution and intervene when markets fail,” participants said in a joint statement issued at the end of the three-day conference held under the theme “Addressing Poverty and Inequality in the Post-2015 Development Agenda.”
Addressing poverty and inequality, they argued, is central to achieving Agenda 2030 and the African Union’s Agenda 2063.
Policymakers, donor organizations and international economic policy planners agreed that nurturing of strong and inclusive developmental states and transformational leadership were essential for planning, implementing and monitoring development programs.
They also emphasized the need for bold steps to diversify the economies away from primary commodities to avoid the challenges associated with natural resources overdependence.
In the Kinshasa Consensus, the economic experts have underscored using agriculture and the extractive sectors as the linchpin of economic transformation.
Agriculture, they argued, remains a major source of livelihoods for the majority of African poor and still remains the core of the employment and income generation for most of the African economies.
“It is therefore imperative to pursue an agriculture-led industrial development as it provides much needed capital,” the Kinshasa Consensus reads in part.
However, as countries transform they need to put in place measures to adequately manage the transition and especially counter the resulting special inequalities that are likely to occur.
In particular, governments need to prioritize bridging the current huge infrastructure deficits, especially electricity, as well as reduce African economies’ vulnerability to external shocks and domestic conflicts.
This, coupled with deepening decentralization and initiatives aimed at empowering sub-national jurisdictions to deliver basic social services to their communities, may be useful in addressing spatial inequalities.
Effective mobilization and efficient utilization of domestic resources were also underscored, as Africa should be able to use development aid to scale up domestic resources mobilization.
The annual conference is organized by the African Development Bank (AfDB), the United Nations Development Programme (UNDP) and the UN Economic Commission of Africa (ECA).
Nigeria validates the African Union Report on Banking Services in Nigeria
The one-day workshop for the validation of the report on banking services and Continental Free Trade Area (CFTA) Consultation ended on 30 October 2015 in Abuja, Nigeria.
The objective was to bring together various stakeholders in the Banking Services Sector to review the findings of the draft report and contribute to its finalization. The workshop was also an opportunity to consult on the state of implementation of the Action Plan for Boosting Intra African Trade (BIAT) and Preparations for the CFTA Negotiations in Nigeria. It was co-organized by the Department of Trade and Industry of the African Union Commission and the Federal Ministry of Industry, Trade and Investment of the Federal Republic of Nigeria
Representing the Trade and Industry Directorate of the African Union Commission, Mr. Nadir Merah, Head of Trade Division, expressed his sincere thanks and appreciation to the Government of the Federal Republic of Nigeria for the excellent partnership and unreserved support in conducting the study on Banking Services in Nigeria and organizing the workshop. He commended the Government for the steps taken towards preparation for the Continental Free Trade Area (CFTA) Negotiations and for the successful efforts towards diversification of the economy especially in development of the success sector. Special appreciation was extended to the Joint Europe-Africa Support Mechanism (JEAS-SM) for the financial support in conducting of the study.
Mr. Merah noted that the service sector could provide an alternative engine of growth, enabling some latecomers to development to “leapfrog” what has been seen as the traditional manufacturing route to development. The Services sector accounts for an average 49% of GDP in the low income countries and 47% in the LDCs. Despite the success stories services exports in Africa, the Head of Trade Division indicated that there is a big gap between the awareness of government in public sector and services operators and firms in the private sector, where integration in services is happening. “Raising awareness to overcome this “perception gap” in Africa is critical at the continental level as well as at the sub-regional and national levels, where the incorporation of Service Sector development into mainstream economic planning and development priorities remains lagging”, he emphasized.
In conclusion, he underscored that the success of Nigeria in exporting banking services comes at timely moment when the Heads of AU Heads of State and Government have endorsed a Decision to negotiate trade in Services and Trade in Goods concurrently. The fact that Nigeria has started national CFTA consultations is evidence that Africa is committed to its integration.
In his statement, Mr. Abubakar Aliyu, on behalf of the Executive Secretary of the Federal Ministry of Industry, Trade and Investment, expressed his appreciation to the African Union Commission for choosing Nigeria as case study of successful services exporters of banking services. “This study examines Nigeria’s trade in services policy context and in particular, the structure and performance of Nigeria’s Banking Sector with regards to the export of Banking Services”, he mentioned. He also indicated that Nigeria has already embarked on national CFTA consultations hence the workshop was another opportunity in the CFTA negotiations preparations. “At the end of this validation workshop, I expect you to jointly agree on a clear cut and very realistic Action Plan with agreed timelines towards the realization of a more viable Banking Sector in Nigeria expending to Africa and the world”, he concluded.
The workshop was attended by Representatives of Ministry of Trade and Investment of the Federal Republic of Nigeria, Nigerian Central Bank, Private Banks, Insurance companies, Nigerian Chamber of Commerce, Economic Commission for West African States (ECOWAS), West African Chamber of Commerce, Universities and other higher institutions of learning, among others.
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LDCs welcome progress on preferential treatment for services
Least developed countries (LDCs) welcomed on 2 November what they said were real efforts by members of the WTO to implement a pledge to provide LDC services and service suppliers with improved access to their markets.
Speaking on behalf of the group at a meeting of the WTO’s Services Council, Shameem Ahsan, Bangladesh’s ambassador to the WTO, said the group applauded the efforts so far to make the LDC Services Waiver decision a reality.
There is now “ample evidence on the table” to show WTO members are committed to advance services supply by LDCs, he said. But he cautioned that more needs to be done.
The Services Council also approved preferences that go beyond market access measures and are contained in notifications submitted to date.
The LDC Group also outlined a proposal for a possible decision on the services waiver at the WTO’s upcoming Tenth Ministerial Conference (MC10) in Nairobi, Kenya in December.
Earlier, Ambassador Martin Eyjolfsson, chairman of the Services Council, informed the membership that 17 WTO members have now submitted notifications of preferential treatment to LDC services and service suppliers.
The members that have submitted notifications are Canada; Australia; Norway; Korea; China; Hong Kong, China; Chinese Taipei; Singapore; New Zealand; Switzerland; Japan; Mexico; Turkey; the United States; India; Chile; and Iceland.
The chairman also told delegations that Brazil’s notification was expected to be circulated in the coming days. The European Union said it was confident it would be able to submit its notification soon, while South Africa said its notification was in the final stages of domestic approval.
The LDC Services Waiver
The LDC Services Waiver, adopted at the WTO Eighth Ministerial Conference (MC8) in 2011, allows non-LDC members to grant preferences to provide all LDCs greater access to their markets. For the first time, this decision allows WTO members to deviate from their Most-Favored Nation obligation under the General Agreement on Trade in Services (GATS).
Initial progress on implementation was slow, prompting WTO members to decide at the Ninth Ministerial Conference (MC9) in Bali, Indonesia, on 3-6 December 2013 to take further steps towards the operationalization of the waiver. The first preferences notification, from Canada, was received last March.
Assessment of notifications
The LDG Group provided detailed assessments for nearly all the notifications received to date. The group said the number of notifications received was “impressive” considering the scant progress made on the issue in the first three years after the waiver was adopted, and that it showed WTO members were committed to the integration of LDCs into the multilateral trading system.
In general, the LDC Group said a number of sectors sought by LDCs in their July 2014 collective request for the operationalization of the waiver were strongly reflected in the notifications and that all modes of services supply are variously featured. More than half of the collective request appears to be considered in the notifications, although more needs to be done to address requests related to non-market access concerns (visas, work permits, residence permits and recognition of professional qualifications and accreditation).
Some of the preferences set out in the notifications went beyond offers made in the Doha Round of services talks, or beyond the preferences pledged at a 5 February High-level meeting on the services waiver, the group noted. But clarifications are needed; some notifications do not spell out precisely how a preference will operate for LDCs, and few contained preferences beyond market access. Concerns were also expressed about what the group said were the lack of preferences covering mode 4 (cross-border movement of professionals).
Members that submitted notifications provided some initial clarification regarding the preferences offered and said they were prepared to discuss the concerns of LDCs bilaterally.
Nairobi ministerial
The LDC Group also outlined a proposed decision for the Nairobi Ministerial Conference related to the services waiver. The group proposed an extension of the waiver period to 15 years from the date of submission of each notification (rather than the current 15 year lifespan of the waiver as from the date of its adoption in December 2011), as well as a definition of the term “preferential treatment” in the sense of the waiver.
Australia said it was prepared to work with the LDC Group on drafting a “Ministerial Declaration on LDCs and Trade in Services” for Nairobi. Australia said members needed to look beyond the waiver and address issues such as supply side constraints and technical assistance in order to help LDCs benefit from the new market access opportunities.
Further information on the LDC Services Waiver and other issues related to services trade and LDCs is available here.
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Governments, business, academics and consumers reflect on 20 years of the TBT Agreement
Speaking at an event marking the 20th anniversary of the Technical Barriers to Trade (TBT) Agreement, Director-General Roberto Azevêdo said that the work in this area “often goes unseen and unremarked upon – but it is one of the key strengths of the multilateral trading system. Over the last 20 years it has become a well-functioning, dynamic mechanism for addressing matters of everyday commercial and social significance – from chemicals in toys, to carbon footprint labelling, to test procedures for medical devices and pharmaceuticals.”
“The figures tell the story. Since 1995, the TBT Committee has received 25,000 notifications of new or changed measures. This is the highest number for any committee at the WTO. And members have developed guidance on the application of the Agreement – which has helped with its practical and business-like application,” DG Azevêdo said.
“Over the years, the Committee has taken on an important pre-emptive function. Throughout its existence, the TBT Committee has dealt with 471 Specific Trade Concerns. Clearly this is an area where there may be potential disagreements. However, in these 20 years, we have only had five TBT related disputes, and only one is ongoing today.”
Entitled “TBT@20: Reducing Trade Friction from Standards and Regulations”, the event provided a wide range of stakeholders with the opportunity to reflect on how the implementation of the TBT Agreement and the work of the TBT Committee have quietly helped to resolve trade problems of commercial and social significance and to enhance regulatory cooperation over the past 20 years.
The opening panel discussed the implementation of the TBT Agreement and the work of the TBT Committee from three complementary perspectives. Former TBT Committee Chairperson Juan-Antonio Dorantes Sanchez (Mexico) looked back at the early days of the TBT Committee and its success in developing good practice for implementation of the TBT Agreement. Yuhua Liu, Deputy Director-General at the Ministry of Commerce of China, outlined the challenges and benefits of China's accession to the WTO in relation to the TBT Agreement. An academic perspective on the TBT Agreement was provided by Professor Joost Pauwelyn, who acknowledged the success of the TBT Committee in keeping track of notifications and in dealing with specific trade concerns, and by Professor Jacques Pelkmans, who looked into the role of the TBT Agreement in limiting or reducing technical barriers to trade.
The second panel looked at the broader relevance of the work of the TBT Committee in relation to businesses, trade associations and consumers. Speakers highlighted the value of the TBT Agreement, how they engage from a personal perspective with their governments on TBT matters, and the challenges they face in this area. The session included contributions by Pär Stenmark (IKEA), Dominique Taeymans (Nestlé), Bev Postma (Food Industry Asia), Jane Ngige (Kenya Flower Council), Dr Scott Steedman (British Standards Institution) and Sadie Homer (Consumers International). Speakers highlighted the importance of addressing the concerns of consumers and small businesses regarding international standards, and the valuable role of standards as a source of knowledge and for promoting regulatory consistency between countries.
The final panel looked ahead to how the TBT Agreement will be implemented in the future. The session benefited from the views of a number of government experts who regularly participate in the TBT Committee. Speakers included George Opiyo (Uganda), Fabrizio Sacchetti (European Union), Jennifer Stradtman (United States) and Xinhua Sun (China). Some of the challenges identified included reviewing how regional trade agreements are addressing TBT issues, how trade barriers can be reduced in the area of testing and certification, and how the participation of developing countries in the work of the TBT Committee can be increased.
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tralac’s Daily News selection: 4 November 2015
The selection: Wednesday, 4 November
Underway, in Geneva: the SACU trade policy review (WTO)
As of end 2014, South Africa (on behalf of SACU) maintained definitive anti-dumping measures on imports from 13 WTO Members. In November 2012, the ITAC initiated a safeguard investigation on imports of frozen potato chips, on which it imposed a provisional safeguard measure in July 2013 and a definitive safeguard measure on 11 December 2013.
