African statements to UNGA’s debate: updated resource page

Starting today, in Mauritius: 3rd AU Customs Expert Trade Facilitation Forum. The Forum will develop a set of recommendations, observations on how AU Member States can best implement the BIAT and the WTO TFA.

Diarise: 2017 PIDA Week (10-14 December, Swakopmund) on the theme Enhancing trade and economic transformation through regional infrastructure development

Informal AU trade ministerial: update (AU)

Commissioner Muchanga raised the longstanding issue of the AU’s observer status in the WTO and invited Member States reflect on how to resolve the matter in the not-too-distant future. Also, Amb. Muchanga stressed the dire need for Africa to work under the principle of speaking with one voice and acting in unison. “We must emerge from this meeting with a strong reaffirmation of that principle” and “should all commit to speaking with one voice during the Eleventh WTO Ministerial Conference in Argentina,” he emphasized. Commissioner Muchanga also urged AU Ministers of Trade to use their collective strength in numbers at the WTO to become key interlocutors in the upcoming negotiations, while safeguarding their collective interests in the negotiations.

Rob Davies, SA’s Minister of Trade and Industry and chair of the informal meeting, said the WTO Ministerial Conference will be a follow-up to MC10 where Africa was able to get an outcome on export competition / subsidies on agriculture, which have continuously been a detriment to Africa’s development and industrialization. “There are a number of subjects under consideration in the WTO, such as domestic support but with different principles than those agreed under the Doha Development Agenda. We also have new issues such as e-commerce, investment facilitation and transparency, which entail new rules. We need MC11 to reaffirm multilateralism in our rules making,” Minister Davies concluded. The Report of the meeting and its annex (Draft Declaration on WTO issues), will be considered and endorsed by a formal meeting of the AU Ministers of Trade prior to the WTO-MC11.

All-Party Parliamentary Group for Trade Out of Poverty: Can the Commonwealth help developing countries trade out of poverty?

The aim of the inquiry is to gather evidence and set out concrete proposals for consideration / adoption by Commonwealth member states at the Commonwealth Heads of Government Meeting (CHOGM) in London during April 2018. The Inquiry is jointly organised as an initiative between the APPG-TOP and the UK Overseas Development Institute (ODI) and is led by a Committee of eminent persons and experts. The inquiry is co-chaired by Lord Jeremy Purvis and Nigeria’s Minister of Industry, Trade and Investment, Okechukwu Enelamah. Committee Members: Harsha Singh (Brookings India), Patricia Francis (WTO-UNCTAD International Trade Centre), Dirk Willem te Velde (ODI), Catherine Clark (Prudential plc), Steven Pope (DHL Express Europe plc), Trudi Hartzenberg (tralac), Phil Rourke (Centre for Trade Policy & Law, Carleton University), Angela Straughan (consultant), Chi Atanga (Walls of Benin), Lisa McAuley (Export Council of Australia). [Download: Inquiry TOR]

WTO Ministerial Conference: What’s at stake for small, least developed and sub-Saharan African countries? (Commonwealth)

The remaining period before MC11 is crucial for small states, LDCs and SSA countries, which must use this time to review the state of play at the WTO in areas of interest to them, focus on what may be achievable, set their priorities for MC11 and map up their strategic options in the light of overall developments. A pro-small states outcome at MC11 depends on small states’ input into the process towards the Ministerial. Amid global uncertainties and major geopolitical changes, this may be an opportunity for this group of countries to gain recognition. Post MC11, small states, LDCs and SSA countries should take stock of the Doha Round with a view to identifying priority issues that are achievable and that can bring about incremental gains for them. [The authors: Collin Zhuawu, Teddy Y Soobramanien]

Related: @UNCTADKituyi: Signed MOU with Commonwealth SG to deepen our cooperation in trade, blue economy and other areas of complimentary competences and interest

ACP Group of States’ agricultural trade and the WTO negotiations (UNCTAD)

This paper examines the formula proposed in the 2008 draft modalities and compare it with the one proposed by Paraguay in March 2015. The authors attempt to take into account how the world has changed since 2008, by looking at the changes in tariffs facing ACP countries, in agricultural prices and in domestic support. They then examine proposed tariff cuts at a six-digit level. Next, the initial and final tariffs are aggregated to 24 sectors and analysed within a well-known general equilibrium model, the Global Trade Analysis Project (GTAP), to assess the impacts on welfare and trade flows for ACP countries. They conclude with recommendations for ACP countries in the WTO negotiations.

IGAD petrochemicals cluster: Regional survey of potentials, trends and possible operational and policy measures (UNECA)

Assisting African countries to make the most of their commodities, particularly in industrializing to promote growth, job creation and economic transformation is now a strategic priority of the Economic Commission for Africa says Stephen Karingi, Director of the ECA’s Regional Integration and Trade Division. Mr Karingi said the IGAD report being considered at the meeting draws on IGAD member States’ experiences to date with cluster-based economic development. “It is my hope that this meeting will brainstorm on some of the key issues relating to the development of a petrochemical cluster the IGAD region. It will also contribute to the development of analytical framework for designing a competitive industrial economy in the continent.”

South Africa Economic Update: innovation for productivity and inclusiveness (World Bank)

This 10th South Africa Economic Update offers a review of the country’s recent economic and social developments and outlook in the context of global economic prospects. It focuses on the role of innovation in fostering economic growth, job creation and poverty reduction in an environment in which more South Africans are getting poorer. Extracts (pdf):

The availability of firm-level transaction data provides a more detailed view of how product innovation is affecting the export basket. South Africa is one of the first developing countries to conduct such a transaction level analysis. Following the OECD methodology, SA’s export products are classified into four categories: low technology, medium-low technology, medium-high technology, and high technology. Box 2.3 describes these groups of products from a qualitative perspective. Using these definitions, high-tech products accounted for only 7% of the South African export basket in 2014, while “other” and medium technologies comprise the bulk of exports (Table 2.5). This is not surprising given that South Africa is known for its exports of minerals and resource-based products – all of which make up the category of “other”. This indicates that South Africa mostly operates in the medium-tech space, which typically involves complex technologies, with moderate to high levels of R&D investment.

