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The acp-eu-trade.org newsletter -- No. 49/ May 2011
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In this issue:
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I. Trade Negotiations Insights
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II. News: Highlights of the month
II.1 All-ACP
II.2 Caribbean
II.3 West Africa
II.5 EAC
II.4 Eastern and Southern Africa
II.6 Pacific
II.7 Central Africa
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III. Selection from the acp-eu-trade.org Library
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IV. Resources from Recent and on Upcoming Events
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Dear readers,
Below you will find a link to our special September issue of Trade Negotiations, a collection of press articles published during the past month and a selection of recently added documents in the acp-eu-trade.org library. As usual, we also provide some resources on recent and upcoming events relevant to ACP-EU trade relations.
ACP-EU stakeholders are encouraged to participate in the various services provided via this website with the aim to exchange relevant information, build up trade negotiating capacity and facilitate networking activities. We therefore invite our readers to take an active role in www.acp-eu-trade.org by:
• Registering on-line as a trade and development expert to help mobilise the best expertise in ACP-EU trade and development matters and give interested parties easier access to information on relevant internationally recognized experts or consultants;
• Submitting relevant background and policy documents, news and links that will enrich the ACP-EU trade debate;
• Subscribing to this monthly newsletter as well as other partners’ to be kept informed of latest developments in the ACP-EU trade realm;
• Sharing your views on the current ACP-EU Trade debate and providing feedback on the relevance and future focus areas of www.acp-eu-trade.org
We appreciate any feedback on this newsletter and look forward to your reactions. You may send your comments to acpeutrade@ecdpm.org or directly to the editors (md@ecdpm.org, qd@ecdpm.org).
Enjoy your reading!
Editor: md@ecdpm.org, qd@ecdpm.org
I. Trade Negotiations Insights, Vol.10, No.3, May 2011
A joint monthly publication by ECDPM (http://www.acp-eu-trade.org/tni), and ICTSD (www.ictsd.org/tni/index.htm)
Trade Negotiations Insights Vol.10, Issue 3: Special issue - African development: The role of traditional and emerging players reconsidered
* News and publications
* Towards a truly global partnership for development
* Emerging donors in Africa: What strategy for U.S. engagement?
* Emerging economies in Africa and triangular dialogue: from aid to development effectiveness
* Social responsibility of Chinese investment in Africa: What does it mean for EU-China Cooperation on development policy towards Africa?
* The developmental impacts of Chinese zones in Africa: Insights from a case study of the Jin Fei zone in Mauritius
* Is the economic cooperation of emerging countries with Africa a win-win situation?
* Rethinking engagement with Africa: An African perspective
* WTO Roundup
* EPA updates
* ACP EU events
* WTO events
* Resources
* EU slims down number of beneficiaries under new trade scheme
Isabelle Ramdoo, ECDPM, 13 May 2011
On 10 May, the European Commission (EC) put forward its proposal for a new European Union (EU) regulation applying a scheme of generalised tariff preferences (GSP) (…). In this proposal, the EU grants trade benefits through the GSP to developing countries in the form of reduced or zero customs tariffs on imports of goods. The EC proposes that the new system concentrate its import preferences on those developing countries “most in need”. ECDPM is preparing a full analysis of the proposal, but in this blog entry offers initial comments on the proposal.
-> More benefits from preferential trade tariffs for countries most in need: Reform of the EU Generalised System of Preferences, EC press release, 10 May 2011
-> Karel De Gucht European Commissioner for Trade Remarks at the press conference on the review of the Generalised System of Preferences, 10 May 2011
-> New EU trade plan attracts broad internal criticism, Juliane von Reppert-Bismarck, Reuters, 6 May 2011
-> Critics Slam Proposed EU Trade Preference Overhaul, Bridges Weekly, 1 June 2011
* EU has a 'crucial role' in helping poor benefit from raw materials
Martin Banks, theparliement.com, 5 May 2011
A conference in parliament was told that the EU has a "crucial" role to play in helping developing countries benefit from the supply of raw materials. The debate on Wednesday heard that global natural resource extraction is meant to increase by up to five times by 2050. In the period 2000-2007, net imports of raw materials in the EU increased by almost 26 per cent. But Dutch Greens member Judith Sargentini, one of the keynote speakers, said that many developing countries – especially in Africa – have not been able to translate their resource wealth into sustainable and inclusive growth. She said this is often because of governance issues related to regulatory frameworks or taxation. (…) "The EU, through its development policies and in partnership with developing countries, can play a crucial role in creating win-win situations where both developed and developing countries benefit from the sustainable supply of raw materials." (…) Sargentini, who spoke in a session on trade and development, said, "Call us naive but there must be a way for developing countries to benefit from their resources. 'Coherence' is the buzz word. Europe must not copy China's beads for oil behavior, but formulate an offer that can't be refused." One solution, she argued, would be export taxes on raw materials.