During the period under review, Botswana, Namibia and Swaziland fully enforced their national competition regimes; except for Lesotho, all SACU countries have by now their national competition policies in place. However, a regional competition regime is yet to be adopted. None of the SACU countries is party to the WTO plurilateral Agreement on Government Procurement; their government procurement legislations provide for price preferences to local suppliers/products. Except for Namibia where a new Industrial Property Act was passed in 2012, the national regimes on intellectual property rights in SACU countries have not significantly changed.
Although the 2002 SACU Agreement calls for harmonization of agricultural and industrial policies, this has not yet materialized. Therefore, except for customs-related issues, sectoral policies remain country-specific. [Various downloads available]
African Economic Conference: economists aim to strike Kinshasa Consensus (AfDB)
Increasing government spending on healthcare, education and support to vulnerable groups like the elderly has emerged at the top of the agenda for a new deal sought by experts attending the 10th African Economic Conference in Kinshasa, to address rising poverty and inequality in Africa. Amid growing fears that policies to ensure economic growth for all are lacking, economists are seeking a “Kinshasa Consensus” to deal with the possible loss of Africa’s economic gains. The issues proposed for approval in the Kinshasa Consensus include an African Single Currency Federation to cushion the poor from local currency depreciation linked to foreign exchange markets. Local currencies across Africa have weakened by up to 20% against the world’s major currencies since early 2015. Fear is also rising that drought and crop failure will spread food insecurity and poverty. [Other AEC updates]
Carlos Lopes: 'Africa, India, China – an emerging economic Troika' (UNECA)
Cautioning on the one-sided narrative of the India-Africa relationship, he stated that by 2013, 26% of the inward foreign direct investment stocks in India actually came from Africa alone, amounting to $65 billion. “This share of foreign direct investment stocks up was larger than those received by Brazil, China, the Russian Federation or the USA.” He stressed that more must be done to induce further African investments in India with more sustainable and real economy strength than financial markets opportunity.
Nairobi Ministerial: joint statement by African and Indian civil society (SID)
Dr. Biswajit Dhar, Professor, Jawaharlal Nehru University, New Delhi said that “India and the African countries must coordinate and support each other to ensure that all developmental issues including concerns of the LDCs and the Cotton 4 (Benin, Burkina Faso, Chad and Mali) are adequately addressed in Nairobi.” The letter is signed by 119 organisations and individuals in India and 71 organisations from across Africa. The letter makes some key recommendations;
WTO members agree process and structure for Nairobi Ministerial Declaration (WTO)
At a meeting of all WTO members in Geneva on 3 November, Director-General Roberto Azevêdo presented a suggested process to develop a Ministerial Declaration for the WTO’s 10th Ministerial Conference in Nairobi in December. He also presented a possible structure for the document. Both elements were based closely on the views expressed by members to the three facilitators appointed by the Director-General on 12 October to consult with them on these issues (Ambassador Gabriel Duque of Colombia, Ambassador Harald Neple of Norway and Ambassador Stephen Karau of Kenya). Both elements were accepted by the membership. The Director-General said:
Committee on Agriculture in Special Session: report by the Chair (WTO)
Davies meat assurances disputed by US lobby (Business Day)
The talks with the US over the sanitary and phyto-sanitary (SPS) requirements for the importation of US poultry, beef and pork were substantially concluded, Trade and Industry Minister Rob Davies assured MPs on Tuesday. However, as has happened on several occasions in the past, the minister’s version of developments differs starkly from that of US stakeholders. Contrary to Mr Davies’ assurances, the president of the Washington-based National Chicken Council, Mike Brown, said that "unfortunately the SPS issues were not yet resolved". [SA irons out technical issues in AGOA]
ECOWAS laments as West Africa’s intra-regional trade sinks to 12% (ThisDay)
The Commissioner, Industry, and Private Sector Promotion, Kalilou Traore, during a technical meeting convened in Lagos by the ECOWAS Private Sector Directorate to consider the draft on the ECOWAS Business House , said, “We need to take more action to strengthen this regional trade and one way to do that is through trade support bodies. We are here to develop the concept of an ECOWAS Business House that will be a business oriented organisation at the regional level to facilitate trade among member countries. Although there are still lots to be done in the area of feasibility study so that we can have all the details of the project in order to involve all the stakeholders at the financial and member state level so that businesses can be created,” he said.
Nigeria: Non-oil export earnings drop by N52.2bn in Q2 (Vanguard)
The Nigerian Export Promotion Council has said that the country’s earnings from non-oil exports dropped by N52.2billion ($261m) in the second quarter of this year. The Executive Secretary of the Nigeria Export Promotion Council, Mr. Olusegun Awolowo, attributed the slump in non-oil export revenue earning to the suspension of the Export Expansion Grant (EEG) and the insurgence in the North East.
Zambia: Maize open border policy to benefit economy – IAPRI (Daily Mail)
A new report by the Indaba Agricultural Policy Research Institute has revealed that the maize open border policy does not make Zambia food-insecure, but will help expand its market for the benefit of farmers, consumers and the economy at large. It says despite experiencing a fall in maize production last year, Zambia has emerged as the largest surplus country in the region, surpassing South Africa, traditionally the region’s dominant maize exporter. “IAPRI’s research shows that keeping Zambia’s borders open at all times would not risk the country’s food security status, but it will help the country expand its market for the benefit of both farmers and consumers and the economy at large. This is because openness to international trade can reduce price volatility and if properly implemented can help mitigate supply shocks,” the report says.
SADC investment drive gains momentum (SATH)
Over the last two months, the Trade Hub has facilitated over 100 meetings across these five SADC member states, which will culminate in national-level workshops where private sector players, public sector leaders, and association heads will come together to establish priorities and articulate plans for moving forward with the policy guidance. The first of these planned national-level consultative workshops was held in Port Louis, Mauritius on Friday, October 23, 2015. Similar workshops have been scheduled in the other four member states for November 2015. All five countries are committed to presenting Way Forward Strategies for implementing the regional investment policy harmonization guidance at the next session of the SADC Investment Focus Group, which is scheduled for early December 2015 in Johannesburg. The Trade Hub will kick off its planned implementation support for a second group of five SADC member states at these December IFG meetings.
SADC industrialisation: mind-set change critical (Zambia Daily Mail)
A policy and strategy expert at the Southern African Development Community secretariat in Gaborone, Botswana, says the region should abandon the ‘business as usual’ syndrome to achieve its industrialisation goal.
Botswana: workshop on the implementation of trade and transit facilitation (UNCTAD)
The three-day workshop (10-12 November) will gather public and private sector trade facilitation stakeholders to identify what will be required to implement the country’s category B and C commitments and initiate the process of building project plans to request donors’ financial and technical assistance. A special session to discuss transit issues is also foreseen.
Botswana's National Enquiry Point (SATH)
The establishment of a National Enquiry Point is an important element of the WTO’s Technical Barriers to Trade Agreement. The NEP in Botswana was recently launched in Gaborone with Trade Hub support on September 28, 2015. An NEP helps countries respond to information requests on technical regulations from other nations and traders, as well as to provide relevant documentation regarding technical regulations, standards, and conformity assessment procedures.
Botswana’s Choppies seals deal to acquire Ukwala (Daily Nation)
The end-year results confirmed Choppies expansion across Africa after its successful establishment of 73 branches in Botswana, 36 in South Africa and 20 in Zimbabwe. It said that operations in Zambia and Tanzania were going on well adding that it planned to open 35 more stores in various countries by the end of 2016, excluding acquisitions.
Southern Africa: water transfer from the Lesotho Highlands to Botswana (World Bank)
The Project Development Objective is to determine the viability of water resource development options for Botswana to access water from the Lesotho Highlands by assessing engineering, costing, social, legal, environmental, economic and financial information. A Joint Study Management Committee has been established among the three riparian states of Botswana, Lesotho and South Africa to oversee the study in accordance with the MoU between the three countries. The draft report presenting an assessment of the engineering, social, legal, environmental, economic and financial information relating to the possible options was presented at a meeting of the JSMC and Senior Officials in Gaborone on October 13, 2015.
Zimbabwe: Overvalued US$ hits Zim exports (NewsDay)
The US dollar in Zimbabwe is overvalued by 45% thereby affecting export competitiveness, the Reserve Bank of Zimbabwe has said. In a working paper, Assessing the Impact of the Real Effective Exchange Rate on Competitiveness in Zimbabwe, RBZ said the country’s real effective exchange rate has been overvalued since the adoption of multi-currency regime in 2009. It said the magnitude of the overvaluation, however, increased significantly starting in 2011. It said the absence of an exchange rate policy to deal with the overvalued real effective exchange rate implies that the country has to undertake fiscal and internal devaluation to eliminate the disparity between the current account norm and the underlying current account deficit.
Namibia: Schlettwein redirects billions to urgent priorities (New Era)
Finance Minister Schlettwein further identified four key macro-critical issues which require immediate policy attention now and over the next MTEF. These are structural challenges of eradicating poverty, unemployment and inequality through targeted developmental intervention measures; the declining public revenue due to contractions in receipts from SACU and downward adjustments in domestic revenue outlook; the widening twin deficits regarding the government budget deficit and the current account deficit as well as the associated weakening of the external trade position driven by the strong historical expansionary budget and high imports growth over exports; and the declining stock of international reserves, which is a consequence of a negative trade balances. [Schlettwein's balancing act (The Namibian)]
Tanzania's Port stakeholders: 'Maritime railways transport ministry urgently needed' (IPPMedia)
Leading Dar es Salaam port stakeholders have advised president-elect Dr John Pombe Magufuli, to create a separate ministry for maritime and railway transport saying doing so was the only optimal solution to address chronic problems facing the industry. Tanzania Shipping Agents Association board director Emmanuel Mallya, the chairman of Tanzania Freight Forwarders Association board of trustees, Otieno Igogo, and Container Depot Association of Tanzania chairman Ashraf Khan to prioritise the plight of the port in his agenda to revitalize the national economy.
Mozambique: The resettlement debate – time for government to decide (SPEED)
Recent events in Cabo Delgado highlight the importance of the government taking urgent measures to clarify the legislation around resettlement and of defining its own position. It is essential that government now takes a proactive role in establishing a clear framework for compensation and resettlement for land-based investments and in ensuring that its’ staff is able to fulfil its role to ensure the best possible outcomes not only for communities and investors but for the country as a whole. To do otherwise will result in ongoing conflict which will hamper development, and damage the country’s reputation as an investment destination. [The author: Carrie Davies]
Towards a framework for the governance of infrastructure: summary (OECD)
Up to now, much of the debate on infrastructure has focused directly on the financing challenges – how to raise funding for infrastructure projects, by using national levers and accessing international markets – whereas the broader public governance dimension has been neglected. However, OECD analysis has shown that substantial benefits can be realised by better managing public investment throughout its “life cycle” and across levels of government; and that the quality of public governance correlates with public investment and growth outcomes, at both national and sub-national levels.
Deborah Bräutigam: 'Don’t get excited, China is not the new aid superpower'
George Wachira: 'Decade of Chinese economic presence in Kenya offers lessons in bilateral ties'
Mozambique to draw up projects eligible for Indian loans
4th India-Africa hydrocarbon conference: update
Mozambique Food Security Outlook
MoZiSa and BOSA transmission lines on the cards - SAPP
Duncan Green/Naila Kabeer: 'Why it’s time to put gender into the inequality discussion'
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Trade Policy Review: Southern African Customs Union (SACU)
Senior Trade Officials from the Governments of the five Member States of the Southern African Customs Union (SACU) and the Executive Secretary of SACU, Ms Paulina Elago, gathered in Geneva, Switzerland on 4 and 6 November 2015 to undergo reviews of their respective trade policies by the World Trade Organisation (WTO).
It is the 4th time that SACU Member States’ trade policies are being reviewed by the world body that governs multilateral trade across the globe. All SACU Countries are members of the WTO and as a result have certain legal commitments to fulfil from time to time. One such commitment being periodic reviews of their trade policies by the Trade Policy Review Mechanism overseen by the WTO Committee on Regional Trade Agreements.
The Trade Policy Review Mechanism is the most important transparency exercise of the WTO. Its purpose is to examine and evaluate Member Countries’ trade and related policies at regular intervals and contribute to improved adherence by all Members to rules, disciplines and commitments made under the different WTO provisions and agreements. Significant developments which may have an impact on the global trading system are also monitored. It aims at promoting a smoother functioning of the multilateral trading system, by achieving greater transparency in, and understanding of, the trade policies and practices of WTO members.
