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tralac’s Daily News selection: 10 June 2015
The selection: Wednesday, 10 June
I hope you can understand Africa’s fundamental commitment to trade multilateralism; for Africa, for us, it is multilateralism first and last. We shall seek to use the Nairobi preparatory process to strengthen and advance multilateralism and strengthen the WTO as the engine of the rules-based multilateral trading system. We want to see the WTO more relevant, stronger and the first point of reference in writing non-discriminatory multilateral trade rules and for trade opening for recovery and growth in the global economy. More specifically, on the outcome document since Bali to now, we have a clear understanding of where we should be headed. We must not seek to do everything. If we try to do everything, we will end up doing nothing. So, the outcome from Nairobi should reflect several core elements namely:
The obscure legal system that lets corporations sue countries (The Guardian)
Other countries have already decided to cut their losses, and tried to get out of these trade treaties. Shortly after settling the lawsuit with foreign mining companies over its new post-apartheid mining rules, South Africa began to terminate many of its own investment agreements.
“What was concerning for us was that you could have an international arbitration – three individuals, making a decision – on what was in effect a legislative programme in South Africa that had been arrived at democratically, and that somehow this arbitration panel could potentially call this into question,” said Xavier Carim, a former deputy director-general in South Africa’s Department of Trade and Industry. “It was very, very clear that these treaties are open to such wide interpretations by panels, or by investors looking to challenge any government measure, with the possibility of a significant payout at the end of the day,” said Carim, who is now South Africa’s representative to the World Trade Organisation in Geneva. “The simple fact is that these treaties give you very little benefit and they just pose risk.”
All set for Free Trade Area launch (The Herald)
The private sector should lead the way in ensuring that the Tripartite Free Trade Area, to be launched here today is successful, [Zimbabwean] Industry and Commerce Minister Mike Bimha has said. Minister Bimha told journalists yesterday that the world over governments did not grow economies, rather, they created a conducive environment and facilitated bilateral agreements with other countries. “We want to see the private sector taking the lead. At the end of the day, it’s in their interests to see that the TFTA is successful as they produce the goods and services that are needed for trade. Government is there to facilitate and come up with a conducive agreement.”
COMESA-SADC-EAC Tripartite Free Trade Area: implications for Zimbabwe (ZEPARU)
While TFTA negotiations are on-going, this study aims to inform the crafting of the country’s negotiating position in the forthcoming COMESA-SADC-EAC TFTA. Zimbabwe’s National Trade Policy aims to create a diversified and competitive industry both regionally and internationally. The purpose of the study is to undertake both quantitative and qualitative analyses to identify trade positions that address the objectives of the National Trade Policy. Further, the study sought to investigate the revenue changes, impact on existing industries, consumer prices (important for poverty), and incentives for new investment. Above all, the study focused on analyzing beyond the market access issues that include non-tariff measures such as trade remedies, SPS measures, rules of origin, technical barriers to trade and trade facilitation. An analysis of capacity needs of both the private sector and government was done in the context of an effective implementation of the TFTA.
Zambia and the TFTA: ‘Address raw material dependency’ (Zambia Daily Mail)
Trade experts have cautioned that Zambia may not get meaningful benefits from a tripartite free trade agreement (TFTA) unless the country addresses challenges of over-dependence on raw material exports. In an interview yesterday in Lusaka, Consumer Unity Trust Society (CUTS) Zambia coordinator Simon Ngona said for Zambia to take advantage of this opportunity, the country needs to produce and export more value-added products.
COMESA to address trade barriers in agro commodities (Zambia Daily Mail)
In a quest to increase intra-regional trade, Common Market for Eastern and Southern Africa, through the Sanitary and Phyto-Sanitary Unit, has embarked on a project to address trade barriers in agricultural commodities. The project will be piloted in Zambia, Egypt, Kenya, Malawi, Sudan, Uganda and Zimbabwe with selected border posts between member states.
Fatima Acyl, Commissioner of Trade and Industry: Gender Is My Agenda Pre-Summit Conference (AU)
As we know, women make up the majority of cross border trades (up to 85%), we must therefore look at ways to ensure that the voices and issues of women traders feature prominently in the CFTA negotiations.
AGOA: US-South Africa trade deal threatens UK poultry exports (Farmers Weekly)
The resumption of trade could have serious implications for the UK poultry sector, which has been building market share in South Africa. This has provided an essential outlet for chicken legs, wings and quarters, which are less in demand in the domestic market. “The South African market has been a growing market for us,” said Maire Burnett from the British Poultry Council. “In 2011 we shipped 20,000t and by 2014 this had grown to 43,000t with a value of £36m.”
Here is how Uganda can benefit from AGOA other trade opportunities (Daily Monitor)
'Servicification' of international trade takes centre stage at UNCTAD expert meeting (UNCTAD)
National economies and international trade are increasingly relying on services - a phenomenon dubbed "servicification" - and debates at the third session of the Multi-year Expert Meeting on Trade, Services and Development, hosted by UNCTAD in May, recognized the importance of this phenomenon. The key role of the services sector in the post-2015 development agenda has also been acknowledged in the proposed sustainable development goals (SDGs) to be adopted in New York in September: many of the goals and targets refer to the crucial role of infrastructure, universal access to basic services, access to financial services, energy, health, education, telecommunications, and transport. Moreover, several cross-cutting goals are predicated on the efficient, environmentally friendly and equitable functioning of services. The services sector development will therefore have a crucial role as means of implementation of SDGs.
