News
tralac’s Daily News selection: 7 August 2015
The selection: Friday, 7 August
On Monday: the Northern Corridor Transit Transport Coordination Authority Policy Organs will meet in Kinshasa.
This Rapid Evidence Assessment addresses two questions, to which it finds the literature offers partial answers (that can be supplemented by flanking analyses). What has been the impact of Free Trade Agreements between developed and developing countries on economic development in developing countries? What does this evidence tell us about how developing countries might best benefit from new FTAs (such as Economic Partnership Agreements), and how can they avoid harm? [The authors: Christopher Stevens, Muhammad Irfan, Isabella Massa, Jane Kennan] [Download]
How can social network analysis help tackle West Africa’s challenges? (SWAC-OECD)
Why is SNA relevant for West Africa and the Sahel? The challenges these countries share are of a regional, national and local nature, often transcending national boundaries. Actors interact both across countries and within regions in the same country, whether on issues of food security, physical security, trade or migration. These regional and national relationships are therefore ripe for SNA modelling. SNA’s graphical and spatial dimension can bring clarity to complex relationships and interactions between actors in West Africa. An example of social network analysis: this figure maps the business relations between traders located in Niger, Benin and Nigeria.
The Sahel and West Africa Club (SWAC) is an international platform for policy dialogue and analysis devoted to regional issues in West Africa. Its mission is to enhance the effectiveness of regional policies and partner support.
New Tribunal on SADC summit agenda: Chair (The Herald)
SADC will discuss the resuscitation of its tribunal court at the forthcoming 35th Heads of State and Government Summit to be convened in a week’s time in Botswana, the regional body’s chairman President Mugabe has said. Unlike its disbanded, donor-driven and controversial predecessor, President Mugabe said the reconstituted Tribunal would be reviewed to ensure that its objectives are agreeable to all member States. It is expected that the new Tribunal’s jurisdiction will be confined only to advisory interpretation of the SADC Treaty and any other protocols that may be negotiated among member States.
SADC poised to harmonise regional livestock legislation (AU-IBAR)
Member States of SADC agreed to harmonise veterinary legislations, which spur a collective actions on the prevention and control of trans-boundary animal diseases. In a regional seminar, held in Maseru, Lesotho, from 6th to 10th July 2015, Member States reached consensus to harmonise a veterinary legislation in animal disease control with a focus on PPR. The regional seminar was organized by AU-IBAR/VET-GOV Programme and OIE to create the platform where SADC Member States can convene and deliberate on regional livestock issues and challenges that require regional remedies. The seminary drew over 35 participants from 13 states.
The pesticide dilemma (New Vision)
As such, the Southern African Pesticide Regulators Forum (SAPReF) met in Harare from 27-30 July to come up with a strategic action plan that seeks to reduce health and environmental risks associated with the use, trade and disposal of pesticides. Speaking during the official opening of the strategic workshop, the Permanent Secretary in the host country's Ministry of Agriculture, Mechanisation and Irrigation Development, Ringson Chitsiko, said developing countries were facing growing domestic and global concerns over pesticide use and associated risks. Chitsiko added that central to environmental and health hazards created by the expanding use of pesticides in developing countries, is the weakness of national regulatory agencies.
Tanzania: Govt advised to ban banana imports from Mozambique (IPPMedia)
The government has been advised to ban transportation, importation and distribution of banana plants in the country from Mozambique. This follows the outbreak of a new killer disease known as Fusarium Wilt Race-4 in Mozambique which, once infests the plants, it sends to the entire banana farm to the graveyard. The advice was given by Assistant Director, Plant Health Service (PHS) in the Ministry of Agriculture, Food Security and Cooperatives, Cornelius Mkondo at the Nane Nane exhibitions here.
SADC partners USAID to promote safer food trade (Mmegi)
Speaking at the formal handover of the programme draft to the SADC Secretariat, the United States of America ambassador to Botswana, Earl Miller said he believes improving SPS strategies will lead to increased trade flows in Southern Africa. “This will promote economic growth while creating jobs and increasing the standard of living for people across our region, from the smallholder farmers who grow crops for the local market to the agribusiness producing food for export, as well as the truck drivers who ferry the goods to traders across borders and finally, the retailers who deliver the products to consumers,” he said.
South Africa and AGOA: Withdraw South Africa’s trade benefits, says NPPC (PORK Network)
In comments submitted Wednesday night, the National Pork Producers Council asked the Obama administration to withdraw or at least limit preferential trade benefits for South Africa because of that country’s reluctance to provide market access to US pork. “South Africa has shown that it is pleased to take advantage of U.S. preferential trade programs but is unwilling to extend even customary equitable treatment to imports of pork from the United States,” said NPPC in comments to the Office of the US Trade Representative.
Nigeria and AGOA: Nigerian-American chamber urges entrepreneurs to exploit AGOA initiative (BusinessDay)
“South Africa exported $3.6bn worth of goods to America in 2014 while Nigeria exported only $5.6m goods. If Nigeria will benefit from AGOA, then her trade should not be disastrous. We should exploit all the opportunities in AGOA,” Olabintan Famutimi, NACC President said.