While not intended to serve as a basis for the enforcement of specific obligations, it is meant to provide for an overall assessment of the trade policy of the different WTO Members.
For each review, two documents are prepared: a policy statement by the government of the Member Country under review, and a detailed report written independently by the WTO Secretariat. The Secretariat report covers the development of all aspects of SACU Member States trade policies, including domestic laws and regulations, the institutional framework, trade policies by measure and by sector.
These documents are then discussed by the WTO’s full membership in the Trade Policy Review Body (TPRB). Written and verbal questions from WTO Members are submitted to which the SACU Member States will have to respond. These documents and the proceedings of the TPRB’s meetings are published shortly afterwards. Since 1995, when the WTO came into force, services and trade-related aspects of intellectual property rights have also been covered.
Under the WTO’s Trade Policy Review Mechanism, the four largest Members in terms of trade volume are reviewed every two years; currently, these Members are the EU, the US, Japan and China. The next 16 Members are reviewed every four years, and the rest every six years; a longer period may be fixed for Least Developed Country Members. SACU Member States are reviewed every six years by the WTO Trade Policy Review Body – the previous review was held in November 2009.
The following statements are available:
» Opening statement by South Africa, Spokesperson on behalf of SACU
» Statement by the U.S. Representative
» EU statement Ambassador Marc Vanheukelens
Report by the Secretariat: Summary
Since the last Review in 2009, economic performance has fluctuated in the five countries of the Southern African Customs Union (SACU), i.e. Botswana, Lesotho, Namibia, South Africa and Swaziland, with a downward trend in their consolidated (total) GDP growth rates. The highest growth of their consolidated GDP (3.4%) was recorded in 2011 and the lowest (-1.7%) in 2009; it has been around 2.5% per year since 2012. This performance has largely resulted from the global economic crisis and its impact on the mining and manufacturing sectors. Economic growth has been uneven within SACU but the overall (consolidated) performance largely reflects South Africa’s as the latter accounts for about 91% of the region’s total GDP.
In 2009, SACU countries individually recorded their lowest economic growth, negative in Botswana (-7.8%) and South Africa (-1.5%), but positive albeit weak in Namibia (0.6%) and Swaziland (1.3%). With annual GDP growth rates of respectively 3.4-7.8%, 0.6%-6% over the period, Lesotho and Namibia were the only SACU countries to weather the crisis rather well, without recording negative growth; the growth rates of Botswana and Namibia rebounded sharply after their poor performance in 2009 and have remained high since then. Swaziland’s economic performance has been positive albeit moderate (1.3%-3% per year) over the period.
As a result, the socio-economic features of the SACU countries have not changed significantly since 2009. Their economies remain dominated by their relatively large services sector (about 60% of their consolidated GDP). However, inequalities between and within the countries are still an issue and continue to be the focus of policy efforts. Botswana and South Africa remain upper middle-income countries – they have been joined by Namibia; Swaziland, a lower middle-income country; and Lesotho, a least developed country. South Africa’s highly diversified economy contrasts with the narrow-based ones of its regional counterparts: diamonds and other minerals in Botswana and Namibia; textiles and clothing in Lesotho; and sugar in Swaziland. Intra-country inequalities within SACU are among the highest in the world, with unemployment and poverty common challenges; relatively high inflation during the review period, due to currency depreciation, high food and fuel prices, as well as an increase in the VAT rate in Botswana, has not helped.
The SACU agreement does not provide for harmonization of macroeconomic policies. However, by virtue of the membership of Lesotho, Namibia, and Swaziland of the Common Monetary Area (CMA), their currencies are pegged to the South African Rand, and their monetary policies are largely aligned on the policy pursued by the South African Reserve Bank (SARB).
SACU countries source some 13% of their imports in the region, and supply the region in the same range. As the largest economy, South Africa is the main investor in the other SACU countries and also dominates regional trade, with over 95% of commercial flows within the customs union involving it as a destination or source. Extra-SACU imports originate mainly from the EU, China, and the United States, which are also among SACU’s main export markets. EU countries, United States and China are also the leading investors in the region.
All SACU countries are members of SADC and signatories to its Trade Protocol. They have RTAs with the members of the European Free Trade Association (EFTA) and a reciprocal trade agreement, signed but not in force, with the MERCOSUR countries. In 2008, SACU members signed a Trade, Investment, and Development Cooperation Agreement (TIDCA) with the United States, which entered into force immediately. Negotiations with the EU on a SADC-EU Economic Partnership Agreement (EPA) were completed in July 2014.
Some SACU countries also maintain bilateral trade agreements, and their consensus to negotiate new trade agreements as a group has not refrained some of them from individually launching bilateral trade negotiations with third countries. Swaziland is the only SACU country that is also a member of COMESA, where it enjoys unilateral preferential market access. SACU members continue to benefit from non-reciprocal preferential treatment under the Generalized System of Preferences (GSP); and, with the exception of Swaziland (since January 2015), under the U.S. African Growth and Opportunity Act (AGOA).
The applied MFN customs tariff, excise duties, duty and tax concessions (rebates, refunds and drawbacks), customs valuation, rules of origin, and contingency trade remedies remain harmonized within SACU. For the time being, in the absence of a regional body, the International Trade Administration Commission (ITAC) of South Africa is responsible for managing the SACU common external tariff (CET); it is also mandated to recommend all rebates, refunds, and drawbacks in SACU. Efforts are ongoing within SACU to facilitate trade by further streamlining customs procedures and documentation.
The simple average applied MFN tariff (SACU CET) rate is 8.3% in 2015, slightly up from 8.1% in 2009. The tariff remains complex, still comprising ad valorem, specific, mixed, formula (variable) duties, and their combination; non-ad valorem duties represent about 3.8% (up from 3.2% in 2009) of total tariff lines. Tariff rates display relatively high dispersion from zero to 624% (an ad valorem equivalent). The modal rate (the most frequently applied) is zero and applies to about 57.5% of all tariff lines on, inter alia, live animals, products of animal origin, ores, fertilizers, cork, pulp of wood, silk, some minerals (e.g. nickel, lead, and zinc), and other base metals. The highest ad valorem rate (96%) applies to 14 tariff lines, including mainly dairy products; and the highest ad valorem equivalent (624%) applies to worn clothing and worn textile articles.
Agriculture (WTO definition) remains the most tariff-protected sector (9.9% on average, slightly down from 10.1% in 2009), while tariff protection for non-agricultural goods is 8% (slightly up from 7.8% in 2009). Under ISIC (revision 2), manufacturing is the most tariff-protected sector (8.7%, slightly up from 8.5% in 2009), followed by agriculture (3.5%, slightly down from 3.7% in 2009), and mining and quarrying (0.1%, down from 0.8% in 2009). The presence of tariff escalation indicates higher effective protection for processed products.
Namibia, South Africa and Swaziland have identical binding commitments (96.6% of all tariff lines), while those of Lesotho (on 100% of its tariff lines) and of Botswana (on 96.6%) are different. All tariff bindings by SACU members are ad valorem. Therefore, the imposition of non-ad valorem duties under the SACU CET does not ensure compliance with the binding commitments. Contrary to the other SACU members, South Africa’s market access commitments include tariff quotas on 53 product groups which actually enter the country at the in-quota tariff rates.
Contrary to excise duties, the VAT is not harmonized within SACU, and the taxation bases and the rates are different: the rate is 14% in Lesotho, South Africa and Swaziland; 12% in Botswana; and 15% in Namibia. Namibia is the only SACU country to impose export taxes/levies on selected products (e.g. unprocessed diamonds, raw hides and skins, and goat skins).
In addition to duty and tax concessions (rebates, refunds and drawbacks) provided for by the SACU Agreement, country-specific rebates on wheat and dairy products are used by Botswana, Lesotho, Namibia and Swaziland (BLNS). During the review period, the Automotive Production Development Program replaced the Motor Industry Development Programme, and the Textile and Clothing Industry Development Programme was discontinued. National legislations also provide for investment incentives aiming at economic and export diversification in BLNS, and at promoting exports and addressing social concerns in South Africa.
As of end 2014, South Africa (on behalf of SACU) maintained definitive anti-dumping measures on imports from 13 WTO Members. In November 2012, the ITAC initiated a safeguard investigation on imports of frozen potato chips, on which it imposed a provisional safeguard measure in July 2013 and a definitive safeguard measure on 11 December 2013.
During the period under review, Botswana, Namibia and Swaziland fully enforced their national competition regimes; except for Lesotho, all SACU countries have by now their national competition policies in place. However, a regional competition regime is yet to be adopted. None of the SACU countries is party to the WTO plurilateral Agreement on Government Procurement; their government procurement legislations provide for price preferences to local suppliers/products. Except for Namibia where a new Industrial Property Act was passed in 2012, the national regimes on intellectual property rights in SACU countries have not significantly changed.
Although the 2002 SACU Agreement calls for harmonization of agricultural and industrial policies, this has not yet materialized. Therefore, except for customs-related issues, sectoral policies remain country-specific.
In Botswana, sectoral policies aim at sustainable economic growth, to be led by diversified production by the private sector which is expected to play an enhanced role in a more competitive environment. The diversification efforts have not been successful as Botswana continues to rely heavily on the mining sector, specifically on diamonds exports (82.3% of total merchandise exports (including re-exports) in 2013). Moreover, the intervention of the State in Botswana’s economy continues to be significant. For instance, Botswana’s two major export products (diamonds and beef) are traded by state-owned companies. Indeed, Debswana, the diamond mining company (50% state ownership), holds a de facto monopoly over exports of rough diamonds, and the Botswana Meat Commission (BMC), which is fully state-owned, has a statutory monopoly on beef exports.
Agriculture remains one of the most important economic activities. Even though the sector’s contribution to GDP has decreased from over 40% in 1966 to 2.4% in 2014, it remains the mainstay of the rural economy, where it is the major source of livelihood, and thus plays a major role in poverty reduction. In addition, livestock’s contribution to exports is substantial; meat and meat products accounted for 70.3% of the country’s agricultural exports. Agriculture continues to be highly protected (by tariff and non-tariff measures) on food security grounds (according to the authorities), one of the country’s main socio-economic goals.
Lesotho’s economy relies mainly on apparel industry (59% of total exports), and on agriculture, the backbone of the rural economy and the main employer. Mining, electricity and tourism have been identified by the government as activities facing significant challenges but with great potential for growth. Accordingly, during the period under review, Lesotho enacted many new laws to modernize its institutional and legal framework on, inter alia, telecommunications, electricity and financial services; their implementation is mostly ongoing. In 2010, it reformed its land system by allowing foreigners to hold a land title subject to certain conditions. In the mining sector (dominated by diamonds) the Government reserves the right to acquire at least 20% ownership in any large-scale mine. Currently, all mines are jointly owned by the state and a foreign company, with the state’s participation ranging from 20% to 30%. Although Lesotho has a strong potential for the generation of electricity because of its relatively abundant water, it is obliged to import power from Mozambique and South Africa, its current infrastructure being very limited. The performance of the tourism sector also remains weak due to poor or inexistent infrastructure, poor brand image, and a limited marketing and communication strategy.
Namibia’s economy is highly dependent on exports of mining products, particularly diamonds. Livestock and fish are also important earners of foreign exchange. In the agricultural sector, Namibia aims to stimulate downstream agro-industries, improve competitiveness of agricultural industries, and increase local products’ share of the domestic market and the contribution of agriculture to the national economy. Based on Vision 2030, the industrial policy promotes value addition: it outlines the specific principles and objectives that will guide manufacturing in terms of production structure and standards. Namibia has updated its information and communication technology framework since 2008 in response to growing demand. The penetration rate of telephones has more than doubled since 2008, with the main source of growth being mobile telephony. Namibia has one of the most developed financial systems in Africa, though significant limitations remain. It is among the world’s fastest growing tourist destinations and tourism makes a significant contribution to its GDP and employment.
South Africa has the most technologically advanced and diversified economy in Africa, with a large services sector generally open to foreign investment. Agriculture is characterized by its dualism, i.e. the coexistence of a well-developed export-oriented system and a subsistence production one. The mining policy has not changed since the last Review; the performance of the sector has been negatively affected mainly by repeated workers strikes. Automotive and textiles are the main manufacturing industries and absorb most of Government incentives. Manufacturing is further protected by the escalatory structure of the SACU CET. However, recent frequent power outages are a challenge to the sector and to the whole economy. South Africa maintains a solid and relatively stable financial services subsector. Tourism is a key foreign exchange earner.
