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Implications of the New Agreement for Africa’s Export Trade

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)





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African Development Bank
(Visit African's Website) 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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