3.1 Developments in trade negotiations IV: Economic Report on Africa 2007
3.1 Developments in trade negotiations IV: Economic Report on Africa 2007
A consensus has also been reached on application of certain trade facilitation provisions
by developing countries in exchange for systematic provision of technical
assistance to meet them. WTO has always dealt with issues related to trade facilitation
and WTO rules include a variety of provisions that aim to enhance transparency
and set minimum procedural standards. Among them are GATT Articles V, VIII and X, which deal with freedom of transit for goods, fees and formalities
connected with importation and exportation, and publication and administration
of trade regulations. As part of the Doha Work Programme, the General Council
decided by explicit consensus to commence trade facilitation negotiations on the
basis of clearly defined modalities.
The Trade Facilitation Negotiating Group made considerable progress before WTO
negotiations were suspended in July 2006. Several proposals had been tabled. However,
addressing the issues of technical assistance and capacity building (TA/CB) as
well as S&D proved to be a major challenge. It was unanimously acknowledged that
TA/CB for trade facilitation should respond to the specific needs of WTO member
States. However, the specific TA/CB issues to be addressed within the WTO framework
were unclear. In this regard, it was generally agreed that self-assessments on
trade facilitation needs at national level were critically important for African countries
because they could facilitate engagement with the donor community among
other benefits. A number of tools, including those developed by WTO and the
World Customs Organization (WCO) were proposed for conducting such national
assessments. The National Trade Facilitation Committees in some African countries
would provide appropriate forums to work on these assessments.
It also emerged during the negotiations that access to available resources for capacity
building from the donor community remained a challenge to African countries
because existing procedures were complex. To address this problem, they continuously
stressed the need for a simplified template for requesting technical assistance
and capacity building from donors. In terms of the scope of negotiations, they have
reiterated the broad scope of trade facilitation, and argue that, in addition to activities
aimed at improving customs efficiency, considerable efforts should be made in
other areas such as transit transport management. This was especially important for
the continent’s 15 land-locked countries.
Regarding the possible structure for a Trade Facilitation Agreement (TFA), the
notion of a “trade facilitation ladder” has been emerging that would define the levels
of facilitation to which countries would commit themselves. The philosophy behind
this notion has been that all WTO members should be required to sign up to the
lowest level of standards, with those countries that are most able, implementing a
far higher level of facilitation. It was envisaged that the negotiators would define the
number of steps in the ladder and their content. Finally, there was convergence on
the view that there should be an additional facilitative procedure to resolve disputes
arising from trade facilitation commitments, as taking recourse to the Dispute Settlement
Procedures should be the last resort.
On rules for regional integration, a decision of the Negotiating Group on Rules
established a transparency mechanism for regional trade agreements (RTAs). This
decision applies to all RTAs provisionally and will be replaced by a permanent mechanism
upon the completion of the Doha Round. The discussions on establishing criteria for assessing WTO compatibility with RTAs have not, however, progressed significantly.
One of the most noteworthy achievements for Africa at the Round so far has been
the proposition to grant LDCs DFQF, market access to developed countries and to
developing countries in a position to do so.14 This proposition had been championed
by EU. Unfortunately, other developed countries, particularly the USA, insisted on
watering it down to apply DFQF to only 97 per cent of all products, which allowed
for the exclusion of key products such as some textiles and apparel. This decision
could still benefit African LDCs as one of the criticisms of preferential schemes such
as the Everything but Arms (EBA) initiative is that they lack the legal security conferred
by a WTO commitment.
Aid for Trade talks represent significant advance
The recent inclusion of Aid for Trade talks on the agenda of the Round is another
significant advance. Aid for Trade is not part of the mainstream undertaking, so
progress on this issue could be independent from the rest of the Round. The introduction
of Aid for Trade under WTO auspices could allow for more transparency
and coherence on this issue. It is also hoped that this will increase availability of
resources for Aid for Trade programmes, for which there seems to be great scope.
Such programmes could facilitate trade negotiations through the reinforcing of African
negotiating capacities. They also contribute to developing capacity for applying
meaningful S&D treatments in a range of negotiation areas.