Ethiopia: Improving public investment management (World Bank Blogs)
Ethiopia has the third-largest public investment rate in the world and three times the average for Sub Saharan Africa. This effort has contributed to growth that has averaged 10.9 percent since 2004—a figure higher than that of their neighbours or low-income countries on average. Infrastructure investment has also been helpful in expanding access to services and in gaining competitiveness, being a large landlocked country. Some of the credit goes to sound management of key investments, particularly roads, which received on average 18 percent of total public investment over the past decade. [The author: Mario Marcel]
How much investment is Mozambique losing? (SPEED)
SPEED’s experience in working with companies which have signed agreements under the New Alliance framework shows the same problems found by IESE. The New Alliance companies have all made firm commitments to invest and are keen to do so. However most have experienced significant delays or barriers to their investment. We need to take a long, hard look at those investments that have failed, or those that have never happened rather than focusing only on success stories. We must learn lessons from failures. If we do this we will quickly understand that radical reform of the business environment is needed. [The author: Carrie Davies]
Zimbabwe: Funds for major projects unveiled (The Herald)
Mega deals signed by President Mugabe during his State visit to China last year are set for take-off, with the Asian economic giant announcing yesterday that it will immediately bankroll a number of selected infrastructure projects. Identified projects, whose funding is ready, will be implemented this year, with special economic zones being constructed in Harare and Bulawayo, major roads being dualised, national railway links being rehabilitated and water projects being completed.
“We have projects in the infrastructure area to be done and this includes the road system from Beitbridge-Masvingo-Harare-Chirundu as well as rehabilitation of rail links spanning Bulawayo through Gweru and Harare up to Mutare and going as far as Mozambique. The phase will also see works being done on the railway line to Victoria Falls passing through Hwange from Harare where it will link with the Copper Belt and eventually Angola.” Dr Sibanda said the Gweru-Chiculacula railway line up to Maputo will be refurbished, while the Harare-Nyamapanda Highway would also be dualised.
Zambia-DRC seal trade deal (Zambia Daily Mail)
The agreement will address unfair trade practices, measures to curb smuggling and facilitation of exchange of information between border authorities in the two countries. Minister of Commerce, Trade and Industry Margaret Mwanakatwe said under the agreement, the two countries will establish common border infrastructure such as banks and trade centres. Speaking at the signing ceremony in Lusaka yesterday, Mrs Mwanakatwe said the bilateral trade agreement also provides for duty-free importation between the two countries.
Featured newsletters: TradeMark East Africa, CUTS Africa
Modi’s ‘port-led’ export drive leaves India’s hinterland stranded (LiveMint)
It is exporters like Gupta that Modi had in mind when he launched his ‘Make in India’ drive last September, laying out a model of “port-led” development that would support industrial growth and help create manufacturing jobs. Modi’s vision includes creating a tax union to slash costs and transport times, and a network of industrial corridors connecting the interior to ports. But political opposition to both the new tax and a law making it easier to buy land for development mean those may be years away. For now, the inefficiencies are exacerbating the pain of weak global demand and a 15% drop in exports between December and June from a year ago. Exporting a standard container requires seven documents, takes 17 days and costs $1,332 in India, according to the World Bank’s Doing Business 2015 report. India ranked 126th of 189 economies on the ease of trading across borders, well behind Mexico (44th) and China (98th). All of India’s ports together handle less trade than Shanghai alone.
India may lift ceiling on e-commerce exports (LiveMint)
Once reluctant to negotiate the issue at multilateral forums since its domestic e-commerce policy is not clear on the matter, India has started sending signals that it is ready to make e-commerce part of trade agreements. In the inter-session meeting of trade ministers belonging to the 16-member regional comprehensive economic partnership at Kuala Lumpur last month, India agreed to the formation of a working group on e-commerce, after initial strong resistance to the move by Japan. Similarly, reversing its stand against engagement in e-commerce at the BRICS grouping (comprising Brazil, Russia, India, China and South Africa), India agreed to the Framework for BRICS E-commerce Cooperation at a summit in Ufa, Russia, earlier this month.
Poverty reduction strategies in Fund engagement with Low-Income Countries (IMF)
The Executive Board of the IMF, on 22 June 2015, discussed and adopted the proposed reform set out in a Board paper on “Reform of the Fund’s Policy on Poverty Reduction Strategies in Fund Engagement with Low-Income Countries—Proposals.” Executive Board Assessment:
Nigeria’s oil industry in disarray as illicit trade booms (Naija247news)
Conjoining new Suez Canal with China’s Belt and Road initiatives benefits world (Xinhua)
Zuma: Trade between BRICS countries up 70% (SAnews)
Kenya: South Africa fund to invest Sh3.5bn in local property (Business Daily)
Niger, first LDC to ratify the Trade Facilitation Agreement (WTO)
Jordanian agencies push for lifting of ban on hiring Kenyans (Business Daily)
South Sudan's warring sides resume talks under sanctions threat (Reuters)
Kenya-Somalia: Senate team raises alarm over border region ‘invasion’ (Daily Nation)
Australia places trade at the centre of ties with Kenya (Business Daily)
This week in the news
Catch up on tralac’s daily news selections for the past week:
The selection: Thursday, 6 August 2015
The selection: Wednesday, 5 August 2015
The selection: Tuesday, 4 August 2015
The selection: Monday, 3 August 2015
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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)
