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tralac’s Daily News selection: 21 December 2015
The selection: Monday, 21 December
MC10 outcomes: The Nairobi Package
The Nairobi Package contains a series of six Ministerial Decisions on agriculture, cotton and issues related to least-developed countries. These include a commitment to abolish export subsidies for farm exports, which Director-General Roberto Azevêdo hailed as the “most significant outcome on agriculture” in the organization’s 20-year history. The other agricultural decisions cover public stockholding for food security purposes, a special safeguard mechanism for developing countries, and measures related to cotton. Decisions were also made regarding preferential treatment for least developed countries in the area of services and the criteria for determining whether exports from LDCs may benefit from trade preferences. [Download the outcome documentation]
Bridges Daily Update #5: WTO Members clinch agriculture export competition deal, weigh next steps for negotiating future
Enhanced Integrated Framework fund to help poor states misses target by Sh23bn (Daily Nation)
Profiled commentaries on MC10:
From the African press: Amina declares victory but lobbies contest deal (Daily Nation), Doha masks small Kenya wins (The Herald), Developing countries 'bite the bullet' in Nairobi (IDN), Collins Odote: 'Does Africa have any impact in global talks?' (Business Daily), China, India, South Africa still classed as developing nations (The East African), With rebasing, Kenya loses World Trade Organisation funds (The Standard)
From the Indian press: Message from Nairobi (Livemint), India eclipsed at WTO ministerial (Livemint), Government to respond to WTO’s ‘Nairobi package’ in Parliament (The Hindu), WTO steps forward and one step back for global trade regime in the domain of agriculture (The Economic Times), Nothing at Nairobi: WTO ministerial leaves India and developing countries in the lurch (Firstpost)
Profiled African statements to the MC10 plenary (dated 18 December 2015):
South Africa: Africa has defined a developmental trajectory for itself that involves moving away from its current insertion in the global trading system as a producer and exporter of primary commodities and an importer of finished goods. In this regard Africa, has defined a very clear agenda to move up the value chain and industrialise through an ambitious developmental integration programme that combines market integration alongside infrastructure development and cooperation to develop regional industrial value chains. This ambitious work programme is contained in Africa’s Agenda 2063 and can be recognized as Africa’s “mega-regional”, one constructed to meet Africa’s specific challenges and objectives. Any outcome in Nairobi or in future in the WTO therefore must in our view support this vision and certainly, at a minimum not undermine or complicate its realization. African and other Developing Countries must be offered the necessary policy space to pursue their objectives of industrialization and transformation.
Lesotho: The multilateral Trading System is of utmost importance to small countries such as Lesotho. Lesotho joined the WTO in pursuit of a promise that the multilateral trading system will integrate our nascent economy into the system. Twenty years on, we are still chasing the promise. Regrettably, all indications point to disintegration of African LDCs from the system and less so integration into the system. The WTO 2015 Report clearly illustrates this disintegration, with the greatest share of African Countries in international trade dictated by growth in regional trade. Whereas trade growth may be perceived as positive the concern is that there is no commensurate level of growth in the direction of value added trade with global trading partners. This story line is quite simple. It will take reforms of the Uruguay Round outcomes as well as realization of disciplines foreseen by DDA negotiation mandates, to truly integrate LDCs into global trade. It is for this reason that Lesotho firmly believes that commitments made by Members, in as far as the architecture of the DDA is concerned, must be honoured.
Mauritius: As part of the Development Agenda, we are in favour of an LDC package that would help the LDC’s integrate the multilateral trading system. However, such a package must be assessed from the perspective of its impact on other vulnerable developing countries so that appropriate mitigation measures may be agreed upon. Mauritius would also like to see an acceleration of the work program for small economies and for the timely implementation of measures that would support their integration into the global economy. In addition the specific situation of Small Island Developing States needs recognition at the WTO. We also require a dedicated aid for trade envelope to support their development.
Egypt: The track record of the WTO over the past twenty years has been solid, to say the least, across all those functions except one. The negotiating function has obviously not been advancing very well and reached a point today where it became the biggest institutional challenge facing the WTO. Our biggest and most important question today, is how can we make the negotiating arm of the WTO operational once more. Our determination in establishing this system envisioned the WTO as a forum for continuing negotiations aiming at serving the interest of all its Members. Today, unfortunately, the reality is that this function has not performed anywhere close to our aspirations.
Namibia: Namibia still holds the view that development oriented modalities must have substantial outcomes in strengthening and consolidating the special and differential treatment elements in each negotiating area of the Doha Work Programme, including in agriculture, NAMA and services. We hold the view that agriculture accounts for the most trade-distorted elements of the international trading system and it remains the most important component of the DDA Programme. This is where a large part of our development gains will be derived from. Agriculture should also set the level of ambition for NAMA and Services.
Access the full text of the country plenary statements here
The Nairobi Ministerial Conference: documentation
ECOWAS Authority of Heads of State and Government: final communique
The Authority reiterates its resolute commitment to the on-going integration process as a collective response to the region’s development challenges. It undertakes, with an even firmer determination, to sustain its efforts in the political, economic and institutional fields with a view to meeting all the challenges related to the deepening of this process. The Authority urges all Member States to take full ownership and ensure the implementation of all Community acts and protocols with a view to fast-tracking the integration process.
The Authority stresses the need to step up the process for the establishment of the common market. To this end, it agrees on the need to increase the volume of intra-Community trade, make the free movement of persons and goods a reality and pay particular attention to strategic sectors such as agriculture, infrastructure, energy and human capital. In this context, the Authority calls on the Commission to pursue the harmonisation of sectoral policies and take all necessary measures to support the effective implementation of programmes under these different sectors.
