News Archive October 2015
tralac’s Daily News selection: 30 October 2015
The selection: Friday, 30 October
Just released: South Africa’s September 2015 trade statistics
The India-Africa Forum Summit: outcome documents, commentaries
On trade and Industry: Work closely together within the framework of the Tripartite Free Trade Agreement which brought together SADC, EAC and COMESA for the expansion of trade and investment linkages and extend the framework to other Regional Economic Communities
Support the establishment of the Continental Free Trade Area aimed at integrating Africa’s markets in line with the objectives and principles enunciated in the Abuja Treaty, establishing the African Economic Community and its resolve to support the work of the Continental Free Trade Area-Negotiating Forum towards concluding the negotiations by 2017;
Promote Public Private Partnership by encouraging Indian businesses to set up skills development units in African industrial zones with the aim to train African engineers, technicians, managers and workers as well as other experts in areas such as food security and solar energy;
While underlying the importance of private investment in achieving sustainable and inclusive economic growth, the two sides decide to share experience and knowledge in this regard, and to:
Embark on sensitization efforts to create greater awareness of India's DFTP scheme among businesses in Africa and appeal for the extension of this duty free preference scheme to all African states; Accelerate trade between Africa and India through a coordination mechanism composed of representatives of the Government of India and the African diplomatic Missions represented in India to promote investment from Africa into India and facilitate the setting up of African-owned businesses in India;
Summit speeches and national statements can be accessed here
President Kenyatta calls for value addition (Daily Nation), Make in South Africa, says foreign minister Nkoana Mashabane (Economic Times), Frannie Leautier: 'Africa is facing new challenges' (IOL), More power to Indo-Africa partnership (editorial comment, Economic Times)
Continental Sanitary and Phytosanitary Committee for Africa (African Union)
The main aim of the Continental SPS Committee is to support the implementation of Comprehensive African Agriculture Development Programme through ensuring the coordination of SPS matters. The specific task of the Continental SPS Committee would be to mainstream SPS issues (food safety, plant and animal health) into CAADP implementation and other agriculture, trade-related, and environmental initiatives within its results framework. The meeting of the Continental SPS Committee, scheduled for October 28-30 2015 in Kampala, is to attain the following objectives:
Roberto Azevêdo: ‘More flexibility needed to achieve outcomes in Nairobi’ (WTO)
“While members have identified some important potential deliverables for Nairobi, they should not be taken for granted. I have always said that we need to work hard and show both flexibility and a willingness to contribute if we are going to make progress. But those elements have not materialised, and so the reality is that we are not moving forward. “We need two things for success at the Ministerial Conference. First we need serious engagement on substance in the Negotiating Groups. Second, members need to rethink the red lines that they have been drawing. We must see more flexibility and pragmatism in the handful of days and weeks remaining if we want to have positive outcomes in Nairobi.”
WTO MC10: Developing countries propose reforms on agriculture, cotton, safeguards (Bridges)
The WTO has released new editions of its four key statistical publications: International trade statistics, Trade profiles, World tariff profiles and Services profiles. The four publications provide detailed breakdowns of the latest data on world trade.
The share of national income going to labour has declined in almost all G20 countries, with productivity rising much faster than real wages. Within the labour share, the highest earners have captured an increasingly large portion, while those at the bottom have seen their shares decline significantly. Many emerging G20 economies, despite having lifted millions of people out of absolute poverty over the past two decades, have seen sharp increases in income inequality. Overall, the reality for emerging markets and developing countries is more mixed than for the developed world. Inequality has been increasing in some – such as Indonesia and China – while falling in others – such as Brazil and Argentina.
Using the International Futures forecasting system, this paper first presents a plausible long-term population forecast for Namibia. This forecast is then used to assess key targets from the National Development Plan (NDP4) and Vision 2030, Namibia’s long-term development strategy. The paper then plots three scenarios to chart Namibia’s potential progress. [The author: Steve Hedden]
Namibia: Urban migration will require massive capital investment (New Era)
With Namibia’s urban population projected to increase from the recorded 33% in 2001 to approximately 75% in 2030, the rural urban migration phenomenon will require major capital investments to provide access to water and sanitation services. This will especially apply to the very poor who cannot and will not be able to afford to pay for these absolutely essential services, says Minister of Agriculture, Water and Forestry John Mutorwa. Mutorwa sent out this warning on Tuesday when he addressed the SADC Future Challenges Forum on Food, Water and Energy Security at the Polytechnic of Namibia.
The Namibian agricultural sector is still reeling from the effects of the 2013 drought (the worst in 35 years) and the prolonged dry spell of 2014/15. Some 550 000 Namibians are in direct need of food aid now and government has rolled out a comprehensive drought food aid programme worth more than N$55 million.
Namibia: Solidarity tax compulsory (The Namibian)
The solidarity tax announced by President Hage Geingob this week will be compulsory for both individuals and corporate entities, State House confirmed yesterday. Aochamub said the tax will be a significant component of a complex set of measures to eradicate poverty by 2025.
