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Implications of the New Agreement for Africa’s Export Trade

 
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Implications of the New Agreement for Africa’s Export Trade
   

Note that contracting parties of GATT 1947 wishing to become original members of the World Trade Organization are required to accept all 12 MTAs on goods incorporated into the Agreement, without exceptions or reservations. They are also required to submit their schedules of tariff concessions and of specific sectoral and sub-sectoral concessions with respect to market access and national treatment for trade in service to the WTO for vetting. In essence, this has led to a substantial increase in the scope of obligations for all GATT contracting parties. The developing countries of Africa have been saddled with a quantum increase in the level of their obligations because of the fact that they have high tariffs on agricultural commodities. They have also been adversely affected since they face a higher level of obligations arising from the new General Agreement on Trade in Services and even more stringent obligations emanating from the agreement on intellectual property rights. In addition, the WTO Agreement has substantially reduced the flexibility hitherto enjoyed by developing countries under the multilateral trading system regarding their trade policies.

African Development Bank Economic Research Working Paper Series Enhancing Africa’s Trade: From Marginalization to an Export-Led Approach to Development Milton A. Iyoha Professor, Department of Economics & Statistics University of Benin, Nigeria Economic Research Working Paper No 77 (August 2005) To learn more about this author, visit African Development Bank's Website.

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African Development Bank
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The African Development Bank is the premier financial development institution of Africa, dedicated to combating poverty and improving the lives of people of the continent and engaged in the task of mobilizing resources towards the economic and social progress of its Regional Member Countries.The Bank’s s mission is to promote economic and social development through loans, equity investments, and technical assistance. The ADB is a multilateral development bank whose shareholders include 53 African countries and 24 non-African countries from the Americas, Asia, and Europe. It was established in 1964, with its headquarters in Abidjan, Côte d’Ivoire, and officially began operations in 1967.
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