Improvements in Africa’s negotiating capacities
African negotiating capacities, which have proved inadequate in past negotiations,
have evolved over time. One of the most significant developments has been
the increased participation of African countries in the actual negotiations. In the
past negotiations, including the 1986 Uruguay Round, African countries played a
peripheral role. In the current Doha Round, African countries are not only engaged
actively in the definition of the mandate for the negotiators, but have been active at
every stage as the negotiations have progressed. This active participation and engagement
have highlighted the priorities and concerns of Africa and its desire to ensure
that multilateralism benefits all, especially through operationalization of S&D treatment
in every aspect.
The visible engagement of African countries in the negotiations has been driven
mainly by more effective organization of their participation. The African Union
Commission (AUC) has led the political efforts and the coordination of the negotiations.
This coordination has been able to maintain a strong solidarity among African countries despite their diversity. The African Group in Geneva is able to participate
in the negotiations from a common framework on all the key issues of interest.
Thus, the current common negotiating framework that they are using to inform
their positions has been developed under AU coordination and was endorsed by the
AU Summit in Banjul, Gambia in July 2006. The AU Summit Decision was based
on the outcome of the Conference of African Trade Ministers held in Nairobi in
April 2006.15.
The coordinated technical support provided to African negotiators has been another
important development. Many institutions have provided inputs to the political
process spearheaded by AU. ECA has been playing a major role through its African
Trade Policy Centre (ATPC) with the support of the Canada Fund for Africa.
Other institutions playing key roles in providing technical support to the political
process include WTO, UNDP, UNCTAD, International Trade Centre (ITC)
and research networks such as African Economic Research Consortium (AERC),
Council for the Development of Social Science Research in Africa (CODESRIA)
and International Lawyers and Economists Against Poverty (ILEAP). Civil society
organizations (CSOs) have also been active in advocating for African priorities in
the trade negotiations. These include non-governmental organizations (NGOs)
operating regionally and internationally. The Third World Network (TWN), South
Centre, and OXFAM, among others, have played a major role in advocating issues
of concern to African countries.
31 Developments in trade negotiations IV Economic Report on Africa 2007 - To learn more about this author, visit United Nations Economic Commission for Africa's Website.
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Talks on trade facilitation progressing significantly
A consensus has also been reached on application of certain trade facilitation provisions
by developing countries in exchange for systematic provision of technical
assistance to meet them. WTO has always dealt with issues related to trade facilitation
and WTO rules include a variety of provisions that aim to enhance transparency
and set minimum procedural standards. Among them are GATT Articles V, VIII and X, which deal with freedom of transit for goods, fees and formalities
connected with importation and exportation, and publication and administration
of trade regulations. As part of the Doha Work Programme, the General Council
decided by explicit consensus to commence trade facilitation negotiations on the
basis of clearly defined modalities.
The Trade Facilitation Negotiating Group made considerable progress before WTO
negotiations were suspended in July 2006. Several proposals had been tabled. However,
addressing the issues of technical assistance and capacity building (TA/CB) as
well as S&D proved to be a major challenge. It was unanimously acknowledged that
TA/CB for trade facilitation should respond to the specific needs of WTO member
States. However, the specific TA/CB issues to be addressed within the WTO framework
were unclear. In this regard, it was generally agreed that self-assessments on
trade facilitation needs at national level were critically important for African countries
because they could facilitate engagement with the donor community among
other benefits. A number of tools, including those developed by WTO and the
World Customs Organization (WCO) were proposed for conducting such national
assessments. The National Trade Facilitation Committees in some African countries
would provide appropriate forums to work on these assessments.
It also emerged during the negotiations that access to available resources for capacity
building from the donor community remained a challenge to African countries
because existing procedures were complex. To address this problem, they continuously
stressed the need for a simplified template for requesting technical assistance
and capacity building from donors. In terms of the scope of negotiations, they have
reiterated the broad scope of trade facilitation, and argue that, in addition to activities
aimed at improving customs efficiency, considerable efforts should be made in
other areas such as transit transport management. This was especially important for
the continent’s 15 land-locked countries.