Rovuma Basin Resources: update (Club of Mozambique)
The Mozambican state could gain as much as $212bn in taxes, dividends, bonuses and other payments over the lifetime of the liquefied natural gas project in Palma, in the northern province of Cabo Delgado, according to the chairperson of the National Hydrocarbon Company, Omar Mitha. Mitha’s calculations are that, if only two LNG trains are built, payments to the state will amount to $67bn dollars in the project’s lifetime (up to 2035). But if six trains are built, then payments will rise to $212bn dollars. With six trains, Mitha put the increase in Mozambican GDP by 2035 at $39bn dollars. Per capita GDP, he added, would rise from the 2014 figure of $650 to $4,500 in 2035, in real terms.
Mozambique: discussions on the 5th Review under the PSI (IMF)
“While medium-term prospects remain positive, short-term challenges have become more complex. As other countries in the region, Mozambique is currently experiencing an external shock associated with the drop in commodity prices, lower growth in trading partners, and delays in investment associated with large natural resource projects. Excessively expansionary policies in 2014 (especially on the fiscal side) also contributed to the current difficulties the country is facing. Imports have continued to grow at a fast pace at 17% year-on-year, while exports have stagnated. Capital inflows have also declined substantially compared to a year ago. This has created pressures in the foreign exchange market and has caused a sharp decline in international reserves and a depreciation of the metical."
Maritime experts have said ports in African countries are designed mostly for imports rather than export, noting that not less than 90% of the income accruing into the African continent is used to fund import. According to them, design and location of ports in African countries do not make room for export trade whereas in Western states ports are designed purposely for exports. The maritime experts stated this in a communiqué issued at the end of the just concluded inaugural edition of the international sea trade and investment convention 2015 with the theme “Exploring New Trade Frontiers.”
South Africa's Transnet: Ports still the best ‘Gateway into Africa’ (Shipping News), Transnet able to take on more debt to build infrastructure (Business Day), Higher volumes at ports lift Transnet (Business Day)
Mozambique: Quantifying spillover effects from large farm establishments (World Bank)
Almost a decade after large land-based investment for agriculture increased sharply, opinions on its impact continue to diverge, partly because (positive or negative) spillovers on neighbouring smallholders have never been rigorously assessed. Applying methods from the urban literature on Mozambican data suggests that changes in the number and area of large farms within 25 or 50 kilometers of these investments raised use of improved practices, animal traction, and inputs by small farmers without increasing cultivated area or participation in output, credit, and nonfarm labor markets; or, once these factors are controlled for, yields. The limited scope and modest size of the estimated benefits point toward considerable unrealized potential. The paper discusses ways to systematically explore the size of such potential and the extent to which it is realized.
Last week, business people from the Confederation of Zimbabwe Industry and Business Botswana met in a forum to strengthen trade ties between the two countries’ business communities and consider joint venture opportunities.
Health finance successes in SADC: service provider needed (FinMark Trust)
Standard Bank Group has expanded its East African footprint with the official opening of a representative office in Ethiopia. The bank's chief executive, Ben Kruger, who opened the representative office in Addis Ababa, said on Friday the growth potential for the East African region continued to attract significant investment. “We are able to leverage our strong position on the continent, our strategic partnership with the Industrial and Commercial Bank of China (ICBC), and our sector expertise in natural resources to facilitate capital investment in support of growth, and to connect African markets to each other,” Kruger said.
In the envisaged transition from “made in China” to “created in China”, the service sector is expected to play a prominent role. To that end, the service sector is gradually being provided a more even playing field as privileges for manufacturing industries are being withdrawn and a more equal treatment of producers across sectors is being adopted. This paper provides a snapshot of the service sector, its size, the ownership of its firms, and productivity across types of firms depending on ownership, sector, age, size and region.
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South Africa Merchandise Trade Statistics for September 2015
The South African Revenue Service (SARS) on 30 October released trade statistics for September 2015 that recorded a trade deficit of R0.89 billion. This figure includes trade data with Botswana, Lesotho, Namibia and Swaziland (BLNS).
Including trade data with Botswana, Lesotho, Namibia and Swaziland (BLNS)
The R0.89 billion deficit for September 2015 is due to exports of R92.28 billion and imports of R93.17 billion. Exports increased from August 2015 to September 2015 by R4.86 billion (5.6%) and imports decreased from August 2015 to September 2015 by R4.39 billion (4.5%).
The cumulative deficit for 2015 is R37.35 billion compared to R73.37 billion in 2014.
The month of August 2015 trade balance deficit was revised upwards by R0.19 billion from the previous month’s preliminary deficit of R9.95 billion to a revised deficit of R10.14 billion.