A detailed review of the export trends from 2010 to 2014 shows growth in both low- and high-tech products. There has been a gradual decline in the share of medium-tech and resource-based products, which were arguably South Africa’s most competitive manufacturing industries. Unlike many other developing nations, South Africa is not trapped in low-technology exports, and has the capacity to further upgrade its technologies and compete on quality and price. [Pointers: Figures 2.12 to 2.14: South African exports (2005 vs 2015), High-tech exports in BRICS countries, Technological content of exports per destination (2010-14); Tables 2.5 to 2.6: Export value of different technology levels in South African total exports, South Africa’s top five export products per technology group (2014)]

Related: Marek Hanusch: Will automation kill South African jobs? No, say new studies; Gabriel Goddard: Can South Africa tap into its innovation potential to improve the lives of its citizens?

Namibia not ready for the Africa Free Trade Area (Malaysian Digest)

Namibia is not ready to engage in the proposed African Continent Free Trade Area, said stakeholders present at the national level consultation on the initiative, Namibia Press Agency reported. A one-day consultation was held on Tuesday where various trade unions, faith-based organisations, academia, youth groups, government officials and the private sector deliberated on the CFTA’s developmental impact on Namibian people, in particular, and SADC in general. Sylvester Wullo Bagooro, from Third World Network-Africa, who was a guest speaker at the consultation cautioned the participants on the negative impact of the deadline on which they will have to approve the content of the agreement, which is December this year.

Namibia’s exports remain under pressure (The Namibian)

Latest trade statistics of the second quarter of 2017 (pdf) posted on the Namibia Statistics Agency’s website show that Namibia only experienced an annual increase in two of the top five products, being diamonds and livestock, while copper ore, cathodes and fish all recorded a decline. By destination, only exports to South Africa and Belgium recovered, compared to last year. Ngoni Bopoto, a research analyst at Namibia Equity Brokers, yesterday described the latest figures as “concerning.” The latest trade statistics further show that imports from SACU member states (mainly South Africa) declined marginally 0,3% from the first quarter of 2017 and substantially 15,1%, compared to the second quarter of 2016, which is negative for receipts from the SACU pool.

South Africa continues to be the main source of domestic imports, accounting for 60,4% (N$12,152bn) of total imports. This is followed by Botswana with a 6,9% (N$1,394bn) share of imports. In third place was Bulgaria, which registered an import expenditure of N$879m and accounted for a market share of 4,4%. Zambia and China accounted for 4,3% (N$872m) and 3,7% (N$752m) of total imports, respectively.

Kenya forms team to negotiate international trade deals (Standard)

In a gazette notice yesterday, Industry, Trade and Co-operatives Cabinet Secretary Adan Mohamed said the National Trade Negotiations Council will identify trade policy gaps, give guidance and advise government on key trade issues. According to CS Mohamed, the council, which will be chaired by the Principal Secretary in the Ministry, will also come in handy to advise government on possible options to pursue on addressing emerging trade disputes. Small and medium-sized enterprises will also be helped to tap into international trade. The council will be expected to look at all trade documents, notifications, coming from bodies such as WTO, UNCTAD, Cconomic Partnership Agreements, AGOA, EAC, COMESA, and make decisions. [Details on the NTNC’s composition, powers and functions can be accessed here]

Zimbabwe: Treasury toughens stance on errant transit truckers (Bulawayo24)

In a Statutory Instrument gazetted on Saturday, transit truckers will be fined $2000 for diverting from the route specified by the Commissioner-General of Zimbabwe Revenue Authority. SI 113 of 2017 also aims to bring legislative changes that improve the management of transit cargo in Zimbabwe and to buttress the Electronic Cargo Tracking System introduced in May. The instrument also makes it mandatory to place the ECTS tracking system on all transit vehicles while section (e) of the SI highlights the penalties involved in tampering with the ECTS system.

Summary comments on the WBG’s 2017 Guidance on PPP Contractual Provisions (Heinrich Boell Foundation)

In an effort to promote standardization and expedited negotiation of contracts for Public-Private Partnerships (PPPs), the World Bank Group introduced the 2017 Edition of the Guidance on PPP Contractual Provisions. The Guidance provides both sample language for contracts as well as commentaries to explain legal options. While the Guidance provides improved and more detailed advice as compared with the 2015 version, it continues to emphasize the preferences and requirements of the private sector partner without commensurate consideration of the perspective of the government. In response, the following comments on the Guidance are offered by the Heinrich Boell Foundation to help ensure that PPP contracts achieve an appropriate balance between investor rights, on the one hand, and the rights of the government and people, on the other. In addition to initial overarching observations, comments are offered on each of the sections addressed by the Guidance; namely:

Today’s Quick Links: AGOA: Limitations (1 October 2017, through 30 September 2018) of duty- and quota-free imports of apparel articles assembled in beneficiary Sub-Saharan African countries from regional and third-country fabric IGAD: Conference of Speakers of Parliaments concludes IMF Working Paper: Policy mix and the US trade balance UNCTAD: Making women’s economic empowerment a reality Christine Lagarde: UN High-Level Panel on Women’s Economic Empowerment IMF’s Chart of the Week: Banking on women - a case for more