In Swaziland, sugar and sugar-based products make up almost 50% of merchandise exports. The country is a net importer of food, fuels and services. Agriculture still provides the livelihood for 80% of the population. The Government seeks to ensure food security, increase productivity, and diversify and enhance commercial agriculture. Land fragmentation, high input costs, poor infrastructure and insufficient access to credit remain major challenges. Swaziland is a net importer of energy and electricity is more expensive than in any other SACU country. Mining has expanded in the past years owing to new iron ore production and improvements in coal production; this has resulted in increased mineral exports. Under the Mines and Minerals Act passed in 2011, a 50% cap applies on foreign investment in mining activities. Manufacturing remains focused on value-added sugar products (confectionery and soft drinks). In the telecommunications subsector, new legislation was passed in 2013 and an independent regulator was established. This should enable market access for new entrants, thereby promoting competition and price reductions.
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WTO members agree process and structure for Nairobi Ministerial Declaration
At a meeting of all WTO members in Geneva on 3 November, Director-General Roberto Azevêdo presented a suggested process to develop a Ministerial Declaration for the WTO’s 10th Ministerial Conference in Nairobi in December. He also presented a possible structure for the document.
Both elements were based closely on the views expressed by members to the three facilitators appointed by the Director-General on 12 October to consult with them on these issues (Ambassador Gabriel Duque of Colombia, Ambassador Harald Neple of Norway and Ambassador Stephen Karau of Kenya). Both elements were accepted by the membership.
The Director-General said:
“The facilitators’ work has been helpful in setting out members’ views on the possible structure of the Ministerial Declaration. I listened very closely to members’ comments and I think that there are some shared views on the broad structure that the Declaration could take. This would be quite similar to the Bali Declaration, falling into three parts.
“First we would have the introductory language, focusing on the importance of the multilateral trading system in the context of the WTO’s 20th anniversary. The second part would cover the Nairobi deliverables which we are working separately to develop. The third part would then look to our future work after Nairobi. I think that we should now begin a process of more focused discussions, following this structure.
“In addition, from all the feedback I have heard, there has been a good response so far to the facilitators themselves. Their report was very useful and seems to have been well-received as a balanced and comprehensive document, and I think that they have the trust of the membership. Therefore it makes sense that they should continue to play a role in assisting me and the General Council Chair in facilitating our work.
“Many members emphasised the need to maintain a transparent and inclusive process. Therefore I think we should move to a more intense process of meetings with the full membership to begin preparing elements under each heading, following this structure. I, the General Council Chair, and the facilitators would work together to run these meetings, but the members would be the drafters, not us. The contributions must come from the membership.”
It was agreed that this work will commence at a meeting of the full membership on Thursday 5 November.
The Director-General also stressed that the task of preparing a Ministerial Declaration must move forward in parallel to work on negotiating substantive deliverables for Nairobi. He urged members to remain engaged on all fronts – and to be ready for an intensification of work across the board.
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Schlettwein redirects billions to urgent priorities
Government has identified a total of N$4 billion of internal savings for the 2015/16 financial during the Mid-Year Budget Review process. These funds will now be relocated to urgent priorities without increasing overall budget expenditure and without increasing the overall 2015/16 financial year budget ceiling.
During yesterday’s Mid-Year Budget Review, the Minister of Finance Calle Schlettwein said internal reallocation totalling about N$775.3 million and N$218.9 million are apportioned to cater for the salary adjustments and bush allowances respectively, in accordance with the agreement reached between the government and labour unions.
Additionally, some of the spending adjustments made for the Ministry of Health and Social Services have been reallocated to scale up allocations for the purchase of anti-retroviral drugs and other pharmaceuticals to supplement current budgetary provisions.
“The Appropriation Amendment Bill (Mid-Year Budget) which I am tabling today proposes a redeployment of funds identified within budget votes for reallocation to various priority programmes within and across the budget votes, without increasing overall expenditure and therefore without increasing the overall budget ceiling. It is, thus, not an additional budget. It is a measure intended to enhance optimum delivery of services, resource allocation efficiency and meet priority commitments of the day,” said Schlettwein.
On the balance, net savings after internal reallocations will enable the government to scale up resource allocation to urgent priorities. These urgent priorities include the Ministry of Agriculture, Water and Forestry, which will receive N$458 million to fast-track completion of the Neckartal Dam, which will unlock irrigation activities.
A further N$210 million is allocated to combat foot-and-mouth disease in the northern parts of the country, while N$531 million is allocated to the Drought Relief Programme under the Office of the Prime Minister. Furthermore, N$121 million is assigned to the Land Serving Programme in identified pilot towns, while N$166 million is allocated to the settlement of mass housing contracts under the Ministry of Urban and Rural Development.
Also, N$500 million is set aside for anti-retroviral drugs and pharmaceuticals, and N$291 million is allotted to TransNamib for the lease of locomotives to improve efficiency of cargo services and rail transport, while N$495 million is assigned for anti-poaching activities.
According to Schlettwein, the total expenditure execution rate for the 2014/15 financial year amounted to 97.6 percent of the N$60.20 billion budget. The operational expenditure execution rate, including interest payments stood at 98.9 percent, while the Development Budget execution rate was 95.4 percent of the net budget allocation.
Schlettwein added that for the current financial year the total expenditure execution rate by the mid-year mark amounted to N$24.69 billion, or some 36.8 percent, compared to a 46.5 percent execution rate in the previous corresponding period. The finance minister warned that this execution, while in part is subject to ongoing data reconciliation, suggests a rather slow budget implementation rate.
“The consolidation programme, which government is undertaking, is not just for its own sake. It aims to strike a balance between reinforcing fiscal sustainability and supporting economic growth and social development objectives. We know too well that if we do not grow the economy, we will not be able to grow revenue. Without revenue growth, there is no room for expenditure expansion to address development needs. Hence the culture of doing more with less, and affordability and stringent prioritization are expected to be the norm rather than an exception during the next Medium Term Expenditure Framework (MTEF),” noted Schlettwein.
He continued that strengthening the macro-fiscal frameworks and rebuilding the fiscal space is important to enhance investment credit ratings strength, creditworthiness and national competitiveness as an attractive destination for investment.
Schlettwein further identified four key macro-critical issues which require immediate policy attention now and over the next MTEF. These are structural challenges of eradicating poverty, unemployment and inequality through targeted developmental intervention measures; the declining public revenue due to contractions in receipts from the Southern African Customs Union (SACU) and downward adjustments in domestic revenue outlook; the widening twin deficits regarding the government budget deficit and the current account deficit as well as the associated weakening of the external trade position driven by the strong historical expansionary budget and high imports growth over exports; and the declining stock of international reserves, which is a consequence of a negative trade balances.
Schlettwein added that the government would achieve fiscal consolidation in the next budget and over the MTEF by implementing spending cuts of 42 percent on the indicative allocations to non-core and least priority recurrent expenditure items.
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SA irons out technical issues in AGOA
South Africa has addressed the technical issues relating to market access of United States agricultural products raised during the African Growth and Opportunity Act (AGOA) review of South Africa, says the Department of Trade and Industry (dti).
“We have facilitated the negotiations and sent all proposals to resolve the outstanding issues in regard to South Africa remaining a beneficiary of AGOA for the next 10 years and now await the response from the United States.
“We remain fully committed to address any final technical matters that the United States may require in making sure that the country continues to benefit from AGOA,” said Trade and Industry Minister Davies on Tuesday.
Updating the Portfolio Committee on Trade and Industry in Parliament, the Minister said South Africa has complied with all undertakings to open its market to United State bone-in chicken pieces.
Earlier this year, South Africa and the US struck a deal that will see South Africa import 65 000 tons of US chicken. The two countries had been at loggerheads over the inclusion of US chicken imports into the South African market.
However, the quota has not been implemented due to South Africa’s concerns about avian flu in the US.
Minister Davies said South Africa has in the meantime complied with all undertakings to open its market to United States bone-in chicken pieces.
“The International Trade Administration Commission has published the Rebate Provision for the anti-dumping duty on bone-in chicken pieces from the US as well as guidelines for the allocations of the quota volume for public comments.
“This is in line with the understanding that was reached between our poultry industries in Paris of allowing 65 000 tons per annum of United States chicken to enter the South African market without the relevant anti-dumping duties,” said Minister Davies.
This quota only remains in place for as long as South Africa is part of AGOA.
Minister Davies told the Portfolio Committee that in a bilateral meeting held between the US and SA on the margins of the Gabon AGOA Forum that took place in August 2015, it was established that the main issues that remained to be resolved to smooth the path for South Africa’s AGOA eligibility were poultry, pork and beef.
AGOA is a preferential agreement that has been in place since 2000 between the US and sub-Saharan African countries. The current AGOA expired at the end of September.
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Joint Statement by African and Indian Civil Society on the Nairobi Ministerial of the WTO
In a joint statement released and endorsed by nearly 200 organisations across Africa and India on the occasion of the Third India-Africa Forum Summit that took place in New Delhi last week, African and Indian civil society reminds their governments of the key issues at stake at the forthcoming WTO Ministerial which will take place in Nairobi in December.
They call upon their leaders to ensure “a balanced and development friendly outcome at the Ministerial. The “success” of the Ministerial will only be a success if it delivers on key development objectives of the South that includes the interests of the people in Africa and India and benefits all people in the developing world. If it can’t, it is of no interest to us”.
Justus Lavi Mwololo, from Kenya Small Scale Farmers Forum (KESSFF), said “it is time the WTO delivers on its promises to developing and least developed countries. African leaders must ensure that the Nairobi Ministerial does not conclude without having met this objective. In particular it must take into account the interests of the poor, the small producer and marginalized groups”.
The letter reminds the leaders that “even the WTO’s Doha Development Round, launched in 2001 and mandated to address core development issues faced by the South, continues to see stiff opposition by the developed countries to any concessions for developing countries and to removal of barriers, which could actually enable them to provide better economic and social opportunities to their people.”
Dr. Yash Tandon, Chairman of Southern and Eastern African Trade, Information and Negotiations Institute (SEATINI), Uganda, Zimbabwe and Kenya, said “there is real fear that the developed countries will try to end the Doha Round in Nairobi without a credible development outcome and launch a new round that casts aside developing country concerns. This must not be allowed to happen”.
African and Indian civil society expresses deep disappointment with the way things have been moving at the WTO and key developing country concerns remain unaddressed and development policy remains blocked. “One of the main objectives of the WTO was to create more opportunities for the developing world, and even more so for least developed countries (LDCs), so they could advance their development progress. However, after twenty years of the WTO, we do not see any materialisation of those promises from global trade rules. In spite of some strengthening of developing country voices, the developed countries and the transnational corporations within them have grown more powerful, strident and aggressive”.
Biraj Patnaik, from the Right to Food Campaign, India said “agriculture across developing countries including in Africa and India face a stiff challenge in the current negotiations from the USA and the EU who refuse to grant a permanent solution to the food security proposal and a development-oriented outcome in agriculture, including on cotton subsidies and market access”.
Supporting the statement made by the Kenyan Foreign Minister, Hon’ble Ms Amina Mohamed on July 1 that the Doha Development Agenda (DDA) negotiations cannot be concluded without “credible” developmental outcomes, the letter points out that the “current WTO situation presents grave contradictions. Instead of creating spaces to foster growth and development, we see more and more aggressive demands are made of developing countries to prize open their economies on very unfair terms, which would threaten livelihoods, food security, locally beneficial industrialization and beneficiation (local value addition)”.
Dr. Biswajit Dhar, Professor, Jawaharlal Nehru University, New Delhi said that “India and the African countries must coordinate and support each other to ensure that all developmental issues including concerns of the LDCs and the Cotton 4 (Benin, Burkina Faso, Chad and Mali) are adequately addressed in Nairobi.”