September 2015 Overview
|R 92,284,169,052||R 93,169,251,211|
|Trade Deficit: R -885,082,159|
|Top 5 countries we exported to:||Top 5 countries we imported from:|
| || |
Trade highlights by category
The month-on-month export movements (R’ million):
|Mineral Products||+ R2 627||+ 15.8%|
|Vehicle & Transport Equipment||+ R1 242||+ 10.9%|
|Chemical Products||+ R855||+ 16.4%|
|Precious Metals & Stones||- R 421||- 2.6%|
|Vegetable Products||- R 614||- 10.7%|
The month-on-month import movements (R’ million):
|Mineral Products||- R 4 530||- 27.8%|
|Vehicle & Transport Equipment||- R3 107||- 27.7%|
|Chemical Products||- R1 184||- 10.5%|
|Vegetable Products||+ R1 233||+ 62.3%|
|Machinery & Electronics||+ R1 028||+ 4.5%|
Trade highlights by world zone
The world zone results from August 2015 to September 2015 are given below.
Trade surplus: R19 960 million – This is a 30.5% increase in comparison to the R15 293 million surplus recorded in August 2015.
Trade deficit: R1 732 million – This is a 41.3% decrease in comparison to the R2 950 million deficit recorded in August 2015.
Trade deficit: R18 624 million – This is a 2.6% decrease in comparison to the R19 114 million deficit recorded in August 2015.
Trade deficit: R6 610 million – This is a 28.6% decrease in comparison to the R9 261 million deficit recorded in August 2015.
Trade surplus: R 79 million – This is an improvement compared to the R 136 million deficit recorded in August 2015.
Excluding trade data with Botswana, Lesotho, Namibia and Swaziland (BLNS)
The trade data excluding BLNS for September 2015 recorded a trade deficit of R10.12 billion, with exports of R80.05 billion and imports of R90.17 billion. Exports increased from August 2015 to September 2015 by R4.31 billion (5.7%) and imports decreased from August 2015 to September 2015 by R4.81 billion (5.1%).
The cumulative deficit for 2015 is R115.89 billion compared to R149.02 billion in 2014.
Trade highlights by category
The month-on-month export movements (R’ million):
|Mineral Products||+ R2 556||+ 17.3%|
|Vehicles & Transport Equipment||+ R1 163||+ 11.6%|
|Chemical Products||+ R 715||+ 16.7%|
|Base Metals||+ R 256||+ 2.8%|
|Vegetable Product||- R 607||- 11.7%|
The month-on-month import movements (R’ million):
|Mineral Products||- R4 550||- 28.0%|
|Vehicles & Transport Equipment||- R3 129||- 28.0%|
|Chemical Products||- R1 428||- 13.2%|
|Vegetable Product||+ R1 235||+ 63.7%|
|Machinery & Electronics||+ R1 006||+ 4.5%|
Trade highlights by world zone
The world zone results from August 2015 to September 2015 are given below.
Trade surplus: R10 725 million – This is a 73.5% increase in comparison to the R6 183 million surplus recorded in August 2015.
Botswana, Lesotho, Namibia and Swaziland (Only)
Trade statistics with the BLNS for September 2015 recorded a trade surplus of R9.23 billion, with exports of R12.24 billion and imports of R3.00 billion. Exports increased from August 2015 to September 2015 by R0.55 billion (4.7%) and imports increased from August 2015 to September 2015 by R0.42 billion (16.4%).
The cumulative surplus for 2015 is R78.54 billion compared to R75.65 billion in 2014.
Trade Highlights by Category
The month-on-month export movements (R’ million):
|Chemical Products||+ R 140||+ 14.7%|
|Prepared Foodstuff||+ R 129||+ 12.8%|
|Vehicles & Transport Equipment||+ R 79||+ 5.8%|
|Mineral Products||+ R 71||+ 3.8%|
|Precious Metals & Stones||- R 171||- 20.0%|
The month-on-month import movements (R’ million):
|Chemical Products||+ R 244||+ 53.3%|
|Precious Metals & Stones||+ R 72||+ 24.6%|
|Textiles||+ R 69||+ 19.4%|
|Vehicles & Transport Equipment||+ R 22||+ 111.7%|
|Live Animals||- R 32||- 10.1%|
Third India-Africa Forum Summit: Delhi Declaration 2015
Partners in Progress: Towards a Dynamic and Transformative Development Agenda
1. We, the Heads of State and Government and Heads of Delegation representing the continent of Africa, the African Union (AU) and its Institutions, and the Prime Minister of the Republic of India, met in New Delhi, India on 29 October 2015 for the Third India-Africa Forum Summit, under the theme: ‘Partners in Progress: Towards a Dynamic and Transformative Development Agenda’;
2. We recall the Declarations adopted during our First Summit in New Delhi (8-9 April 2008) and our Second Summit held in Addis Ababa (24-25 May 2011) and the Framework of Enhanced Cooperation and the associated plan agreed upon thereafter as providing a concrete foundation for the consolidation of our strategic partnership;
3. We note that Indians and Africans together comprise nearly one-third of humanity today. However, they continue to be excluded from appropriate representation in the institutions of global governance that were designed for an era since long past. This Summit takes place in the 70th anniversary year of the United Nations. It is also the first since the 50 years of establishment of the OAU/AU as a symbol of pan-Africanism and African Renaissance and the adoption of the 50th Anniversary Solemn Declaration and shortly following the landmark adoption of the Agenda 2063 by the African Union. This is also the first since the landmark 50th anniversary of the Group of 77 last year. We demand urgent collective action to put in place more democratic global governance structures that will assist in more equitable and just international security and development frameworks;
4. We also note that 2015 has been a landmark year as we, along with other partners, have defined a set of Sustainable Development Goals as part of the broader 2030 Agenda for Sustainable Development, adopted by the UN General Assembly, with a special emphasis on Financing for Development, on which the 3rd International Conference was hosted in Addis Ababa. The international community will gather in Paris in November 2015, to conclude an ambitious agreement to combat Climate Change. This will be closely followed by the 10th Ministerial Meeting of the WTO in Nairobi;
