News
tralac’s Daily News selection
The selection: Thursday, 14 January 2016
Two commentaries on US trade policy, by Ambassador Michael Froman:
Since President Obama took office, the United States has brought 20 enforcement actions at the World Trade Organization, winning every one that has been brought to closure. Last year, the United States saw victories in a wide range of trade enforcement cases that benefit American industries, including high-tech steel producers, farmers, rare earth manufacturers, and other exporters, while launching cases and dispute settlement consultations to protect American manufacturers and exporters.
I’d like to focus on what yet another group has said about TPP. This is a group that you might not normally associate with trade policy, but it’s a group whose advice we often turn to when the stakes couldn’t be higher. Our national security and foreign policy experts - U.S. Secretaries of Defense and State, National Security Advisors, Generals, Admirals, and others - are all saying that TPP is a strategic imperative. They recognize that trade agreements, first and foremost, must stand on their economic merits. They appreciate that the foundation of US national security is a strong economy and that by driving growth and keeping America competitive, TPP will strengthen that foundation. But they also appreciate that TPP is strategic in the broader sense of the word. TPP is the economic centre piece of our rebalancing to Asia and a concrete manifestation of America’s ability to show global leadership. Right now, this critical region is in flux.
Released today: 2016 World Development Report - Digital Dividends (World Bank)
Digital technologies can promote inclusion, efficiency, and innovation. More than forty percent of adults in East Africa pay their utility bills using a mobile phone. There are eight million entrepreneurs in China - one-third of them women - who use an e-commerce platform to sell goods nationally and export to 120 countries. India has provided unique digital identification to nearly one billion people in five years, and increased access and reduced corruption in public services. And in public health services, simple SMS messages have proven effective in reminding people living with HIV to take their lifesaving drugs. To deliver fully on the development promise of a new digital age, the World Bank suggests two main actions: closing the digital divide by making the internet universal, affordable, open, and safe; and strengthening regulations that ensure competition among business, adapting workers’ skills to the demands of the new economy, and fostering accountable institutions - measures which the report calls analog complements to digital investments.
Forthcoming event: African Data Consensus and the implementation roadmap, role of NSOs (UNECA)
Expected outcomes: a common understanding (position) on the concept of data revolution and what it means for Africa; a consensus on the role of NSOs in its implementation; an action plan for implementing the Data Revolution in Africa based on the principles set in the African Data Consensus, SHaSA and the African Charter on Statistics and, an opportunity to prepare for the United Nations Statistical Commission in March 2016. [Addis Ababa, 20-22 January]
The ‘International trade and economic globalisation statistics’ session for forthcoming UN Statistical Commission (8-11 March): Report of the Secretary-General on international trade and economic globalization statistics, Report of the Inter Agency Task Force on international trade statistics
From global SDGs to country policymaking (World Bank)
To kick-start needed country-level analysis, the World Bank recently issued the volume 'Trajectories for Sustainable Development Goals: framework and country applications', co-authored by the authors of this blog. This framework, which is simple and transparent, may be used to analyze the likely progress in SDGs and their determinants, and to discuss policy and financing options to accelerate progress. In the volume, selected parts of the framework and indicators are applied to 10 countries – Ethiopia, Jamaica, Kyrgyzstan, Liberia, Nigeria, Pakistan, Peru, Philippines, Senegal and Uganda – a group that is diverse in terms of initial conditions and future prospects.
Kenya: Yuan clearing house to boost Sino-Africa trade (Shanghai Daily)
State-owned National Bank of Kenya said its Chinese yuan clearing house which was launched in Nairobi last year will help to boost Sino-Kenya trade. NBK's Managing Director Munir Ahmed told Xinhua in Nairobi that the clearing house will make it easier for Kenyan businessmen to access the Chinese currency. The Chinese Embassy in Nairobi estimates that there are over 200 companies operating in Kenya, a factor which influenced the Central Bank of Kenya to include the yuan as a reserve currency given the growing trade between Kenya and China.
Related: China's imports from Africa shrank nearly 40% in 2015: it could get really painful for these 10 countries (M&G), China’s imports from Africa plummet in 2015 (The Zimbabwean), China GDP guide: how the data is sliced and what's new this time (Bloomberg)
The road ahead for EAC regional competition regime (CUTS Africa)
The report highlights: the status of the competition related policy environment in the EAC Partner States; the areas, which need close scrutiny by the national competition authorities; the provisions of the EAC competition law and how it can be used to deal with such anti-competitive practices. The report further identifies the challenges facing the implementation of the EAC Competition Policy and Law at both the national and regional-level, respectively, and proposes recommendations that can be deployed to mitigate these challenges in ensuring that we have well-functioning competitive markets in the EAC region.