The letter is signed by 119 organisations and individuals in India and 71 organisations from across Africa. The letter makes some key recommendations;
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“Ensure a strong development outcome at the Nairobi MC10 of WTO with significant gains for developing and least developed countries. The “success” of the Ministerial should not be valued in terms of reaching the low hanging fruits, which favours developed countries but one that actually equips developing countries to address key economic, social and environmental needs”;
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“The Doha Development Round should not be concluded in Nairobi or later without a meaningful development package and no other round should be launched without addressing the core development issues that the DDR was mandated to address…”;
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Specific deliverables of a development package should include but not be limited to; a permanent solution on the food security proposal ..; discussions on domestic subsidies including on cotton subsidies by the advanced countries like the USA and the EU; an agreement on export competition, special and differential treatment (S&DT) for developing countries in all aspects of agricultural and NAMA negotiations including on tariff cuts and safeguard mechanisms; ‘Biodiversity Amendment’ to the TRIPS Agreement to prevent ‘biopiracy’, and a strong LDC package. On the other hand, further advances in and weakening of the flexibilities of the TRIPs Agreement, the Trade Facilitation Agreement (TFA) and further talks on plurilaterals and mega regional FTAs should be blocked; and,
- “Conduct the negotiations in a transparent, inclusive and fair manner that truly reflects the multilateral nature of the WTO…”.
Civil society in Africa and India pointed out that “India and Africa have played a key role in WTO negotiations, most often supporting strong developing country positions. They have a crucial role to play in this Ministerial”. But their leaders must ensure “their people have access to diversified opportunities for livelihoods, jobs and incomes, healthy food to eat and the ability to produce it locally, have access to adequate services, such as drinking water, health and sanitation, natural resources, and live in a safe and sustainable environment. No trade rules should come in the way of attaining these objectives. The WTO in particular must be allowed only to forward and not to hinder these objectives”.
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Well-designed IP systems can benefit Africa, leaders say; WIPO Director urges action
As Africa is emerging to become a centre of economic growth, strong and well-developed national intellectual property systems can help the continent unlock its citizens’ creativity and innovation and further boost economic growth, World Intellectual Property Organization Director General Francis Gurry said on 3 November in Dakar, the Senegalese capital where an African Ministerial Conference on intellectual property kicked off. Gurry was joined by top officials from a number of African nations.
The 2015 African Ministerial Conference on Intellectual Property for Emerging Africa is taking place in Dakar from 3-5 November. WIPO issued a press release from the first day.
The event, which gathers around 50 ministers from Africa, was opened by Mauritius President Gurib-Fakim who strongly supported the idea of well-designed IP systems that can benefit national economies in Africa, a continent which is set to become “the second-fastest growing market.”
The event is an indication of an emerging cooperation between the African Union and WIPO, and an “opportunity to investigate the conjunctions of two great trends: the shift of economy towards capital, and the emergence of Africa as a centre of growth,” Gurry told participants.
He highlighted the fact that “intellectual property is a means of capturing a competitive advantage that is conferred by innovation and also a means of rewarding investment, human and financial resources, in the generation of new knowledge and innovation.”
Senegalese Prime Minister Mohamed Boun Abdallah Dionne, who was speaking on behalf of the country’s President, said his country is more than happy to host the event.
“The patenting of inventions is a crucial means to disseminate new knowledge it protects. By choosing Intellectual Property for an Emerging Africa as a theme for this ministerial conference, organizers are comforting us in our fundamental options: in the new society of knowledge and know how, Africa is more than aware of benefits to get from intellectual property,” Dionne told participants.
A country like Senegal claims that research and IP issues are growing. Its Industry and Mines Minister told reporters at a press conference that around 30 patents were received between 2013 and 2014, which “shows the dynamism of local inventors,” Aly Ngouille Ndiaye said.
The African Union and the United Nations have committed to work to support the process as “Africa is literally absent in international forums on IP,” said AU representative at the conference, Martial De Paul Ipounga.
Africa will be a great economic market in a near future and Japan will participate in that by supporting IP systems, said Takashi Kitahara, Ambassador of Japan to Senegal.
According to organisers, the conference aims to highlight the relevance of IP in promoting innovation and scientific and technological transformation of African economies. It will also show how IP can contribute to the realization of the priorities identified in the Common African Position (CAP) on the Post-2015 Development Agenda. And it will provide an arena for discussion on the role of IP for innovation and creativity in the continent. The meeting ends on 5 November.
Mauritius President: Africa’s Partners Must Support Innovation in the Continent
Ameenah Gurib-Fakim, the President of the Republic of Mauritius, called on Africa’s partners to support innovation in the continent.
“Partners can help build capacity in the continent. The gains are possible when governments work with partners to develop innovation and intellectual property,” she said. The president spoke on the high-level panel at the conference.
The panel had the theme, “Africa in the context of a knowledge-based economy, challenges and perspectives.” It brought together several experts, civil society members, representatives of governments and donors.
Gurib-Fakim praised the continent’s progress to establish positive growth. “The continent is still recognised for its progress,” she said. “Africa is one of the areas that are quickly developing. With the development of internet and the new technologies Africa is growing. Its sons are making progress in the field of innovation.”
But, she said in prepared remarks, “the big question now is: How do we address Intellectual Property so that we become real game changers for the African Continent, especially as the African economy continues to diversify further?”
“It is a known fact that Africa has a weak, not to say underwhelming record on creating and protecting IP,” said the president. “According to WIPO, ‘no African nation was among the top 20 countries for patent applications in 2013.’
This is certainly a bleak picture.”
“[I]n this globally fiercely competitive international economic landscape, the creation and management including protection of knowledge will be central to building and spearheading wealth creation and integration in the global economy, she said.
Gurib-Fakim pointed to a “paradox,” which is that “Africa spends on average some US $ 2.2 billion in IP payments but revenues include a paltry US $ 266 million. On the other hand, IP proceeds for the developed countries amounted to approximately US $ 297 billion in 2013.”
The president said the continent can achieve its ambitions based on a “strong and credible institutions.” According to her, this will address the challenges in fighting against climate change and unemployment.
“The continent needs to generate 10 million jobs. It must invest in industries. The continent must also adapt to climate change. Africa must be a continent free from diseases such as AIDS. Women’s access to healthcare should be granted,” she said.
WIPO Director General Calls For Africa To Take Action
WIPO Director General Francis Gurry said at the opening that Africa must take action to develop innovation in order to increase its growth.
“Africa has urgent priorities. Innovation is the basis for increased productivity. We must capitalize the benefits of innovation,” Gurry said at the high-level panel. More than 100 experts, governments, academics and inventors took part in the high-level panel, according to sources.
For the WIPO director, the African continent has the assets to take action. “The regulatory framework in Africa is not bad. We must take action. There are many models of efforts implemented in the field of innovation and intellectual property in Africa,” he said. “Innovation is a state of mind. We must practice it. We must also strengthen the capacity of African institutions.”
Martial De Paul Ikounga, Commissioner for Human Resources, Science and Technology at the African Union Commission, said the actions that need to be started must address the needs of the continent in terms of innovation.
“Innovation is a response to a need,” he said. “We must identify the bridges over which innovations are desired, because an innovation must be useful. It takes us to lead people to create.”
Ikounga urged the involvement of the university community. “Universities must be involved. They should in collaboration with the states identify the needs and request the response from inventors and youths. This could further support the growth of the continent,” he said.
Financing is essential to take action, according to several participants to the panel. Donors felt that the crucial factor is to see “how to promote access to financing,” according to some participants.
“There is huge capacity to drive growth by addressing the issue of access to finance,” said Oluwatoyin Sanni, CEO of United Capital in Nigeria. “It is difficult to finance, because there is not enough protection. We must be part of the solution. We must therefore create risk management structures to ensure the funding.”
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Export competition a possible deliverable in Nairobi, despite gaps
The Chair of the agriculture negotiations, Ambassador Vitalis of New Zealand, told WTO members on 30 October that export competition in agriculture is broadly believed to be a possible deliverable for the Nairobi Ministerial Conference at the end of the year. “Unfortunately, it is also clear today that there are still some significant outstanding issues within this pillar,” the Chair said at an informal meeting of WTO members.
WTO members heard an update on recent consultations held by Ambassador Vitalis and exchanged views on what they see as a possible agriculture outcome at the WTO Nairobi Ministerial Conference and beyond. Members generally agreed that export competition can be a possible deliverable at the Nairobi conference on 15-18 December 2015. However, differences remain on whether export competition should be linked with other issues in agriculture and on the precise content of the possible outcome.
The G33, a group of developing countries pressing for flexibilities for developing countries to undertake limited market opening in agriculture, introduced a revised proposal on the special safeguard mechanism (SSM) – a mechanism that would allow developing countries to raise import tariffs on agriculture products in cases of import surges or price declines. Countries in support of agricultural trade liberalization voiced their concerns about the proposal, noting that a special safeguard mechanism without tariff reductions would allow countries to raise tariffs above existing bound levels and that this would be a step in the wrong direction.
A few members repeated their position that all three pillars of the agriculture negotiations – market access, domestic support and export competition – are interlinked, and asked members not to “cherry pick” at one pillar. Some members expressed the view that reform in domestic support and market access should continue to be addressed after Nairobi.
Export competition
The Chair shared his assessment of the current state of negotiations in export competition, including export subsidies and subsidies in the form of export finance programmes, non-emergency food aid and the activities of exporting state trading enterprises. He confirmed his intention to pursue in an intensive manner a text-based negotiation using the 4th revision of the agricultural negotiations text of 2008, also known as ‘Rev 4’, as a basis for engagement. He invited members to stay as close as possible to this text.
The Chair underlined the widely recognised view that an outcome on export competition in Nairobi would constitute a very significant and meaningful outcome, but he also noted that there were still some outstanding issues.
On export subsidies, the ‘Rev 4’ text specifies dates when countries shall fully eliminate export subsidies; some of the dates have already been exceeded. The Chair proposed to simply add seven years to the original dates in the text, which was supported by most members.
On export finance, the Chair noted that one member expressed several concerns, including on the maximum repayment period in export financing programmes and the need to include some kind of “safe harbour provision” to avoid legal challenges to such programmes. A few other members said the notion of a “safe harbour provision” would be backtracking and a step in the wrong direction.
Relating to the provisions on international food aid, several developing countries highlighted the importance of disciplines in this area in order to ensure that international food aid would not have unintended commercial displacement effects and risk hurting domestic agricultural production. One member considered that the Rev.4 text on international food aid was on the whole problematic.
The Chair reported that the current text on agricultural exporting state trading enterprises has not, so far, attracted specific concerns.
The Chair also noted the importance attached by many members to the various flexibilities envisaged for developing countries, in particular least-developed countries, net food importing developing countries, and small, vulnerable economies.
Cotton
Four African countries – Benin, Burkina Faso, Mali and Chad, known as the “Cotton Four” – introduced their proposal on cotton. The trade-related aspects of the proposal contain suggestions on reforms in market access, domestic support and export competition in the cotton sector, with the aim of levelling the playing field for cotton exporters in the poorest countries.
The Chair reported on his consultations on the three areas of reform. On market access, he said that the Cotton Four countries have provided a list of products that would be covered by the duty free and quota free scheme, which would allow the poorest countries to export cotton products to developed countries and some developing countries with no trade barrier. On domestic support, the Chair said the feasibility and the overall balance of a possible outcome in this area remain a central issue and “it is clear that this is going to be a very challenging area”. On export competition, a cotton-related outcome should be envisaged within the scope of a wider outcome, the Chair told members.
Public stockholding
The Chair reported on the consultations he had held on public stockholding for food security purposes. “Unfortunately, I did not see any fundamental change in members’ well-known positions,” he told the meeting.
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G-20 economies: Rebalancing for more durable growth
The Group of Twenty (G-20) advanced and emerging market economies has made progress in reducing their large external current account imbalances and some progress on internal imbalances. However, greater policy efforts across the membership are needed for stronger and more sustainable growth, says a newly published IMF analysis.
The G-20, seeking to make the world less prone to crisis, while strengthening growth prospects, has made the reduction of the imbalances of its member economies one of its key objectives. Thus, as part of its Mutual Assessment Process, the G-20 agreed to have assessments every two years of large and persistent imbalances identified against a set of indicative guidelines. The IMF’s Imbalances and Growth report, which was prepared at the G-20’s request, provides general trends and assessments since the 2013 update.
Based on the guidelines agreed by the G-20, the same nine members as in the 2013 exercise – China, the euro area, France, Germany, India, Japan, Spain, the United Kingdom, and the United States – were identified for further assessment of their imbalances. For each of these members, the report, which covers both external and internal imbalances, discusses the outlook for imbalances and the IMF staff assessment and policy implications. Overall, the analysis suggests that further policy action across the G-20 membership, tailored for deficit and surplus economies, is needed to facilitate further internal and external rebalancing to support stronger growth.