5. We look forward to finalizing within the forthcoming global climate change negotiations an ambitious and comprehensive climate change agreement based on the principles of equity and common but differentiated responsibility. The challenge of global warming can only be addressed adequately through technological solutions and the financial resources to manage the transition. The developing countries, while undertaking ambitious actions on their own, need to be assisted to mitigate climate change and to adapt and adjust to its impact;
6. We underscore the special concerns and priorities of the African countries relating to economic and development needs and that protection against vulnerabilities require collective action by the international community. The SDGs build on and strengthen our commitment to the MDGs, focus on economic growth, industrialization, infrastructure and employment as the fundamental drivers of sustainable development and contain an ambitious set of means of implementation to assist developing countries, a package that is being complemented by the Addis Ababa Action Agenda. The need for a supportive international economic environment, enhanced investment flows, a supportive multilateral trade regime and a strengthened framework for technology collaborations, has never been greater to foster and sustain economic growth, eradicate poverty and promote sustainable development. The reform of the international financial system to make it more democratic and more responsive to the needs of the developing countries must be pursued in a sustained manner;
7. We further recognize that the peoples of Africa and India have known each other and traded across the Indian Ocean for millennia. Our shared common experience of a colonial past and the solidarity of our resistance to it, have cemented our common yearning for a more just and fair international political and economic order in an increasingly globalized world. Africa and India represent rapidly growing economies with demographic advantages and are building on their longstanding development partnership including through the active participation of the Indian Diaspora across the African Continent ;
8. We acknowledge that our partnership is grounded in the core recognition that our people are our fundamental resources and that capable and skilled human resources are the foundation for building prosperity for all;
9. We reiterate our commitment to further enhance Africa-India relations in the political, economic and socio-cultural domains based on the principles of mutuality, complementarity and true sense of solidarity as well as the promotion of people to people interactions;
10. We recognize that cooperation in providing widespread access to quality education though scholarships for students and the reach of tele-education utilizing modern communication technology provides great strength to our peoples and institutions. Equally important is skills development to empower workers and enable the development of various economic sectors. This is another area of our ongoing cooperation through extensive programmes of training, capacity building, setting up of training centers and other institutions;
11. We are committed to promoting gender equality and empowerment of women more so since 2015 is designated by the African Union as the Year of Women’s Empowerment and Development. Harnessing talents and abilities of women will greatly help make poverty eradication irreversible, protect and promote human rights and build more nonviolent and environmentally sustainable societies;
12. We confirm our respect for the sovereignty and territorial integrity of States as well as for noninterference in their internal affairs;
13. We reaffirm our respect for human rights as well as the principles of equality and mutual benefit;
14. We believe that the United Nations should function in a transparent, efficient and effective manner and that the composition of the central organs must reflect contemporary realities in order to work towards the 2030 Agenda for Sustainable Development and tackle the challenges of a world shrunk by the modern forces of globalization, facing threats ranging from a vastly transformed security environment to climate change;
15. We reaffirm our strong commitment for a comprehensive Reform of the United Nations system, including its Security Council, to make it more regionally representative, democratic, accountable and effective;
16. We recognize that the longstanding and multifaceted Africa-India development partnership is based on equality, friendship and solidarity, represents South-South cooperation in all its dimensions, which encompass human resource development through scholarships, training, capacity building; financial assistance through grants and soft credit to implement various public goods projects, including for education, healthcare and infrastructure; trade preferences; technology collaborations; humanitarian, financial and in-kind assistance in emergency situations; maritime cooperation; deployment of peacekeeping troops who also conduct a range of development and humanitarian tasks; collective negotiations in multilateral fora for common causes and concerns, among others;