Regarding the possible structure for a Trade Facilitation Agreement (TFA), the
notion of a “trade facilitation ladder” has been emerging that would define the levels
of facilitation to which countries would commit themselves. The philosophy behind
this notion has been that all WTO members should be required to sign up to the
lowest level of standards, with those countries that are most able, implementing a
far higher level of facilitation. It was envisaged that the negotiators would define the
number of steps in the ladder and their content. Finally, there was convergence on
the view that there should be an additional facilitative procedure to resolve disputes
arising from trade facilitation commitments, as taking recourse to the Dispute Settlement
Procedures should be the last resort.
On rules for regional integration, a decision of the Negotiating Group on Rules
established a transparency mechanism for regional trade agreements (RTAs). This
decision applies to all RTAs provisionally and will be replaced by a permanent mechanism
upon the completion of the Doha Round. The discussions on establishing criteria for assessing WTO compatibility with RTAs have not, however, progressed significantly.
One of the most noteworthy achievements for Africa at the Round so far has been
the proposition to grant LDCs DFQF, market access to developed countries and to
developing countries in a position to do so.14 This proposition had been championed
by EU. Unfortunately, other developed countries, particularly the USA, insisted on
watering it down to apply DFQF to only 97 per cent of all products, which allowed
for the exclusion of key products such as some textiles and apparel. This decision
could still benefit African LDCs as one of the criticisms of preferential schemes such
as the Everything but Arms (EBA) initiative is that they lack the legal security conferred
by a WTO commitment.
Aid for Trade talks represent significant advance
The recent inclusion of Aid for Trade talks on the agenda of the Round is another
significant advance. Aid for Trade is not part of the mainstream undertaking, so
progress on this issue could be independent from the rest of the Round. The introduction
of Aid for Trade under WTO auspices could allow for more transparency
and coherence on this issue. It is also hoped that this will increase availability of
resources for Aid for Trade programmes, for which there seems to be great scope.
Such programmes could facilitate trade negotiations through the reinforcing of African
negotiating capacities. They also contribute to developing capacity for applying
meaningful S&D treatments in a range of negotiation areas.
Improvements in Africa’s negotiating capacities
African negotiating capacities, which have proved inadequate in past negotiations,
have evolved over time. One of the most significant developments has been
the increased participation of African countries in the actual negotiations. In the
past negotiations, including the 1986 Uruguay Round, African countries played a
peripheral role. In the current Doha Round, African countries are not only engaged
actively in the definition of the mandate for the negotiators, but have been active at
every stage as the negotiations have progressed. This active participation and engagement
have highlighted the priorities and concerns of Africa and its desire to ensure
that multilateralism benefits all, especially through operationalization of S&D treatment
in every aspect.
The visible engagement of African countries in the negotiations has been driven
mainly by more effective organization of their participation. The African Union
Commission (AUC) has led the political efforts and the coordination of the negotiations.
This coordination has been able to maintain a strong solidarity among African countries despite their diversity. The African Group in Geneva is able to participate
in the negotiations from a common framework on all the key issues of interest.
Thus, the current common negotiating framework that they are using to inform
their positions has been developed under AU coordination and was endorsed by the
AU Summit in Banjul, Gambia in July 2006. The AU Summit Decision was based
on the outcome of the Conference of African Trade Ministers held in Nairobi in
April 2006.15.
The coordinated technical support provided to African negotiators has been another
important development. Many institutions have provided inputs to the political
process spearheaded by AU. ECA has been playing a major role through its African
Trade Policy Centre (ATPC) with the support of the Canada Fund for Africa.
Other institutions playing key roles in providing technical support to the political
process include WTO, UNDP, UNCTAD, International Trade Centre (ITC)
and research networks such as African Economic Research Consortium (AERC),
Council for the Development of Social Science Research in Africa (CODESRIA)
and International Lawyers and Economists Against Poverty (ILEAP). Civil society
organizations (CSOs) have also been active in advocating for African priorities in
the trade negotiations. These include non-governmental organizations (NGOs)
operating regionally and internationally. The Third World Network (TWN), South
Centre, and OXFAM, among others, have played a major role in advocating issues
of concern to African countries.
31 Developments in trade negotiations IV Economic Report on Africa 2007 - To learn more about this author, visit United Nations Economic Commission for Africa's Website.
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