External imbalances have decreased
Global current account imbalances (the sum of deficit and surpluses) have narrowed sharply since their pre-crisis peak, and most of the adjustment is expected to be durable. They declined to 3½ percent of world GDP in 2014, down from over 5½ percent during 2006-08.
The improvement in current account imbalances reflects to a large extent subdued domestic demand in economies with large pre-crisis deficits. In some of these economies output gaps remain large, and some of the improvement in the current account balance could reverse as domestic demand strengthens, posing risks for economies with weak net international investment positions.
Weak growth may reflect in some cases a lack of rebalancing in some large surplus countries. In the euro area for instance, the substantial adjustment of debtor countries has not been matched by a rebalancing of large surplus countries, which has weighed on overall euro area demand.
Going forward, recent trends in oil prices and exchange rates will have mixed effects on current accounts, though would not affect much excess imbalances. For instance, the fall in oil prices reduces the surpluses of oil exporters and improves the current account deficits of deficit countries. But it also tends to increase external imbalances in countries with large current account surplus (e.g., Germany, Japan, China).
Reducing fiscal imbalances a challenge
Public debt remains very high in advanced economies, despite appreciable consolidation efforts, and remains broadly unchanged from the 2013 sustainability update. While fiscal adjustments over the past several years and record low interest rates have helped containing indebtedness, the IMF analysis finds that sluggish growth and low inflation have prevented a sizable reduction in public debt levels. Further action is still needed, the report said, to put public debt on a sustainable path.
Need for joint action
The report concludes that joint policy actions by surplus and deficit economies are needed to achieve both more balanced and stronger growth. For example: in China, policies should focus on further rebalancing toward consumption, while preventing too sharp a slowdown in growth. In the euro area, creditor countries, like Germany, should focus on boosting domestic demand, including through public investment, while debtor countries like France and Spain should further enhance competitiveness and reduce barriers to employment. Policies which facilitate the adjustment of real exchange rates would also help rebalancing.
Finally, in many advanced economies, managing high public debt in a low-inflation environment remains a key challenge. While fiscal consolidation is needed to achieve more sustainable debt levels, its pace should be attuned to the strength of economic conditions and not offset the direct positive effect of consolidation on debt ratios.
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Weakness in African markets overdone
China’s trade with Africa is only 5 percent of its global trade total, according to 2011 figures from Global Trade Atlas. But its impact on the continent is profound. Equally so, China’s current woes will weigh heavily on Africa.
Over the past months, the world’s focus has been drawn to the possible implications of a slowing and changing Chinese economy and the impact on developed and developing nations. The implications for the African continent must also be considered. The past decade has seen a growing interaction between African economies and China from a trade perspective, as well as in terms of investments and the construction of infrastructure.
“Developing nations around the world are dealing with a lower growth economic environment; Africa is certainly not immune.”
The impact of lower commodity prices as a result of the Chinese economic slowdown is already being felt as it highlights the twin deficits many countries run. Over the last year we have seen many African currencies weaken in a similar fashion to what are generally deemed to be “commodity” currencies. Secondly, lower tax revenues from mining, oil and other commodities have constrained government budgets.
Higher domestic interest rates in many African countries are a result of imported inflation due to the weaker currencies, as well as increased government borrowing needs. So far, many developing nations around the world are dealing with a lower growth economic environment; the continent is certainly not immune. However, in spite of the constrained environment, Africa still needs significant investments in infrastructure and foreign direct investment (FDI) to continue on its growth path.
On the infrastructure front, we have seen Chinese engineering contractors pursuing contracts around the world as their domestic economy and investment into infrastructure there slows. Almost a third of the value of China’s foreign engineering contracts in 2014 (according to statistics from the China Global Investment Tracker) was on the African continent.
Chinese support
The eastern African region has benefited significantly and has received a third of all Chinese project spend on the continent over the last decade. Having launched the Asian Infrastructure Investment Bank and the Silk Road Infrastructure Fund with $40 billion (R550.9bn), we do not see the Chinese government reducing its support for engineering firms’ project expansion outside the country. Support is, however, not unconditional and funding for the Accra Ring Road in Ghana was recently turned down by the Export-Import Bank of China.
On the FDI front, there is less cause for concern. Although FDI from China into Africa is growing, it only amounted to 4.8 percent of the total FDI into Africa in 2014 (according to Ernst & Young or EY’s Attractiveness Survey Africa 2015). This, according to sources including the China Global Investment Tracker, amounted to 6.1 percent of China’s FDI, which is in line with Africa’s portion of global gross domestic product. FDI into Africa remained constant in 2014, despite a 16 percent decline in global FDI from 2013, according to UN Conference on Trade and Development’s World Investment Report 2015. This year is expected to be a record year for FDI into Africa (projected to hit $55bn) and should exceed development assistance for the first time.
The type of FDI into Africa has also moved away from extractive or primary industries. In 2014, 43 percent of the greenfield investments were in the services sector, with 33 percent in manufacturing and only 24 percent in primary sectors, says the UN report. This shows a move away from primary sectors, where the existing investment makes up 31 percent of the total. So, while we expect slightly lower growth across the continent in the near term, the longer-term outlook remains robust. FDI and other long-term investments into the economies of Africa, as well as continued growth in its infrastructure are continuing apace.
In line with global risk aversion we have seen some portfolio investors reduce their exposure to the continent, while others appear to be waiting for further currency weakness before investing. However, the weakness this has caused in equity markets appears to be overdone in the longer term.
Paul Clark is an Africa specialist at Ashburton Investments. The views expressed here do not necessarily reflect those of Independent Media.
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ECOWAS laments as West Africa’s intra-regional trade sinks to 12%
The Economic Community of West African States (ECOWAS) has lamented over the low level of intra-regional trade within the sub-region, noting that several years after regionalism, intra-regional trade in ECOWAS is still consistently low at about 12 per cent.
The Commissioner, Industry, and Private Sector Promotion, ECOWAS, Kalilou Traore, explained that ECOWAS adopted the protocol of free movement of people and goods since 2000 based on the regional trade and commerce, but stressed that the level of regional trade still remains low at 12 per cent of total trade.
He explained that there was need to take more action to strengthen regional trade in the region, stressing that the only way to achieve this feat is the establishment of trade support bodies.
Traore, during a technical meeting convened in Lagos by the ECOWAS Private Sector Directorate to consider the draft on the ECOWAS Business House (EBH), said, “We need to take more action to strengthen this regional trade and one way to do that is through trade support bodies. We are here to develop the concept of an ECOWAS Business House (EBH) that will be a business oriented organisation at the regional level to facilitate trade among member countries.
“Although there are still lots to be done in the area of feasibility study so that we can have all the details of the project in order to involve all the stakeholders at the financial and member state level so that businesses can be created,” he said.
He stated the importance of Micro Small and Medium Enterprises (MSMEs) development and the status of the implementation of some regional programmes including the ECOWAS quality programmes, regional payments system, private sector and MSME development strategies and efforts at establishing the common market for free movement of persons and goods.
He said the overall goal of EBH system is to foster intra-regional trade, promote ECOWAS exports and deepen market penetration for MSME in the region.
He noted that it would also facilitate bulk creation, high quality regime and standardisation in the region, reduce cost of business for SME companies and promote the establishment of relevant trade infrastructure including quality infrastructure in the region.
“Our expectation is that within the first five years of establishment of the regional EBH, apart from boosting the Gross Domestic Product (GDP) in the regional economies, made in ECOWAS States product will be viable and visibly present for business in the regional market and companies to reap the gains from international trade.
Also speaking at the event, the Head Business and Enterprise Promotion, ECOWAS, Dr. Enobong Umoessien, stressed that the region has enjoyed a lot of support from countries, Non Governmental Organisations (NGOs) and groups, but called on the region to look inward by establishing a platform to drive the region’s project and harness the resources available in the region to drive development and also contribute to developing the region.
“We have to start looking at ways to leverage our capacities and resources to do the things we need to do. The project targets many of the industries and business communities in the region. As you about 90 per cent of our businesses are Small and Medium Enterprises (SMEs) and these businesses wants to export, distribute and connect with the international market. But the key challenges facing these businesses is that their products are small, so it is a challenge for them to move from one country to another in an efficient manner,” he said.
In his words, “This business house will enable them to aggregate their products and move as a group where they break bulk and distribute. There are so many SMEs with good products and services to offer but unfortunately, they do not have the adequate quantities. This is a very good initiative that will help SMEs go international working as a group.”
The Deputy Director, Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Dr. Sani Yandaki, allayed fears of Nigeria and other countries in ECOWAS being a dumping ground, saying that the project will open markets for products made in the sub-region.
“The essence of the whole initiative is aimed at building capacities of micro businesses in the region by providing access to markets for the products and services. We want to connect these products to people who actually needs them in other parts of the sub-region. The EBH will act as a third party between the producers and the consumers,” he said.
“The essence is to facilitate trade that will bring about growth in our economy, job opportuinites and increase the GDP of the sub-region. All the goods that are going to be displayed at the business houses are going to be goods produced locally with locally sourced raw materials,” he added.
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Global response to climate change keeps door open to 2°C temperature limit
New UN report synthesizes national climate plans from 146 countries in advance of Paris
An unprecedented world-wide effort is underway to combat climate change, building confidence that nations can cost effectively meet their stated objective of keeping a global temperature rise to under 2 degree C.
A new report, assessing the collective impact of over 140 national climate action plans, indicates that together they can dramatically slow global emissions into the atmosphere.
Another key finding is that the aggregate impact of the “Intended Nationally Determined Contributions (INDCs)” will lead to a fall in per capita emissions over the coming 15 years.
“These INDCs or national climate action plans-represent a clear and determined down-payment on a new era of climate ambition from the global community of nations. Governments from all corners of the Earth have signalled through their INDCs that they are determined to play their part according to their national circumstances and capabilities,” said Christiana Figueres, Executive Secretary of the UN Framework Convention on Climate Change (UNFCCC).
“Fully implemented these plans together begin to make a significant dent in the growth of greenhouse gas emissions: as a floor they provide a foundation upon which ever higher ambition can be built. I am confident that these INDCs are not the final word in what countries are ready to do and achieve over time the journey to a climate safe-future is underway and the Paris agreement to be inked in Paris can confirm, and catalyze that transition,” she added.
Today’s report released by the UNFCCC secretariat captures the overall impact of national climate plans covering 146 countries as of 1 October 2015. This comprises 119 separate INDCs from 147 Parties to the UNFCCC, including the EU, a single Party representing 28 countries.
Since then, more INDCs have been submitted and submissions are likely to continue.
The 146 plans include all developed nations and three quarters of developing countries under the UNFCCC, covering 86% of global greenhouse gas emissions - almost four times the level of the first commitment period of the Kyoto Protocol, the world’s first international emission reduction treaty that required emissions cuts from industrialized countries.
One of the key findings is that the INDCs will bring global average emissions per capita down by as much as 8% in 2025 and 9% in by 2030.
“The INDCs have the capability of limiting the forecast temperature rise to around 2.7 degrees Celsius by 2100, by no means enough but a lot lower than the estimated four, five, or more degrees of warming projected by many prior to the INDCs,” said Ms. Figueres.
The secretariat report does not directly assess implications for temperature change by the end of the century under the INDCs because information on emissions beyond 2030 is required.
However other independent analyses have, based on a range of assumptions, methodologies and data sources, attempted to estimate the impact of the INDCs on temperature leading to a range of average estimates below, at or above 3 degrees C.
Importantly all deliver more or less similar emission levels in 2025 and 2030 and all confirm that the INDCs, if fully implemented, are an important advance on previous scenarios.
“These plans set a determined course, clearly recognizing that successful climate action achieves not only low emissions but a host of other economic and social benefits for governments, citizens and business,” said Ms. Figueres.
“Backed by financial support for developing countries, a clear long term destination of climate neutrality in the second half of the century and a ratcheting up of ambition in a structured, transparent and timely way, the INDCs provide an inspiring part of what will become the Paris package,” she said.
INDCs Can Make a Significant Impact on the Emissions Curve
Key Findings in More Detail
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The majority of INDCs are national in scope and some include immediate action, underlining government recognition of the urgency to raise ambition before as well as after 2020, when the new climate change agreement takes effect.
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The report shows that the INDCs represent a substantial slowdown in emissions growth achieved in a cost effective way, making it still possible and affordable by 2030 to stay below a 2 degree temperature rise.