17. We acknowledge that terrorism and violent extremism have emerged as primary threats to nations and our societies and condemn them in all their forms and manifestations. The menace of non-state actors including armed groups has acquired a new dimension as they expanded geographically, acquired resources and new instruments to spread extremist ideology and draw recruits. Tackling this challenge requires global strategy and cooperation. We emphasize that no cause or grievance can justify acts of terror and resolve to maintain zero tolerance against terrorism. We call on all countries to ensure that their territories are not used for cross-border terrorist activities. We strongly condemn direct or indirect financial assistance given to terrorist groups or individual members thereof by States or their machinery, to pursue such activities;
18. We emphasize our strong obligation to fight drugs and human trafficking and other forms of transnational organized crimes such as hostage taking, piracy, and illicit proliferation of small arms and light weapons and reiterate our resolve and commitment to work together in this regard;
19. We recognize that the growing trade, investment and technology linkages provide a solid foundation to our engagement since our businesses, through such linkages, provide a strong dimension to our partnership. In this regard, we welcome the signing of the Tripartite Free Trade Agreement (TFTA) in Sharm El Sheikh, Egypt, by the leaders of 26 African countries belonging to the three Regional Economic Communities – Southern African Development Community (SADC), East African Community (EAC) and Common Market for East and Southern Africa (COMESA). India commends the African Union on the launching of the negotiation process for the establishment of the Continental Free Trade Area (CFTA) aimed at integrating Africa’s markets in line with the objectives and principles enunciated in the Abuja Treaty, establishing the African Economic Community (AEC) and its resolve to support the work of the Continental Free Trade Area-Negotiating Forum (CFTA-NF) towards concluding the negotiations by 2017. India looks forward to working closely together with these emerging economic architectures for the expansion of trade and investment linkages;
20. We further recognize the huge potential for expansion of trade and investment between Africa and India, and Africa appreciates the commitment of India to continue to contribute significantly to building African Institutions and capacities through supporting industrialization and enhancing beneficiation and value addition processing of raw materials in Africa;
21. We note that Africa and India, besides having large landmasses, have very long coastlines and a large number of island territories. We recognize the importance of the oceans and seas to the livelihoods of our peoples and that maritime security is a pre-requisite for the development of the Blue/Ocean economy. India would work to support Africa, as appropriate, in the implementation of the AU 2050 Africa’s Integrated Maritime (AIM) Strategy in accordance with International Maritime Law;
22. We take into account that new international security environment and the evolving nature of conflicts are posing new challenges on the effectiveness of the traditional peacekeeping missions;
23. We appreciate the connection between Africa’s Agenda 2063 with its First Ten Year Implementation Plan and the focused priorities being pursued by the Government of India which should help towards working to build peace and prosperity for our peoples through poverty eradication, provision of healthcare, education, employment, access to modern energy services, infrastructure, connectivity between resources and markets;
24. We recognize that healthy communities across gender and age are our moral responsibility and essential for people to contribute effectively to economic development. Providing universal access to primary healthcare and battling diseases are our common urgent priorities. In this regard, the access to quality and affordable medicines and treatment is a crucial area of our cooperation;
25. We note that the space technologies are instrumental in enabling long term development plans as well as managing short term emergencies; and that digital information and communication technologies are rapidly transforming our world. Connectivity and access to these technologies that permeate all sectors of economy including education, healthcare, manufacturing, trading, financial services; and society is greatly empowering for peoples;
26. We acknowledge that the Duty Free Tariff Preference scheme offered by India would play a significant role in increasing trade between Africa and India and underline the need to create a conducive environment for the extension of the scheme to all African countries;
27. We agree that improving the productivity of agriculture, with a sustainable and judicious use of inputs is vital to ensure food and nutritional security which represents a significant challenge and opportunity for all of us. In this regard, we appreciate Africa’s continental projects such as the Comprehensive Africa Agricultural Development Program (CAADP);
28. We support the Program for Infrastructure Development in Africa (PIDA) and underscore the importance of enhancing cooperation in the Blue/Ocean Economy due to its strategic importance to the two parties;
29. We commit to address bottlenecks that have slowed down the progress of the Africa-India Partnership and agree to put in place the necessary financing mechanism to ensure the full implementation of the Action Plans of the India-Africa Forum Summits;
30. We appreciate the need to further deepen our friendship and enhance our partnership focusing on more concrete and implementable areas of cooperation that would impact positively on the lives of the peoples of Africa and India.