West Africa: USAID pledges $241m (Daily Observer)
The change of guard at Nigerian-American Chamber of Commerce (ThisDay)
Mnangagwa chides African countries for blocking PAP protocol (NewsDay)
SADC’s Pan African Parliament caucus vice-chairperson, Auxilia Mnangagwa has accused most African countries of refusing to ratify the revised Protocol of the Consultative Act for fear of losing their territorial integrity. The revised protocol, enacted by Heads of State and government last year, has so far been ratified by two countries – Mali and Mauritania – whereas it can only become operational if at least 27 countries give it the nod. Speaking to NewsDay from Senegal, where she attended the PAP meeting, Mnangagwa said it appeared most member States were afraid of losing their territorial integrity, as the Act seeks to give the Pan African Parliament legislative powers on trade and movement, environment and infrastructure.
Tanzania’s seaports and transport corridors as development opportunity for east and southern Africa (AfDB)
Continued efforts to invest in transport interconnectivity also suggest the need for institutional and regulatory reform, and enhanced infrastructure investment planning. Neither of these is without cost. The first is largely a question of political will, while the second offers policy choices, but requires that external support can be mobilized for substantial financial investments to achieve results. The extent of external financing will in turn depend on its growth prospects, and further enhancements of its national and regional institutions. Other policy objectives are to provide an environment attractive to investors and facilitate regional coordination.
EA Business Council to search for investment in Northern Corridor (The East African)
Linking Indian and Chinese maritime initiatives: towards a symbiotic existence (ORF)
If Africa builds nests, will the birds come?: comparative study on Special Economic Zones in Africa and China (UNDP)
Nepad's infrastructure focus: NEPAD Infrastructure Project Preparation Facility meeting, Donors welcome improved performance of NEPAD-IPPF in project preparation, Islamic Development Bank signs MOU with NEPAD
Zimbabwe: CZI sees capacity utilisation reaching 65% by 2017 (The Standard)
The Confederation of Zimbabwe Industries says capacity utilisation will nearly double to 65% by 2017 on the back of stakeholder partnerships. Capacity utilisation has been on the decline, reaching 34,3% this year from a peak of 57,2% in 2011 and this has been attributed to the declining economy. CZI believes that to reverse the trend, partnerships with its members, value chain stakeholders, development partners, experts, government and policy makers are key to improving capacity utilisation. According to the industry’s State of the Manufacturing Sector magazine released last week, CZI will employ several strategies to achieve this. [Download: CZI's 2015 Manufacturing Sector Survey]
Uganda’s exports drop by 4.6% (Daily Monitor)
BoU says the decline in exports was as a result of a reduction in the prices which declined by 7% as opposed to volume that increased by 2.5% in the same period. “The decline in price index is reflective of the impact of the decline in global commodity prices. Indeed, compared to the quarter ended October 2014, coffee export earnings recorded in the quarter to October 2015, decreased by $2.4m from $87.2m,” says BoU in its highlight of monetary policy report. “However, the total volume of coffee exported during the current quarter increased by 125,083 (60 kg) bags compared to 705,394 (60 kg) bags exported in the same quarter during 2014,” BoU added.
Nigeria’s foreign trade drops by N338bm in third quarter (ThisDay)
India remained the country's major export partner, accounting for N408.2bn or 17.5% of total exports in the period in review. Others are Netherlands, Spain, United Kingdom and Brazil. China was Nigeria's major source of imports which accounted for 459.4bn or 27.2%. Other are United States, Belgium, Netherlands and India.
Extract: The total value of Nigeria’s merchandise trade at the end of Q3, 2015 was ₦4,021.4bn. This was 7.8% less than the value (₦4,359.5bn, revised) recorded in the preceding quarter. This development arose from a decrease of ₦320.6bn or 12.1%, in the value of exports combined with a marginal decline of ₦17.4bn or 1.0%, in the value of imports against the levels recorded in the preceding quarter. [Download the report: National Bureau of Statistics'Latest Releases']
Trade between Canada and Africa to grow by $10bn
Improving short-term macroeconomic data for southern African policymakers (IMF)
Dr Lehohla, Statistician General of Statistics South Africa, highlighted the challenges of measuring rapid changes in the economy and pointed to the importance of improving data sources for the compilation of national accounts statistics. Mr. Bahadoor, Acting Director of Statistics Mauritius, added that users’ demand for these statistics has increased since the 2008 global financial crisis which had illustrated the size of data gaps.
Mozambique: IMF concludes 2015 Article IV Consultation
Balance of payments pressures are increasing and the exchange rate has depreciated substantially. While the overall current account is improving due to a decline in import-intensive megaproject investments (given the end of the gas exploration phase), the non-megaproject current account has continued to worsen, intensifying pressures in the foreign exchange market.
Gender Equality Strategy (World Bank)
Informed by months of consultations in 22 countries, with governments, civil society organizations, the private sector, and others, our new strategy builds on robust evidence that persistent gaps between men and women impose real and significant costs globally that can be addressed. Our new gender strategy builds on four objectives, all of them indispensable to a more equal world: reducing maternal mortality and closing remaining health and education gaps; creating more and better jobs for women and for men; closing the gender gap in ownership and control of key assets such as land, housing, technology and finance; and enhancing women’s ability to make themselves heard and direct the course of their own lives.
China-Kenya conference on agriculture cooperation: update (Daily Nation)
Five Southern Africa countries to plug sugar deficit in Kenya (The East African)
Kenya, EU set to ratify trade partnership by next December (Business Daily)
Zimbabwe: 4 judges express interest in SADC Tribunal (NewsDay)
Cote d’Ivoire Economic Update (World Bank)
French group opens first African mall (IOL)
AfDB posts new Integrated Environmental and Social Impact Assessment guidance materials
US Congressional approval of 2010 Quota and Governance Reforms: Lagarde statement (IMF)
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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)