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As well as the impact on per capita emissions, the report shows that INDCs are expected to slow emissions growth by approximately a third for 2010-2030 compared to the period 1990-2010, delivering emission reductions of around 4Gt by 2030 compared to pre-INDC scenarios.
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All industrialized country INDCs and many developing country INDCs are unconditional. Conditional contributions represent about 25% of the total range of emission reductions.
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All INDCs cover Carbon Dioxide (CO2) and many also cover methane, nitrous oxide and other potent greenhouse gases.
INDCs Signal Major Economic Transformation
The INDCs present climate policies, programmes and actions across many sectors, such as decarbonising energy supply, and mainly through massive shifts to renewable energy, energy efficiency improvements, improved land management, urban planning and transport.
- They reflect growing government confidence in the global response by tens of thousands of companies and investors and thousands of mayors and regional governments who see their own sustainable futures built upon this transformation.
An accompanying report to be published in November from the UNFCCC secretariat – “Climate Action Now”: a Summary for Policymakers – will underline the enormous emission reduction potential and multiple economic benefits possible from best practise climate policies across major sectors from energy to transport, from buildings to forests.
- Over half of all INDCs also include a long-term perspective on the transition toward economic growth based on low-emission, high resilience development. Many foresee near climate neutrality by 2050, meaning a point where remaining human emissions are absorbed by natural systems, are stored or used.
Implementation of the INDCs will also underwrite the achievements of the new Sustainable Development Goals (SDGs). Indeed, fulfilling these INDCs will be a defining factor in the success of the SDGs which would not survive a future of extreme climate impacts.
- Reflecting the need to factor existing climate change into national planning, 100 of the INDCs include measures to reduce vulnerability and build resilience.
Countries with an adaptation component in their INDCS are pursuing efforts through a number of instruments, including climate change laws and regulations and national or sector plans and strategies. Sectors of highest concern are water resources, agriculture, health, ecosystems, and forestry.
The INDCs and Paris: Kick-Starting Long-Term Global Action
The new climate change agreement to be agreed in Paris can anchor the INDCs in terms of recognition, accountability and adequate support that will encourage the extra, required ambition to emerge.
And because greater action will be required over time, it is important to note that the INDCs do not indicate any locking in of the level of global emissions in 2030. Many nations will overachieve on goals set based on what is seen as achievable today.
National contributions can be adjusted upwards over time, especially as mobilization of climate finance and other forms of multilateral cooperation which are catalysed by the new Paris agreement will allow governments to go further and faster, even before 2030.
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Transforming Africa through infrastructure development
The African Union and Partners to meet in Cote D’Ivoire in November to “Accelerate Infrastructure Implementation for Africa’s Integration”
The development of efficient infrastructure is a basic requirement for sustainable economic growth and poverty alleviation in Africa. In order to unlock the continent’s huge growth potential and to put Africa on the path to accelerated economic and social development, the Programme for Infrastructure Development in Africa (PIDA) was adopted by the AU Heads of State and Government in 2012.
PIDA’s overall strategic objective is to enable Africa to build a common market for goods and services. This continental initiative, based on regional projects and programmes, is designed to address the infrastructure deficit that severely hampers Africa’s competitiveness in the world market.
By providing a common framework for African stakeholders to build the necessary infrastructure, PIDA can boost trade, spark growth and create jobs. The strategic initiative mobilizes resources to transform Africa through modern infrastructure and seeks to achieve the facilitation of infrastructure projects worth $360 billion through 2040.
The Priority Action Plan, which is expected to be fully implemented by 2020, consists of 51 cross-border programmes in the four sectors of energy, transport, trans-boundary water and ICT that were selected based on rigorous economic analysis and selection criteria. These programmes are supposed to catalyze further infrastructure investments, open up important trade routes for landlocked countries, dramatically increase access to improved infrastructure and support other economic activities. The involvement of the private sector and the development of tools to meet the demand for project-related information, are crucial points within the implementation.
With the support of all stakeholders, namely the African Union Commission, the NEPAD Planning and Coordinating Agency (NPCA), the African Development Bank, the Regional Economic Communities (RECs) and various specialized regional agencies, PIDA since its adoption, has made important steps towards achieving its objectives, and has provided substantial support to project owners in the implementation processes.
In order to join forces between all relevant players for a successful and speedy implementation, the African Union Commission and the NEPAD Agency in collaboration with the African Development Bank are organizing the first ever PIDA Week in Abidjan, Côte d’Ivoire from 13 to 17 November 2015. Major objectives are the enhancement of private sector investment in the realization of PIDA projects and to increase the visibility of PIDA, its projects and its impacts on the African economies and population.
The PIDA Week will certainly create synergies between the different implementation initiatives and Project Preparation Facilities while enhancing PIDA as a brand. It will further give better leverage to gather high-level personalities from public sector and business. This important event will gather different PIDA stakeholders, namely continental and regional bodies, donors and partners, potential investors and project developers, as well as media to harmonize efforts for a successful and speedy PIDA Priority Action Plan implementation until 2020.
The meeting is expected to gather the Chairperson of the African Union Commission Dr Nkosazana Dlamini Zuma, the President of the African Development Bank Dr. Akinwumi Adesina, the Chief Executive Officer of the NPCA Dr Ibrahim Mayaki, chief executive officers of the African Regional Economic Communities, representatives of development partners as well as business partners, journalists and civil society.
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tralac’s Daily News selection: 3 November 2015
The selection: Tuesday, 3 November
Today: an AGOA briefing by South Africa's Minister of Trade and Industry, Dr Rob Davies
The African Economic Conference 2015: the conference papers, speeches and interviews
Call for papers: 2016 LSE Africa Summit on the theme 'Africa within a global context'
The inaugural PIDA Week: 'Transforming Africa through infrastructure development' (AU)
In order to join forces between all relevant players for a successful and speedy implementation, the African Union Commission and the NEPAD Agency in collaboration with the African Development Bank are organizing the first ever PIDA Week in Abidjan, Côte d’Ivoire from 13 to 17 November 2015. Major objectives are the enhancement of private sector investment in the realization of PIDA projects and to increase the visibility of PIDA, its projects and its impacts on the African economies and population. The PIDA Week will certainly create synergies between the different implementation initiatives and Project Preparation Facilities while enhancing PIDA as a brand.
Launching, next week: the Development Minerals Programme (AU)
The African, Caribbean, Pacific (ACP) Group of States, the European Union, and the United Nations Development Programme have initiated the Development Minerals Programme, a three-year, €13.1m capacity building programme to support the low value minerals and materials (LVMM) sector in 40 countries in Africa, the Caribbean and the Pacific. More than 25 of the participating countries will be in Africa. The programme aims to support the capacity development of key stakeholders in the sector such as regulatory agencies and local governments; private stakeholders including small-scale mining enterprises, construction companies, mining and quarrying associations; as well as training centres, universities, civil society organizations and community groups.
Primary commodity booms and busts: emerging lessons from sub-Saharan Africa (UNDP)
Over the long run, the report shows, Africa’s economies should diversify so as to minimize risk. Primary commodities account for more than 60% of merchandise exports in 28 of the 38 African countries with recent data. Every African economy with data, except South Africa, has a higher export concentration index than the average for developing countries, excluding China.
Oil in Uganda: hard bargaining and complex politics in East Africa (Oxford Institute for Energy Studies)
This paper provides an overview of the history of oil exploration in Uganda, it considers future production and reserve levels and infrastructure development along with Uganda’s regulatory environment, through the refinery demands, tax disputes, and contractual negotiations between the Ugandan government and international oil companies and how politics may impact the advancement of Uganda’s oil industry. [The author: Luke Patey]
EITI agenda advances despite divergent views (World Bank Blogs)
As my first EITI Board meeting, I was surprised to find such divergent views on operational issues when we clearly all agree on the end goal: increasing transparency in the extractive industries to decrease the space for corruption and enhance the development impact of revenues from the sector. In 2013, EITI raised the bar of transparency with the introduction of a new Standard that requires more detailed reporting on extractive company and state owned enterprise payments, government receipts and a broader range of contextual information on the sector in EITI implementing countries. The first batch of reports produced under the Standard arrived between late 2014 and early 2015. Many EITI countries have so far struggled to meet the enhanced requirements of the Standard and concerns have been raised about how they will be assessed when they undergo the validation process (the quality assurance process that leads to the judgement of compliance with the EITI Standard). [The author: Charles Feinstein]
The Head of the Special Unit on Commodities, Samuel Gayi, made UNCTAD's opening and closing statements. He said many of the issues discussed at the IGF were "taboo” a decade ago, dividing opinions between developed countries and transnational mining corporations on one side with host countries, usually developing countries, and non-governmental organisations on the other. Such issues included the need to leave communities near mines with a better quality of life at the end of a project than at the start; the development of ancillary industries and activities surrounding mining; the need for an effective and honest dialogue between companies and communities; and the need to work with communities to ensure that their social fabric and livelihoods are not negatively unnecessarily affected.
Food safety and trade should improve nutrition and boost development (UN News Centre)
The FAO and the WTO have agreed to strengthen their cooperation to promote international food trade and safety in ways that improve nutrition and allow small-scale producers to have better access to international agricultural markets. “We look forward to ensuring fair trade of agricultural and food products through this stronger cooperation,” FAO Director-General José Graziano da Silva said in remarks at an event at the agency’s headquarters in Rome. “On the one hand trade is likely to play an increasing role in meeting the growing demand from food-deficit countries. On the other hand, greater trade openness may undermine the capacity of local people to produce their own food,” he added.
Kenyan banks find entry into Ethiopia's closed economy (Daily Nation)
Kenyan banks have finally found a window of opportunity in Ethiopia’s closed economy. Local banks attempted in vain to enter the Eastern Africa’s most restricted economy in 2013. However, the lenders seem to have found an entry point with Kenya Commercial Bank on Thursday announcing it had received a licence to open a representative office in Ethiopia.
COMESA: Central banks propose to enshrine price stability in law
This was one of the recommendations that emerged from a validation workshop on a study conducted by the Central Banks titled “Effects of Fiscal Policy on the Conduct and Transmission Mechanism of Monetary Policy in Selected COMESA Member Countries”. The study identified the key challenges of implementing monetary and fiscal policies and made recommendations aimed at ensuring the effectiveness of fiscal and monetary policy coordination based on best international practices. During the workshop hosted by the COMESA Monetary Institute (CMI) in Nairobi from 19th to 20th October 2015 the delegates also recommended the curtailing of fiscal dominance to contain uncertainties in the conduct of monetary policy. [Workshop details]
Egypt: New CBE head, same problems (Ahram)
Almost a month from today the Central Bank of Egypt will be getting a new chief, Tarek Amer. He will replace Hisham Ramez, who has been in office for around two-and-a-half years. The change in CBE leadership comes amidst tough economic conditions characterised by shrinking foreign reserves and a local currency that is losing its value to the dollar. The Egyptian pound has lost 11 per cent of its value since January 2015.
EAC revenue officials meet to bolster anti-graft initiatives (New Times)
Revenue collection officials from East Africa are in Kigali for a three-day meeting on integrity, ethical culture and professionalism enhancement in fighting corruption and increasing revenue collection for economic development. They will review progress in implementing previous decisions and recommendations, then each country will present its own corruption survey statistics for the past three years, according to Stella Cosmos, the chairperson of the committee and director of internal affairs at the Tanzania Revenue Authority.
Money laundering will become difficult in next 1-2 years: Jaitley (The Hindu)
Finance Minister Arun Jaitley on Monday said tax evasion and money laundering will become “extremely difficult” in the next 1-2 years, with real-time global automatic exchange of information system coming into effect.
Global Forum on Transparency and Exchange of Information for Tax Purposes: statement of outcomes (OECD)
Mozambique’s conformity with trade facilitation agreements: part 2 of the baseline analysis (SPEED)
Mozambique is party to more than a dozen international agreements directly related to trade, whether on a bilateral, regional, continental, historical, or multilateral level (see Table 1). In reality, there are dozens more relevant agreements, as international initiatives on product standards, process standards, statistical reporting, financial flows, food safety, environmental protection, and labor protections all bring to bear a significant impact on trading patterns and the competitiveness of Mozambique’s products, services and labour.
Confederation of Tanzania Industries: 'This is what to do to boost industrial growth' (The Citizen)
The CTI has asked the next government to improve the conditions that will lead to an enhanced industrial sector in the country. CTI executive director Mr Leodegar Tenga said in a statement yesterday that the President-elect Dr John Magufuli, should ensure Tanzania has a consistent and effective tax system which “has never been stable over the years.”