31. We agree to cooperate in the following fields:
Continue to work together in promoting investment exchanges and encourage establishment of direct trade relations through opening of new markets and raising the level of trade relations between the two sides in order to contribute to sustainable growth and economic development;
Support long term capital flows to Africa to stimulate investment, especially in Infrastructure and in this regard, support the Program for Infrastructure Development in Africa (PIDA), particularly with regard to increasing financial flows to the program. Call equally upon all members of the international community to remove and cease imposing unilaterally motivated economic coercive measures jeopardizing the movement of funds, trade exchanges and socio-economic development;
Call upon the international community to expedite the process of enabling African Heavily Indebted Poor Countries (HIPCs) to benefit from all initiatives aiming at alleviating the burden of debts for HIPCs, within the agreed concepts and principles of sustainable development;
Enhance collaboration in the use and development of appropriate technologies as well as in emerging and high technology areas since technology provides solutions to many of our common challenges;
Cooperate and coordinate in the field of women empowerment, enhancing women's economic, social and legal status, providing women with job opportunities and better chances to participate in the economic, social and political spheres and continue joint efforts aimed at eradicating discrimination against women;
ii) Trade and Industry
Work closely together within the framework of the Tripartite Free Trade Agreement (TFTA) which brought together SADC, EAC and COMESA for the expansion of trade and investment linkages and extend the framework to other Regional Economic Communities;
Support the establishment of the Continental Free Trade Area (CFTA) aimed at integrating Africa’s markets in line with the objectives and principles enunciated in the Abuja Treaty, establishing the African Economic Community (AEC) and its resolve to support the work of the Continental Free Trade Area-Negotiating Forum (CFTA-NF) towards concluding the negotiations by 2017;
Fast track the implementation of the Duty Free Tariff Preference scheme offered by India since this would play a significant role in increasing trade between Africa and India;
Work towards creating conducive environment for trade facilitation in accordance with the WTO Bali Trade Facilitation Agreement;
Support establishment of Small and Medium Enterprises (SMEs) and Medium and Small Industries (MSIs) in order to promote employment creation and income generation for people of both sides;
Promote Public Private Partnership (PPP) by encouraging Indian businesses to set up skills development units in African industrial zones with the aim to train African engineers, technicians, managers and workers as well as other experts in areas such as food security and solar energy;
Pursue joint cooperation in the agricultural and food security fields and support the implementation of the Comprehensive Africa Agricultural Development Program (CAADP) to increase productivity, conserve land and environment as well as ensure food and nutritional security;
Further increase our cooperation in improving farming techniques through appropriate and affordable technology, appropriate use of irrigation, improving crop varieties and other measures;
Promote investment in agribusinesses and food processing industries to generate employment and greater revenue
Intensify our ongoing cooperation in developing renewable energy generation including solar, wind, hydro, geo-thermal and bio-mass along with building power transmission systems;
v) Blue/Ocean Economy
Promote cooperation in the Blue/Ocean economy, towards the sustainable development of marine resources; place special emphasis on closer collaboration in developing sustainable fisheries, combating illegal and unregulated fishing, managing the marine resources, exploring non-marine resources, conducting hydrography surveys, promoting eco-tourism, developing renewable energy, disaster risk reduction through modern early warning tools, pollution control and other coastal and ocean studies;
Intensify ongoing cooperation in training, capacity building, consultancy and project implementation through concessional credit in infrastructure areas, including water supply management, maritime connectivity, road and railway construction and upgrading; vii) Education and Skills Development
Provide and facilitate the access and enrollment of African students and academicians to India’s premier institutions of higher learning in an effort to boost Africa’s human resource capacity including in areas such as engineering, medical technology and agriculture;
Collaborate in capacity building and the use of remote sensing technologies for natural resource mapping, including agriculture, water, forest cover, mineral and marine resources, disaster management and disaster risk reduction, including early warning of natural disasters;
Foster cooperation among scientific and research centers in Africa and India to make use of ICT and modern technologies and geographic information systems;
Cooperate in making technology and digital networks become effective tools in our fight against poverty, and ensure it benefits the needy, improves delivery of services, catalyzes development and increases citizen participation in governance, as well as promotes financial inclusion and empowerment through access to banks, credit and social insurance against diseases and accidents;
Promote joint coordination and cooperation to improve the future of the youth through programs for capacity building and knowledge exchange among youths on the two sides and strengthen their capacities to meet the challenges of globalization and its repercussions;
Continue to provide the necessary support for the establishment and operationalization of the institutions agreed by the two sides;
Enhance joint cooperation in health and pharmaceutical development as well as telemedicine and traditional medicine, jointly combat diseases and pandemics and increase the efficiency of health institutes through comprehensive training programs and coordination at international level to harness modern scientific technologies for medicine and treatment;
Cooperate in the training of doctors and healthcare personnel including through telemedicine, medical missions, development and utilization of modern technology, enhanced access to generic medicines, promotion of the use of traditional medicines and regulatory procedures as well as combating the challenges posed by pandemics;
Cooperate in ensuring access to affordable medicines and foster innovation to address public health needs of developing countries by making full use of the flexibilities available under the WTO TRIPS Agreement;
ix) Peace and Security
Continue collaboration in the fields of Peace and Security including conflict prevention, resolution, management and peace building through exchange of expertise and training programs; strengthening regional and continental early warning capacities and mechanisms; enhancing the role of women in peace keeping and propagating the culture of peace;
