Africa trade experts meet to sharpen negotiation skills

Accra, Oct. 13, GNA- African trade experts and policy makers are meeting in Accra to broaden and sharpen their knowledge in multilateral trade systems that would place them in a better position for future World Trade Organization (WTO) negotiations.

The one-day WTO/ADB (African Development Bank) and Economic Commission for Africa (ECA) course, the second to be organized in Accra, is also aimed at equipping experts to make recommendations to African Trade Ministers to adopt measures that would bring the Doha Development Agenda (DDA) to a successful conclusion by January 2005.

The agenda, launched in 2001, contains enhanced trade related technical assistance and capacity building which would enable African countries to integrate into the multilateral trading systems and the global economies.

Opening the course, Mr Alan Kyeremanten, Ghana's Trade and Industry Minister, underscored the fact that international trade benefits could be achieved only through a balance commitment and obligations that countries undertake in the multilateral trading systems.

He said however, that the current trade systems where trade rules were skewed to the advantage of few powerful countries continued to have disadvantageous consequences for weak countries.

The Minister said the damaging effects of subsidies by developed countries had compounded the problem of market accessibility and stalled African countries' developmental efforts.

"Agricultural subsidies provided by developed countries run roughly at a staggering one billion dollars a day."

Mr Kyeremanten said Africa's dismal performance in world trade stemmed from not only market accessibility problem but also its inability to produce in significant quantities at competitive prices to take advantages of the market opportunities arising out of the multilateral trading systems.

He said any outcome regarding the Doha Development Agenda without substantial agricultural reform would be meaningless to developing countries especially countries from Africa.

Mr Kyeremanten said issues, which African countries seek immediate attention apart from agriculture, included the resolution of all implementation problems facing them, and establishment of compensatory mechanisms to assist African countries to deal effectively with the negative consequences of the erosion of benefits.

He described the collapse of the recent Cancun Ministerial Conference as a set back towards the realization of the objective of the Doha Development Agenda, saying " The failure has stalled the negotiation process and as a result, the issues of immediate concern to Africa had remained un-addressed".

Dr Dickson Yeboah, WTO Head of the Africa Section said despite its cumbersome processes member nations need to recognize that the WTO still represents the best hope for a world in which all countries could participate democratically to formulate rules that cover all of them.

"The success of the Doha development agenda can provide a much needed injection of confidence for the global economy...Completing and modernizing the WTO rules will consolidate the foundation of the organization and adapt it to contemporary economic realities," he said. Dr Yeboah said the WTO is more than a book of rules because it envisages constant efforts by governments to negotiate new and better marketing opportunities for business enterprises.

He said if the Doha Conference should drag on, every country would make alternative arrangements and the world trading system would be organized around economic blocs, which he envisaged to be less favourable to African countries.

"It would also be more dangerous where might is right and where rules are written by the powerful," he said.

Commenting on Africa's low share in international trade, Dr Michael Mahmoud, a representative of the African Development Bank (ADB) said Africa's share continued to decline to a current level of 2.7 per cent. "The loss of market share by Africa for its major commodity exports over the last three decades is estimated to have caused an annual revenue losses of about 11 billion dollars," he said.

On subsidies, Dr Mahmoud said on the average European and Japanese cow on livestock market receives 2.50 and 7.00 dollars a day respectively, as against 33 to 80 cents in countries in the sub-Saharan Africa.

He said while big on rhetoric, "the Doha Agenda has so far been short on results on the ground, as all the deadlines were missed. Now, because of the Cancun, setback it is unlikely that a deal can be reached by 2005".