* Update on the COMESA-EAC-SADC Tripartite FTA Negotiations
JB Cronje, TRALAC, 25 May 2011
On 10 and 12 June the Ministers and Heads of State and Government of COMESA, EAC and SADC will meet in Johannesburg, South Africa, for the Second Tripartite Council of Ministers and Tripartite Summit respectively. (…)It was agreed at the meeting that the Tripartite integration process will be built on three pillars, namely, market integration (trade liberalisation), infrastructure development and industrial development. The infrastructure and industrial development components will not form part of the market access negotiations and would be addressed under separate tracks. This would in particular focus on removing supply-side constraints and improvement of infrastructure and building of regional value chains. A number of Tripartite Infrastructure Projects (e.g. Transport Corridors, Joint Programmes on Information and Communication Technologies, and Energy and Power Interconnection Projects) are being implemented or developed. On industrial development, the Summit has been requested to give a directive for the development of a work programme on industrial development.
-> Tripartite FTA summit in June, Felix Njini, Southern Times, 3 May 2011
* EU commissioner pessimistic about Doha trade talks
Martins Banks, theparliement.com, 19th May 2011
Addressing the European business summit in Brussels on Thursday, the Belgian official appeared pessimistic about the prospect for a breakthrough in the protracted negotiations. Although he did not name names, he also questioned the commitment of some of the parties involved in the talks to find a successful resolution. He told a side meeting at the summit that the chances of success of an EU proposal to revive the Doha round of world trade talks should be known in the next few days. While De Gucht said that the gaps that needed to be bridged at the World Trade Organisation (WTO) were "still enormous", success was possible with "political will". He said that countries locked in the trade talks do not want the so-called Doha round to fail but may not have the political will to agree on how to cut industrial tariffs.
* Review almost completed on OECS legislation for EPA obligations
Stabroek News, 16 May 2011
The review of the Organisation of Eastern Caribbean States (OECS) trade in services and investment legislation for implementation of EU Economic Partnership Agreement (EPA) obligations is nearing completion, according to release from the CARICOM Secretariat at Turkeyen.
*EPA implementation to feature prominently in COTED
CARICOM Secretariat, Press Release, 09 May 2011
The implementation of the CARIFORUM-EU Economic Partnership Agreement (EPA) and related matters will be the subject of expansive deliberations at the Thirty-Second Meeting of the Council for Trade and Economic Development (COTED), to be held during the week of May 16. In the lead up to the Ministerial Meeting on 19 and 20 May, a meeting of Senior Officials will take place from 16 to 17 May.
-> Caribbean Struggles to Make Complex Trade Deal with EU a Reality, Peter Richards, IPS, 16 May 2011
*CARICOM leaders seek greater focus on prosperity for the people
Caricom press release via DevSur, 24 May 2011
Heads of government of the Caribbean Community (CARICOM) have rededicated themselves to achieving tangible results from the integration process with emphasis on job creation and improving the lives of the people of the Community. The leaders met in retreat on 21-22 May 2011 in Guyana to continue their discussions on prioritising the focus and direction of the Community, which they initiated at their twenty-second inter sessional meeting held in Grenada in February.
-> Girvan “disappointed’ at outcome of CARICOM retreat, Carribean Media Corporation via CARICOM News Network, 24 May 2011
-> Caricom's 'energising' retreat, Rickey Singh, Trinidad Express, 11 May 2011
* NATION EDITORIAL: Jamaica/DR impasse and Cariforum
Barbados National via caricomnewsnetwork, 18 May 2011
The row over a cement trade which developed last week between Jamaica and the Dominican Republic (DR) raises an even more fundamental problem about that Spanish-speaking partner’s relations with the Caribbean Community in general.
* Consolidation of Interim EPA between EU and Ghana
Myjoyonline, 16 May 2011
Stakeholders at a Ghana-European Union (EU) Business forum in Accra last week came to a consensus that there is a need for Ghana to consolidate the Interim Economic Partnership Agreement (IEPA) initialed with the European Union and the need to speed up negotiations to conclude talks on the regional EPA with ECOWAS for the benefit of industries in the West African Regions and to foster regional integration.