Strengthen our cooperation in enhancing capacity to contribute to peacekeeping and peace-building efforts including support to the African Standby Force (ASF), and through the recent announcement by India to conduct a new training course at the Centre for UN Peacekeeping (CUNPK) in New Delhi; and by other Peacekeeping Training Centers in Africa dedicated for Training of Trainers from upcoming Troop Contributing Countries from Africa. Strengthen our cooperation for greater involvement of the Troop Contributing Countries in decision-making process;
Promote the strengthening of the UN Counter-Terrorism mechanisms; call upon all States to ensure strict compliance with the UN Security Council sanctions regime on terrorism; and call on all countries to ensure that their territories are not used for crossborder terrorist activities. We urge the international community to cooperate with urgency to adopt the Comprehensive Convention on International Terrorism in the 70th Session of the UNGA;
Promote peace and support post-conflict states to enhance their development priorities;
Enhance cooperation and coordination between Africa and India to combat terrorism in all its forms and manifestations; confront transnational crime to further support international efforts in this regard;
Increase our cooperation in securing sea lines of communication, preventing transnational crimes of piracy, trafficking of drugs, arms and humans through surveillance;
x) Multilateral Fora
Demand urgent collective action to put in place a more representative global governance architecture, reflective of the contemporary geo-political realities, that will assist in more equitable and just international security and development frameworks;
India notes the common African position and the aspirations of the African countries to get their rightful place in an expanded UN Security Council as new permanent members with full rights as contained in the Ezulwini Consensus and Sirte Declaration. Africa takes note of India’s position and its aspirations to become a permanent member with full rights in an expanded UN Security Council. We emphasize the need for an early implementation of the UNGA Decision 69/560, so as to make a decisive push for achieving concrete outcomes on the United Nations’ Security Council reform agenda;
Recall and reaffirm the principles behind the fight against colonialism, xenophobia, Apartheid and violation of human rights in which India and Africa fought together;
Support a negotiated solution recognizing the legitimate rights of the Palestinian people, resulting in a sovereign, independent State of Palestine living side by side at peace with Israel as endorsed in the Quartet Roadmap, relevant UN and AU Resolutions and in line with the provisions of international law;
Intensify coordination of positions at the United Nations, G-77 and other global political, economic and commercial fora in order to jointly tackle issues of common interest in accordance with the spirit of the Africa-India Partnership;
Urge the developed countries to undertake ambitious mitigation commitments to reduce their greenhouse gas emissions and honor their commitments under the United Nations Framework Convention on Climate Change (UNFCCC) to provide financial resources as well as transfer of technology and capacity building support to developing countries to enable them to effectively address the impacts of climate change;
Enhance cooperation and coordination in finalizing an ambitious and comprehensive climate change agreement during the forthcoming COP 21 negotiations which will be held in Paris, France;
Welcome that COP 22 on Climate Change will be held on African soil in Marrakesh, Morocco in 2016 and agree to work together to ensure that the concerns of developing countries are met;
Commit to promote good governance to bring development to our peoples. We will further our cooperation in this regard through efficient use of information and communication technologies. We also look forward to deepening our cooperation and sharing of experiences in establishing fair and transparent electoral processes;
Promote and enhance cultural interaction amongst peoples and media exchange programmes as well as interaction between intellectuals in Africa and India, and encourage private sector endeavours in cultural investments to better inform the peoples of two sides about the realities of their societies;
32. Monitoring Mechanism
We, the Heads of State and Government and Heads of Delegation from African countries and the Prime Minister of the Republic of India agree to adopt the 2015 India-Africa Framework for Strategic Cooperation and agree on the establishment of a regular formal monitoring mechanism to review the implementation of the 2015 India-Africa Framework for Strategic Cooperation and its Plan of Action within the agreed timeframe;
33. The next India-Africa Forum Summit will be held in the year 2020;
34. We, the Heads of State and Government and Heads of Delegation from African countries thank their Excellencies the President and Prime Minister of the Republic of India, the Government and people of India for hosting this Summit and the warm reception and hospitality extended to us. The Prime Minister of India, on behalf of the Government and people of India takes this opportunity to thank the Heads of State and Government and Heads of Delegation from Africa and the African Union for their participation in the Third India Africa Forum Summit and for their most useful suggestions to further intensify the India-Africa partnership.
Done in New Delhi on 29 October 2015
WTO MC10: Developing countries propose reforms on agriculture, cotton, safeguards
Three separate developing country groups have tabled negotiating proposals on agriculture at the WTO, only weeks ahead of the global trade body’s tenth ministerial conference in Nairobi, Kenya. However, trade sources cautioned that the dwindling package of issues on the negotiating table could limit the chances of progress on the broader agenda that developing countries have highlighted for action.
The three proposals, copies of which have been seen by Bridges, all raise negotiating issues that are central to the Doha Round of talks that was first launched in the Qatari capital in 2001. However, the US and increasingly also other developed countries have had less and less appetite for the wide-ranging agenda in recent months, particularly after an earlier effort to reach a Doha Round work programme by July failed to bear fruit.
One group of mainly agricultural-importing developing countries, the G-33, has tabled a proposal calling for an “accessible and effective” special safeguard mechanism that developing countries would be able to use to raise tariffs temporarily in the event of a sudden surge in import volumes or a price depression.
Another group, the C-4 group of West African cotton-producing countries, has tabled a draft decision on cotton.
Finally, the African Group at the WTO has tabled a set of “elements on agriculture” which they argue must be delivered in the Doha talks.
The proposals come only weeks after WTO Director-General Roberto Azevedo recommended that the trade body’s members explore options for a slimmed-down package for the Nairobi ministerial, which he said could focus on agricultural export competition, least developed country (LDC) and development issues, and improved transparency.
Trade sources told Bridges that the chair of the WTO agriculture negotiations, New Zealand Ambassador Vangelis Vitalis, had convened a meeting this coming Friday to discuss the new proposals and update members on his latest consultations with negotiators.