Great Lakes region: private sector investment conference (SADC)
Following the Peace, Security and Cooperation Framework Agreement, signed by 13 countries of the region, the overall objective of the Great Lakes Private Sector Investment Conference (Kinshasa, 24-25 February) is to mobilize investments for the transformation of the region, catalyze regional projects that significantly increase employment, improve productivity, and expand the connection of the region to value markets, including intra-regional trade, and to promote shared prosperity across countries while yielding significant returns on investments. The specific objectives are to:
Egypt to host African investment forum (GNN Liberia)
Next month (20-21 February) Egypt will host 'Africa 2016', the first international business and investment forum of its kind. This is an Africa to Africa investment forum aimed at strengthening business ties within Africa, both at a business and presidential level. The Forum will be opened by the President of Egypt, H.E. Abdel Fateh El-Sisi, and a number of African Heads of State are also expected at the forum.
Botswana: Annual review of the Pula basket of currencies (Botswana Government)
Following the annual review of the Pula basket in 2015, and in pursuant to Section 21 of the Bank of Botswana Act, His Excellency the President has approved the Honourable Minister of Finance and Development Planning's recommendation to: maintain the Pula basket weights at 50% South African rand and 50% SDR and change the rate of crawl from zero to an upward crawl of 0.38% per annum, effective 1st January, 2016.
Future of SA not all doom and gloom (Business Day)
SA faces many of the same global challenges as other developing markets — including lower commodity prices and the risk of rising interest rates — but has reason to be upbeat, says global intelligence consultancy, the Oxford Business group. In its SA report for 2016, the group says the future for inclusive growth in the continent’s most sophisticated economy is still seen as "encouraging" compared with other Brics nations Brazil, Russia, and China — but excluding India — and big emerging market Turkey. According to the report, SA needs to diversify its exports beyond the European Union and China, especially into the rest of Africa. [Read the Oxford Business Group 'South Africa 2016' report online]
Related: South Africa to expand international market access: minister (Xinhua), State should ‘intervene decisively’ to lift economic growth, Radebe says (Business Day), Daniel Mminele, Deputy Governor of the SA Reserve Bank: speech to the European Economics & Financial Centre
November traffic demand (IATA)
African airlines experienced their fifth consecutive month of positive traffic growth in November, posting a 12.2% rise compared to November 2014. However, the trend for the year-to-date so far remains weak, with growth of just 1.3% reflecting adverse economic developments in parts of the continent, including in Nigeria, which is highly reliant on oil revenues. Over the past few months, exports from Africa have held up better than they did earlier in 2015, and this could be helping boost international air travel on the region’s carriers. Capacity rose 9.8% and load factor rose 1.5 percentage points to 65.1%.
Egypt's Suez Canal saw more ships, less US-dollar revenues in 2015 (Ahram)
Despite seeing an increase in traffic, Egypt’s Suez Canal saw a drop in revenues in 2015, registering $5.17bn compared to $5.46bn in the previous year. Last year, the canal, which links the Mediterranean and the Red Sea, saw the passage of 17,483 ships compared to 17,148 in 2014, the statement added.
More bad news for ocean trade (Business Standard)
The Baltic Dry Index (BDI) slid to a level of 402 on Wednesday, a new low, and this might stop much of trade across the Indian Ocean and Asia-Pacific market, say observers. There could be a strong aversion, for instance, to long-term deals. The BDI is an economic indicator issued daily by the London-based Baltic Exchange.
Swaziland/Mozambique port: update (Club of Mozambique)
The proposed $2.14 billion Swaziland/Mozambique port earmarked to be constructed at Mlawula in north-eastern Swaziland, is in its initial stages of construction, local media report here Wednesday. The project aimed at creating jobs for 10,000 people has started despite the fact that Swaziland has not yet received approval from the Mozambican government for the construction of a 26 kilometre canal that will connect the Mozambican sea to Mlawula (at 15 to 20 hectares of land).
UN forum on ethics for development (UN News Centre)
The universal inclusiveness of the 2030 Agenda for Sustainable Development is an ethical imperative, UN Deputy Secretary-General Jan Eliasson told a forum for UN Member States today on ethics for development. “Fundamental principles that underpin the new goals are interdependence, universality and solidarity. They should be implemented by all segments of all societies, working together. No-one must be left behind. People who are hardest to reach should be given priority,” he said.
Currency manipulation – was the Metical overvalued? (SPEED)
Egypt: Western Union transfers from Egypt to China curbed amid dollar shortage (Reuters)
Nigeria: CBN forex policy responsible for declining production, says manufacturer (ThisDay)
Obinna Chima: 'IMF's prescriptions and Nigeria's challenges' (ThisDay)
Offshore West Africa confirms partnership with UK Trade & Investment (ThisDay)
tralac’s Daily News archive
Catch up on tralac’s daily news selections by following this link ».
SUBSCRIBE
To receive the link to tralac’s Daily News Selection via email, click here to subscribe.
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.
