News
tralac’s Daily News Selection
tralac’s weekly e-Newsletter is posted. The featured commentary is by Prof Gerhard Erasmus: Is the WTO under threat?
Tomorrow in Johannesburg: How to succeed in doing business with the World Bank on the African continent. According to the Acting Chief Executive Officer of TIA, Ms Lerato Mataboge, the seminar will provide a platform where the World Bank Group will share how it engages and works with the private sector in its partnership with governments, and its private sector financing vehicles. “The seminar will also provide an opportunity for the private sector to learn more about the procurement and financing policies and procedures of the World Bank, the IFC and MIGA. More importantly, the World Bank Group will also share their observations on why South African companies are not securing as many business opportunities with the Bank in developing country markets, compared to their Asian, European, Australian and US counterparts.”
EAC trade facilitation conference: update
The EAC Secretariat organised the roundtable conference to review and fast-track the implementation of the WTO Agreement on Trade Facilitation. The conference brought together Development Partners who will work with the EAC in the implementation of the TFA. Opening the roundtable, the EAC Director General (DG)-Customs and Trade, Mr. Kenneth Bagamuhunda, said that TF was an integral part of the EAC Customs Union Protocol which explicitly provides for reduction in the number and volume of trade documents. “TF also provides for the adoption of common standards of trade documentation and procedures, coordination and facilitation of trade and transport activities. There is also the reviewing of procedures adopted in international trade and transport facilitation with a view to simplifying and adopting them for use in the EAC,” said Bagamuhunda. The DG disclosed that an EAC Trade and Facilitation Sub-Committee has been established to, among other things, supervise the implementation of the WTO TFA at regional and national levels. He said that Regional and National Implementation Plans for the WTO TFA have been finalized and adopted by the Policy organs. “Amendments of regional laws, regulations and procedures; development of project proposals for resource mobilization, and; sensitization of stakeholders is currently underway.”
Harnessing Africa’s external trade partnerships for ‘Agenda 2063’ (Commonwealth Secretariat)
In the context of the African Union’s 50-year vision, Agenda 2063, this paper provides an analytical account and critical assessment of Africa’s strategic trade relations with two of its most important traditional partners, the European Union and the United States; and with two of its most important emerging partners, China and India. Based on the insights these provide, the paper identifies some emerging global issues which could have an impact on Africa’s trading position and its prospects for industrial development. This is followed by indicative policy considerations that could provide strategic guidance to African leaders as well as highlight opportunities and challenges for realising the goals of Agenda 2063. The paper concludes by examining the implications of the changing dynamics of Africa’s key trade relations. [The author: Garth le Pere] [Rwanda: Easing market entry restrictions crucial to increase trade with China, says PSF chief]
Scott Eisner: It makes good business sense for President Trump to focus on Africa
Despite these opportunities, the US hasn’t focused on Africa. With every passing day, we lose market share to competition from China, the EU, and the rest of the BRIC nations. While China has grown to Africa’s largest economic partner, and Economic Partnership Agreements between the EU and African countries are expanding market access for US competitors, the US is sitting on the sidelines. However, for the past decade, the US Chamber has been pushing the pro-Africa investment story to its members. In 2017 alone, we hosted eight African heads of state and countless ministers, and we’ve made 10 trips to the continent to engage directly with the local business community. Furthermore, we continue to expand our American Chamber of Commerce network in Africa with over 20 chapters to date. To enable the US to up its game in Africa, we must do a few things firstas outlined in a paper sent (pdf) by the US Africa Business Center to the Trump administration earlier this year. These are top line issues that will spur manufacturing in the U.S., create new partners across Africa, and help American firms of all sizes compete with the likes of Brazil, Turkey, and China across Africa: [The author is President, US-Africa Business Center]
Barry Gardiner: What is Labour's policy on trade with Africa?
But we need to go beyond just the LDCs. In absolute terms, it is non-LDC African countries such as Ghana, Kenya, Mauritius, South Africa and Nigeria that have more to lose from a change in their terms of trade post-Brexit. For those countries that are covered by the EU’s Generalised System of Preferences, we will seek to develop our own GSP scheme so that they do not face a loss of market access post-Brexit. I would welcome further dialogue with the ODI and other partners on this, as there are differing opinions on how best to do it. Do we just roll over the EU’s GSP scheme, warts and all, given that this will offer the most continuity and predictability? Or should we try to improve on the EU system, in collaboration with those exporters who have first-hand experience of how it works?