Special safeguard mechanism
The G-33 proposal identifies four new areas of flexibility which the group indicates could help foster agreement on an earlier proposal they circulated in July 2014.
The proposal, which was submitted by group coordinator Indonesia, says that negotiators could explore whether a time-bound limit on the number of products eligible for enhanced protection under the mechanism might help promote consensus.
It also suggests that the WTO could establish a consultation mechanism to exempt from safeguard duties those exports coming from least developed countries and those classified as small, vulnerable economies.
The G-33 also proposes that limits could be set on the number of consecutive times a country could apply safeguard duties, or the length of time for which the mechanism would be applied.
Finally, the group suggests revisiting the existing special agricultural safeguard agreed at the end of the Uruguay Round as a possible model for resolving other outstanding issues, such as whether safeguards would be allowed to breach pre-Doha ceilings on tariffs that had previously been agreed at the WTO.
“It’s a gesture from the group,” one G-33 official familiar with the proposal told Bridges. “We’re willing to discuss some of the concerns raised by the members.”
However, another delegate suggested that the political dynamics of the talks would make it hard for the group to win acceptance of their proposal.
“It’s crystal clear that market access will not be part and parcel of the deal,” the source said.
Cotton: African countries seek reforms
The C-4 group of African countries tabled a wide-ranging draft decision on cotton for Nairobi, which includes proposed action on the product in the area of market access, domestic support, export competition, and development assistance. The C-4 includes Benin, Burkina Faso, Chad, and Mali.
If the decision were to be adopted, developed countries would have to cut their trade-distorting “amber box” payments in half by 1 January 2016, with three-quarters of the amount cut a year later, before eliminating these subsidies completely at the start of 2018.
Production-limiting “blue box” payments would also be reduced according to the proposal, which would cap this type of support at one-third of the limit that would otherwise have been applicable for product-specific amber box payments.
Developing countries would be allowed to make gentler cuts, in five successive tranches of 20 percent to be made between 2017 and 2021.
The proposal would also require developed country members to provide duty-free, quota-free market access to LDC cotton exports from the beginning of 2016 onwards. Developing countries “in a position to do so” would undertake the same commitment, but would not undertake a binding commitment to increase market access.
If adopted, the proposal would require major trading powers such as the US to make immediate changes in its existing legislation – which some trade sources warned would make the proposal hard for the US to accept in its current form.
“It’s a red flag to the Americans,” the source told Bridges, who also cautioned that the limited concessions being sought from large developing countries would also make the proposal unpalatable to Washington.
In recent months, Washington has consistently argued that Beijing in particular would need to make reductions in its own trade-distorting domestic support payments as part of any eventual Doha deal.
African Group: a “fair and equitable outcome”
The African Group proposal argues that a “fair and equitable outcome” is needed across all three pillars of the agriculture negotiations: market access, domestic support, and export competition.
It argues that a monetary limit on developed countries’ overall trade-distorting support (or OTDS) is needed, as set out in the most recent draft Doha negotiating text tabled in 2008. Earlier this year, a Norwegian non-paper suggested that new domestic support disciplines could be adopted without including a ceiling on OTDS.
The 2008 draft should also be the model for cuts to trade-distorting “amber box” payments, the proposal says, as well as for the percentage of such support that would be allowed under the WTO’s “de minimis” provision.
However, the group also argues that stricter rules should be established on payments that are currently allowed as “decoupled income support payments” in the WTO’s green box. Currently, these payments are allowed without any limits, on the basis that they cause no more than minimal trade distortion.
On export competition, the proposal calls for export subsidies to be eliminated and for export credit and food aid to be subject to the disciplines set out in the 2008 draft Doha text. Trade sources told Bridges that the US is anxious to secure greater flexibility for these types of support than is currently provided in the draft.
The proposal also says that new public stockholding programmes should benefit from a “peace clause” agreed at the trade body’s last ministerial conference, which was held in Bali, Indonesia, in 2013. The deal – which allowed developing countries more flexibility to purchase food at administered prices under existing farm subsidy rules – only applied to existing programmes.
Glass half full or half empty?
While Ambassador Vitalis was reported to have invited members to submit comments and suggestions on agricultural export competition that could help him with the drafting process, some trade sources told Bridges that they were disappointed that negotiators were not working towards progress on a more wide-reaching agenda for the Nairobi ministerial.
“Our preference would’ve been for a comprehensive package,” said one.
Another said negotiators were still grappling with the crucial question of what happens after the ministerial in December. The source said that the WTO Director-General may need to help draft language on the controversial question.
“For the US, the single undertaking is an absolute no-go,” said one, who added that Washington was reluctant to continue negotiations under the existing Doha framework. The US has recently indicated, however, that it is open to discussing those Doha issues, as well as new ones, outside of this framework.
Another said that the recent conclusion of the Trans-Pacific Partnership (TPP) between 12 major trading powers – including the US – was likely to change the dynamics in Geneva.
One developing country delegate told Bridges that they were disappointed with the direction the talks had taken, and tended towards pessimism about the likely outcome from Nairobi. “For LDCs, the glass is half full,” he said. “For us, it’s half empty.”