Why EAC competition law is key in efforts to spur growth (Business Daily)
There needs to be capacity building at the national and regional level in support of the EAC competition regime, which might involve training personnel on competition law and policy and its enforcement; funding regional and national competition agencies; and increasing advocacy on the benefits of a competitive market to all stakeholders. [The author: Elizabeth Sisenda]
Should Africa worry about the potential demise of US EXIM Bank? (Lexology)
But Africa is too big to be contained by these constraints in vision. The current stalemate over the future of the US EXIM Bank illustrates more broadly that if the US can't get it together to engage productively with Africa, others will no doubt fill the void, including through supporting the export of alternative goods from their countries to Africa. Should that prove to be the case, US companies and the workers they employ may turn out to be hurt the most by this outcome. [The authors: Thomas W. Laryea and Gary L. Goldberg]
WTO reports levelling of new G20 trade restrictions, but stockpile grows
Commenting on the report, Director-General Roberto Azevêdo said: “The WTO's system of trade rules helped to prevent a major protectionist response in the wake of the financial crisis – but the number of trade-restrictive measures that have been introduced remains a cause for concern. The G‑20 should show leadership by eliminating existing trade restrictions. As WTO Members prepare for our 10th Ministerial Conference in Nairobi in December, the G-20 will play a central role in our efforts to deliver outcomes which both strengthen the WTO's role as a backstop against protectionism, and boost growth and development around the world.”
India shares bilateral investment treaty draft copy with US; to quicken negotiations (Economic Times)
With the US keen on accelerating the BIT negotiations process, India has shared with it the draft copy of the proposed bilateral investment treaty that awaits Cabinet approval. During the US-India Trade Policy Forum meeting that concluded yesterday, Indian officials told their American counterparts that they would be in a better position to talk on it once the draft of the model text for the bilateral investment treaty (BIT) is approved by the Cabinet.
Asia-Pacific Trade and Investment Report 2015 (ESCAP)
The regional trade and investment flows in Asia and the Pacific is decelerating as the economies in the region adjust to cyclical and structural changes resulting from the global economic downturn and the expected reduction in China’s growth rate, says a new United Nations report. According to the report’s analysis of the latest regional trade and investment outlook in the region, total exports and imports from the region grew by only 1.6% in 2014. When China is excluded from the regional total, exports from the Asia-Pacific region registered a decline of 0.4%
Cecile Fruhman: 'The reforms behind the Doing Business rankings' (World Bank Blogs)
2014 Global Findex microdata provides a closer look at people’s use of financial services (World Bank Blogs)
DRC: Comparing cash and voucher transfers in a humanitarian context (World Bank)
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WTO reports levelling of new G20 trade restrictions, but stockpile grows
The WTO’s fourteenth trade monitoring report on G20 trade measures, issued on 2 November, shows the application of new trade-restrictive measures by G20 economies remained stable compared to the previous reporting period.
Although the report shows relative restraint by G20 economies in introducing new trade restrictions, the stockpile of measures continues to grow. Because the uncertain global economic outlook continues to have a negative impact on international trade, the report calls on G20 leaders to deliver on their pledge to refrain from implementing new protectionist measures and to roll back existing trade-restrictive measures.
Commenting on the report, Director-General Roberto Azevêdo said:
“The WTO's system of trade rules helped to prevent a major protectionist response in the wake of the financial crisis – but the number of trade-restrictive measures that have been introduced remains a cause for concern. The G‑20 should show leadership by eliminating existing trade restrictions.”
“As WTO Members prepare for our 10th Ministerial Conference in Nairobi in December, the G-20 will play a central role in our efforts to deliver outcomes which both strengthen the WTO's role as a backstop against protectionism, and boost growth and development around the world.”
Key Findings
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In the reporting period between mid-May and mid-October, G-20 economies applied 86 new trade-restrictive measures. This equates to an average of just over 17 new measures per month indicating that the rate has remained stable compared to the previous reporting period.
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The overall stockpile of restrictive measures introduced by G-20 economies nevertheless continues to grow. Of the 1,441 trade-restrictive measures, including trade remedies, introduced by G-20 economies since 2008 and recorded by this exercise, only 354 had been removed by mid-October 2015.
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The total number of those restrictive measures still in place now stands at 1,087 – up by more than 5% compared to the last report. Despite the G‑20 pledge to roll back protectionist measures, therefore, more than 75% of those implemented since 2008 remain in place.
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Although G-20 members are eliminating some of their trade-restrictive measures, the rate by which this is done remains insufficient to seriously dent the stockpile.
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The report also finds that during the reporting period a total of 62 measures aimed at facilitating trade were taken – a monthly average of 12 measures – the lowest number since November 2013.
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More encouragingly the number of trade remedy investigations by G-20 economies has fallen significantly during this reporting period. This decline is primarily because of a drop in the number of anti-dumping initiations and confirms a trend identified in the last monitoring report.
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During this review period global economic growth remained modest, and continued to be unevenly distributed across countries and regions. The downturn in world trade observed at the time of the last monitoring report continued in the second quarter of the year.
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The WTO Secretariat recently (30 September 2015) lowered its forecast for world merchandise trade volume growth in 2015 from 3.3% to 2.8%, and reduced its estimate for 2016 from 4.0% to 3.9%.
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As WTO Members prepare for the 10th Ministerial Conference in Nairobi in December, the G‑20 should seek to set an example in eliminating existing trade restrictions and pursuing further multilateral trade liberalization. The WTO’s role in ensuring a stable, transparent and predictable trading environment will continue to provide a solid backstop against protectionism.
WTO report on G-20 trade measures: Executive Summary
This is the fourteenth trade monitoring report on G-20 trade measures. It covers the period from 16 May to 15 October 2015.
This report shows that the application of new trade-restrictive measures by G‑20 economies has remained stable compared to the previous reporting period. Since mid-May 2015, G-20 economies applied 86 new trade-restrictive measures over the period – an average of just over 17 new measures per month. The continuing decrease in the number of trade remedy investigations by G‑20 economies is a significant factor in the stability of the overall monthly figure, as the average number of restrictive measures applied to imports and exports increased per month.
G-20 economies adopted 62 measures aimed at facilitating trade during the period under review. At just over 12 trade-facilitating measures per month, this is considerably lower than the three previous reports. In a reversal of a trend which started at the end of 2013, the present review period has seen G-20 economies apply more restrictive (other than trade remedies) than facilitating measures. For the first time since mid-May 2014 the monthly average of all trade‑restrictive measures (other than trade remedies) introduced by G-20 economies is higher than the monthly average of all trade-facilitating measures.
Although the present review period continues to show a trend of relative G-20 restraint with respect to the introduction of new trade restrictions, the deceleration of the number of trade‑facilitating measures is a new development. At this juncture, the reasons behind this slowdown in new trade-facilitating measures are not immediately obvious and will require further monitoring in the next report.
Overall, the stockpile of restrictive measures introduced by G-20 economies continues to grow. Of the 1,441 trade-restrictive measures (including trade remedies) introduced by G-20 economies since 2008 and recorded by this exercise, only 354 had been removed by mid-October 2015. The total number of these restrictive measures still in place now stands at 1,087 – up by 5.4% compared to the last report. Although trade-restrictive measures are being eliminated, the rate at which this is done is insufficient to seriously dent the overall stockpile of restrictive measures. Of the total number of trade-restrictive measures implemented since 2008, the share of removals has increased slightly but continues to make up less than 25%.
The downturn in world trade that was observed at the time of the last report continued in the second quarter. Global economic growth was modest during the review period, and continues to be unevenly distributed across countries and regions. Output rebounded in the United States in the second quarter following a weak first quarter, but employment growth has slowed more recently. The European Union (EU) has also showed signs of resilience after a long period of stagnation, but unemployment remains high. China’s GDP growth in Q2 and Q3 was in line with government targets, but other indicators of economic activity and business sentiment were less upbeat, suggesting slower growth ahead. Prices for primary commodities including oil are down sharply from last year, squeezing exporters such as Brazil and the Russian Federation. Meanwhile, exchange rates have undergone important shifts: the U.S. dollar has appreciated further since the last report, while the Chinese yuan’s link to the U.S. currency has been loosened. Finally, anticipated changes in U.S. monetary policy and recurring bouts of volatility in financial markets have stoked uncertainty. In light of these developments, the WTO Secretariat recently lowered its forecast for world merchandise trade volume growth in 2015 to 2.8%, and reduced its estimate for 2016 to 3.9%.
The number of trade remedy investigations initiated by G-20 economies has fallen significantly recently. This decline owes primarily to a drop in the number of anti-dumping initiations which constitute the bulk of trade remedy measures. Various metal products, chemicals and plastics and rubber account for the largest shares of anti-dumping and countervailing initiations. China and the Republic of Korea are the countries most affected by initiations of trade remedy investigations. An analysis of sunset reviews of anti-dumping and countervailing measures initiated in 2008 and 2009 seems to indicate that there is no discernible change in extension versus expiry of measures coinciding with the financial crisis.
Although an increased number of notifications of trade measures to the WTO does not automatically imply greater use of protectionist policies, it remains that record levels of notifications on sanitary and phytosanitary measures were registered in 2015. Almost three-fourths of the specific trade concerns (STCs) discussed in the Committee target measures maintained by G-20 economies. A significant increase in the number of TBT-related STCs discussed in 2015 was also noteworthy. 80% of new STCs raised during the period under review were directed at G-20 economies – a significant increase over the previous period.
In the area of agriculture, the review period saw an unprecedented high number of implementation-related concerns raised with G-20 economies. Several G-20 domestic support notifications received particular scrutiny during the period under review.
In the area of general economic support measures, the period under review revealed that the main beneficiaries were found in the agricultural sector (including projects citing environment and climate commitments), selected industries in the manufacturing sector (in particular auto-related) and a number of infrastructure-related programmes. Other programmes offer access to debt relief or preferential credit lines for exporters.
In the area of services, the period under review witnessed several important policy developments in such diverse sectors as financial services, transport services, telecommunications and ICT, engineering services, tourism, health services and services supplied through the movement of natural persons. The large majority of the policies adopted during the period under review reflect liberalizing measures.
Several other important trade-related developments involving G-20 economies, as well as other WTO Members, also took place during 2015. These include the adoption of the Trade Facilitation Agreement, the expansion of the Information Technology Agreement, the Global Review of Aid for Trade and new initiatives in the area of Regional Trade Agreements. These developments will be explored in more detail in the Director-General’s Annual Report for the Overview of Developments in the International Trading Environment.
This fourteenth report on G-20 trade measures has emphasized the uncertain global economic outlook which continues to impact international trade adversely. The G-20 economies face a number of important challenges to deliver on their collective pledge to refrain from implementing new measures taken for protectionist purposes and to remove existing ones. The review period covered by the present report shows that any effective roll-back of trade-restrictive measures is failing to make headway.
Fourteenth UNCTAD-OECD Report on G20 Investment Measures
Investment policy changes introduced by G20 members between mid-May and mid-October 2015 mostly enhanced openness for international investment. The findings were prepared by UNCTAD and the OECD in response to the G20 Brisbane summit and are part of a wider report on trade and investment measures in the G20 issued periodically by UNCTAD, the OECD and the WTO.
The joint UNCTAD-OECD report indicates that G20 members have refrained from raising new barriers to investment as reiterated in their commitment at the Brisbane summit in 2014.
This confirms the long term trend since the monitoring of G20 policy measures began in 2009 – expressed in numbers, well over 80 per cent of newly taken measures specific to foreign direct investment were liberalizing in nature.
According to the Report, during the reporting period the following measures were adopted:
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Three G20 members – P.R. China, India and Saudi Arabia – amended their investment-specific policies.
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One G20 member – P.R. China – amended its investment policy related to national security.
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Nine G20 members – Australia, Brazil, Canada, P.R. China, Japan, Republic of Korea, Mexico, the Russian Federation and Turkey – concluded three bilateral investment treaties (BITs) and six other international investment agreements (“other IIAs”).
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One G20 member – Indonesia – sent notices of termination for two of its BITs.
Beyond their commitment to standstill, the report invites G-20 Leaders to consider ways and means to effectively promote investment to boost global economic growth, trade, employment and sustainable development. There is a need for G-20 collective leadership in this regard.