Lesotho: Services policy review (UNCTAD)
Why ACP countries matter for the EU post-2015 development agenda (Inter Press Service)
We are witnessing a shift in the original rationale behind the unique relationship between the European Union and the African, Caribbean and Pacific countries of the ACP group, which goes beyond the logic of “unilateral aid transfer”, “donor-recipient approach” and “North-South dialogue”. At ACP level, there is a growing awareness among members that “the Group will have to transform itself if it wants to realise its ambition of becoming a player of global importance, beyond its longstanding partnership with the EU,” said ACP Secretary General, Dr Patrick I. Gomes.
G20 Turkish Presidency keen to benefit the global community (Inter Press Service)
Our work on energy access in Sub Saharan Africa is another important element of our agenda. We are working in partnership with various African institutions. Almost one-fifth of the global population still does not have access to electricity. Nearly 2.6 billion people lack access to modern cooking facilities. In Sub-Saharan Africa the problem is most acute. More than 620 million people, out of the region’s total population of 915 million, have no access to electricity. A high-level conference with the participation of African leaders, investors, private sector and relevant international organisations back to back with the G20 Energy Ministers meeting is also planned. The G20 Energy Ministers Meeting on Oct. 2 will be a first in G20 history. [Ambassador Selim Yenel is Permanent Delegate of Turkey to the EU]
Do capital inflows boost growth in developing countries? evidence from Sub-Saharan Africa (World Bank)
This paper examines whether domestic output growth helps attract capital inflows and, in turn, capital inflows help boost output growth in a set of 38 Sub-Saharan African countries. Using a two-step approach to address reverse causality and omitted variable issues, the paper finds that output growth in countries in Sub-Saharan Africa does not attract capital inflows. However, aid and foreign direct investment inflows enhance growth, while sovereign debt inflows do not. A 1 percent increase in the level of real aid inflows raises growth of real output per capita by 0.022 percentage point. For foreign direct investment inflows, the figure is 0.002 percentage point.
Aid procurement and the development of local industry: a question for Africa (Brookings)
Using data from 1995 to 2013 for World Bank-financed civil works and goods contracts, we consider the theory that international competition in developing-world procurement has become a key instrument through which local industry has advanced in some countries and regions and a main indicator of where it has lagged in others. Notably, we find evidence of a “civil works lag” in sub-Saharan Africa, whereby local competitiveness in the construction industry has developed more slowly there than in other regions.
Promoting ethical business and public-private partnership for development (OECD)
The China-DAC Study Group held a symposium on “Promoting Ethical Business and Public-Private Partnership for Development” in Beijing on 14 November 2014. The symposium attracted over 80 officials, experts, scholars and representatives from business and trade unions from China, Bangladesh, Vietnam and members/observers of the OECD Development Assistance Committee (DAC). Participants discussed and shared experiences on forming strategic alliances between development agencies and the private sector to promote sustainable development in developing countries and on encouraging firms operating abroad to embrace ethical business practices.
Ethiopia presents $11 billion budget (The EastAfrican)
Ethiopia's Ministry of Finance has presented close to $11 billion national budget for the 2015/16 fiscal year. The budget period runs from July 8, 2015 to July 7, 2016. The proposed budget is nearly 20% higher than the previous year's. Out of the total amount, $586 million is planned to be invested in Sustainable Development Goals, which are expected to replace the eight Millennium Development Goals. Some $4.1 billion will go into capital expenditure and around $2.5 billion will be allocated to recurrent expenditure, according to Finance Minister Sufian Ahmed who presented the proposed budget in the Ethiopian parliament Tuesday.
Ethiopia: Forging the link between inclusion and integrity (World Bank Blogs)
How can financial inclusion and financial integrity policies complement each other? That question was addressed in a report recently released looking at the state of Ethiopia’s anti-money laundering/combating the financing of terrorism (AML/CFT) framework. The assessment was conducted by a World Bank Group team of experts and published by the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG). This is the first assessment of a developing country to be published that uses the revised 2012 Financial Action Task Force standards.
Financial inclusion, regulation and stability: Kenyan experience and perspective (UNCTAD)
Tension as DRC is accused of encroaching on Ugandan border (Daily Monitor)
Zambia seeks to reclaim shipping yards in Kenya, Tanzania (Business Daily)
Stop strange goings-on in port deal before scandal blows up in our face (Daily Nation)
Kenya: Higher import costs dent growth in manufacturing (Business Daily)
Tanzania: Govt, Bunge team face off ahead of Budget Day (The Citizen)
Mozambique: Sweden announces 448 million euro aid over the next 5-years (Club of Mozambique)
ECB paper finds that weaker currency does not boost exports (Reuters)
Nigeria’s e-commerce sector to be worth N2.5trn by 2018 (ThisDay)
This post has been sourced on behalf of tralac and disseminated to enhance trade policy knowledge and debate. It is distributed to over 300 recipients across Africa and internationally, serving in the AU, RECS, national government trade departments and research and development agencies. Your feedback is most welcome. Any suggestions that our recipients might have of items for inclusion are most welcome. Richard Humphries (Email: This email address is being protected from spambots. You need JavaScript enabled to view it.; Twitter: @richardhumphri1)
