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Building capacity to help Africa trade better

Barriers on agricultural produce killing African economies, says Foreign CS

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Barriers on agricultural produce killing African economies, says Foreign CS

Barriers on agricultural produce killing African economies, says Foreign CS
Photo credit: ILO

A better agreement on agricultural exports will be Kenya’s priority when the world converges in Nairobi for the World Trade Organisation (WTO) summit this December.

In a meeting with Swedish investors on Tuesday, Kenya’s Foreign Affairs Cabinet Secretary Amina Mohamed argued that the world should adopt better agreements on agricultural produce to aid African economies that depend on it.

“African countries’ investments in agriculture have been sinking in a huge black hole, because these legitimate investments cannot compete with distorting subsidies derived from the current Agreement on Agriculture regime,” she said in Stockholm where she is on official visit, according to a statement.

She told the gathering that African countries were unable to lift their economies because of too many impediments placed on agricultural produce from the continent

But she hopes this can be rectified during the next WTO meeting. About 4,000 delegates from 160 countries are expected in Nairobi in December for the 10th WTO meeting (C10).

Formally known as the WTO Ministerial Conference, it is a biennial summit held since 1995 when the World Trade Organisation was established.

WTO is generally a forum where countries negotiate trade agreements and settle disputes resulting from international trade.

It officially has five functions of administering trade agreements, acting as a forum for trade negotiations, monitoring national trade policies, providing technical assistance to developing countries and acting as a link with other international organisations.

Despite its promise to level the trading field, critics have accused the Organisation of passing policies that favour developed countries.

For example, some critics have said rich countries within the WTO maintain high import duties on products thus discouraging exports from poor countries.

Then there are non-tariff barriers such as the insistence on age of goods as well as safety of agricultural products which poor countries are unable to meet.

Besides, there are agreements that limit how far poor countries can use certain technology.

On Tuesday, Ms Mohamed told Swedish investors that the gap can be bridged if they can invest in Kenya and other African countries.

“For us to benefit more from international trade, our exports must increasingly shift from raw materials to processed products through higher value addition,” she said after meeting with Ms Isabela Lövin, the Swedish Minister for International Development Cooperation.

In 2014, Kenya exported Sh2.8 billion worth of goods to Sweden.

These were mainly in the form of horticultural produce. Sweden on the other hand sold to Kenya goods worth Sh6.3 billion in the same year.

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