Most of the UK’s investment treaties with African countries date back to the 1980s and ‘90s, and are in urgent need of revision. Labour’s manifesto included the commitment to review these historic investment treaties and ensure they are fit for purpose for the 21st century. That means rebalancing the rights and responsibilities of investors to ensure that host communities can genuinely benefit from the opportunities that foreign investment provides. In particular, we have affirmed our opposition to investor-state dispute settlement (ISDS) mechanisms in our investment relations with other countries. [Speech delivered at Labour Party conference fringe event]
Designing a new UK preferences regime post-Brexit: how Africa can benefit (ODI)
This paper aims to facilitate discussions on the design of a new UK Generalised System of Preferences regime that works for Africa, by exploring the importance of the existing preferential regime and the potential impact of its discontinuation on developing countries on the continent, and reviewing the GSP regimes of countries other than the UK. It concludes by presenting a new GSP regime the UK could adopt post-Brexit, to not only ensure that no African country is worse-off as a result, but in many cases to extend market access and improve the benefits for some of the world's poorest economies. [The author: Maximiliano Mendez-Parra]
Kenya pushes new deal for duty-free EU access (Business Daily)
Kenya has launched a fresh push for the conclusion of long-pending trade deal between the European Union and the EAC amid risks of losing preferential access for its products to the main European market. “We have had meetings with the EU today (Wednesday) and another one to be held today (Thursday) we are pushing for our case as a region but it is up to the EU to decide what will happen next in the event the remaining countries refuse to sign the deal,” Industry, Trade and Cooperative Cabinet Secretary Adan Mohamed said in a telephone interview from Brussels. Mr Mohamed expressed optimism that Kenya will continue having its market access to the EU under the preferential terms regardless of the outcome of the meeting.
Report on labour migration statistics in Africa in 2015 (ILO)
The objective of this report (pdf) was to compile data on labour migration in Africa with the view to equip AUC member states with information they need for formulation, implementation and management of their migration policies. The analysis in the report is disaggregated by sex, RECs, and country to present a picture about: (i) Trends in the size and distribution of the total population of Africa between 2008 and 2014; (ii) Trends in the size and distribution of the working age population; (iii) trends in the size and distribution of the labour force; (iv) trends in the size and distribution of international migrants as well as their labour force participation rates and employment-to-population ratios. The disaggregation of the data by RECs is somewhat complicated by the fact that some countries enjoy membership to more than one regional economic community, meaning that the REC totals do not necessarily make up the continental total. Nonetheless, the results showed that:
ECOWAS, ILO collaborate on the development of regional decent work programme
To this end, a three-day technical review and validation Workshop on the 39-page report of the diagnostic study on decent work in the region opened at the ECOWAS Commission on the 26th of September 2017. Apart from validating the findings of the diagnostic study in aid of formulating and implementing a regional decent work programme, the workshop is also expected to identify and agree on three priority areas based on findings of the study on the RDWP and develop programmes and activities on them, develop a draft and action plan for the implementation of the three key priorities identified while capacitating ECOWAS staff to initiate a process on results based management on Decent Work programme within the ECOWAS region.
The cost of high food prices in West Africa (OECD West African Papers series)
West African households were particularly affected by the food price crisis of 2007-08. As these households depend on markets for two-thirds of their food supplies, prices have become a key determinant of access to food. However, food prices are 30-40% higher in sub-Saharan Africa than in the rest of the world at comparable levels of per capita income. These price levels have a negative impact on the purchasing power of households and are a major factor of food and nutrition insecurity. Price monitoring systems need to be updated and strengthened. Increasing productivity, promoting regional trade and supporting food value chain development are three of the policy options available to decision-makers to drive down food prices sustainably.
Africa Grain Trade Summit: preview
Stakeholders in the grain sector will gather in Dar es Salaam (5-7 October) to lay down a 10-year strategy to address regional food challenges and trade barriers in African countries. The summit will seek to drive tangible policy reforms for the grain sector to strengthen intra-regional trade in Africa, with the aim of driving industrialisation and propelling economic expansion on the continent. The seventh Africa Grain Trade Summit, which is organised by the Eastern African Grain Council in partnership with the government of Tanzania and supported by the East Africa Trade and Investment Hub, comes at a time when the region is emerging out of a serious grain shortage.
ITC's Sustainability Map to increase transparency and connectivity in international value chains
The International Trade Centre has unveiled Sustainability Map a new online gateway connecting businesses and producers that will help pave the way towards more sustainable trade. ITC launched the innovative tool during the second day of the Trade for Sustainable Development (T4SD) Forum, held in Geneva, 25-27 September. A freely available online platform, Sustainability Map offers users access to wide-ranging information related to sustainability initiatives and standards, allowing businesses to deploy better sustainability practices in international trade. Moreover, Sustainability Map enables users, regardless of their position in the local, regional or international value chain, to gain a better understanding of the sustainability standards that are relevant to their export markets, and to connect with business partners.
Mobilizing and managing external development finance for inclusive growth: six countries’ experiences and lessons (ACET)
Six countries were selected for in-depth review: Burkina Faso, Ghana, Rwanda, Tanzania, Uganda and Zambia. These countries are drawn from different African regions and have at least 15 years experience with development aid. The study answers a series of questions presented to a variety of stakeholders, including government officials, traditional and emerging development partners, private sector actors and civil society organizations. The study also reviewed six development projects to shed light on why the quality of aid management varies from country to country. The study draws conclusions and makes recommendations to stakeholders. [Related ACET paper: Comparative study on local content and value addition in mineral, oil and gas sectors: trends and responses in selected African countries]
COMESA's draft Statistical strategy 2017 – 2020: update
Afreximbank’s Egyptian exposure reaches $5.2bn
IMF updates: Sudan, Seychelles, Benin
Burkina Faso: AfDB’s Country Strategy Paper 2017-2021 (pdf)
UNCTAD: African tourists bring better jobs for women and youth
Asian Development Bank: Global trade rebound boosts growth in Asia, Pacific
World Bank: Trade creation and trade diversion in deep agreements