* Employers’ associations deliberate on EPA and regional integration
Ghana News Agency, 15 May 2011
The Federation of Employers’ Associations of West Africa has organised a capacity building workshop to inform, sensitise and train members on their Annual Operation Plan. The workshop, held in Accra on Thursday, aimed at arousing participants’ reflection on the prospective problems of the Economic Partnership Agreement (EPA) being implemented by the Federation of Employers’ Associations of West Africa (FWAEA) and the various national employers’ associations for possible solution. Countries participating in the workshop include Ghana, Benin, Burkina Faso, Cote d’Ivoire, The Gambia, Guinea, Guinea-Bissau, Liberia, Nigeria, Niger, Senegal and Togo. The two-day event was also meant to list all the actions carried out by West African Economic and Monetary Union and FWAEA and contributions to help the local associations in the implementation of their promotion and development projects. Mr Diallo Oussein, Executive Secretary of FWAEA, said the workshop would also be used to present a study report on the business opportunities and threats related to the EPA and regional integration. "This would enable participants to play active role in accomplishing the objectives of the associations in order to take up new challenges, which would arise from the private sector," he said.
* Cote d'Ivoire resumes world-leading cocoa exports
Thibauld Malterre, Africa Review, 11 May 2011
World-leading cocoa producer Cote d'Ivoire Tuesday resumed exports, which had been frozen for weeks as part of efforts to put pressure on former president Laurent Gbagbo, now under house arrest. Exports resumed with the departure from the main city Abidjan of a ship that port officials said was loaded with 1,700 tonnes of cocoa beans, an AFP news agency correspondent reported. The ship was headed to the port of San Pedro, 370 kilometres (230 miles) to the west, where it was to pick up another 7,000-8,000 tonnes, port officials said. It would then leave for the United States, they said.
* EAC Secretary General Outlines Priorities
EAC Press release, 11 may 2011
The new Secretary General of the EAC Amb. Dr. Richard Sezibera today identified the realization of a single Customs territory, making the Common Market work, achieving a Monetary Union, infrastructure development and industrialization as the priorities for his term. Addressing his maiden press conference at the EAC Secretariat headquarters in Arusha, Dr. Sezibera told journalists “my priorities have been laid out by the Summit [of EAC Heads of State] both within the Treaty Establishing the East African Community and the Protocols therein. “But within those broad areas and in the context of implementing the Treaty and the attendant Protocols, there are four or five areas that are critical,” the Secretary General asserted. First, he said, would be consolidating the implementation of the Customs Union and in this regard, he affirmed that “the formation of a single Customs territory is a critical priority going forward”. The 9th Extraordinary Summit at its meeting in Dar es Salaam in April this year tasked the Council of Ministers to undertake studies on how the region can attain a single Customs territory. Dr. Sezibera also reiterated the need to tackle non tariff barriers, especially those that are procedural in nature. He identified the implementation of the Common Market Protocol as another priority area, lauding Partner States for the commitments they have made and stating that the EAC would, during his tenure, work to ensure that provisions of the Protocol are fully implemented. The Secretary General went on to note that delivering on the third pillar of the EAC integration process – the Monetary Union – was also high on the priority list.
-> EAC non-tariff curbs decried, Samuel Kamndaya, The Citizen via Tralac, 30 May 2011
* EAC needs harmonised Intellectual property laws
Sudi Wandabusi, The Standard, 18 May 2011
The coming into force of the East African Customs Union and East African Common Market Protocols was touted to usher in a new era in the regional economy. Excitement was palpable across the five member States as entrepreneurs rushed to lay down ambitious expansion plans to cash in on the expanded market. But as it is turning out, the excitement was short lived. The much celebrated dawn still appears hazy as entrepreneurs come to terms with the fact that a lot still needs to be done in the harmonisation of the national laws of the member States before the fruits of the Common Market can be reaped, laws that will create a level playing field across the region. Among the challenges entrepreneurs are facing, is the issue of intellectual property. The latest findings of the Business Software Alliance (BSA) 2010 Global Software Piracy Study indicate that Eastern and Southern Africa (ESA)’s software piracy stands at almost double the global piracy of computer software – standing at an alarming 83 percent last year. Dale Waterman, chair of BSA Middle East and Africa Committee, and also the Microsoft’s Corporate attorney for Anti-Piracy for the Middle East and Africa region, concedes that little has been done to reduce the software piracy rate in East and Southern Africa.
* ACP Concern Not Fully Addressed, Says President
Times of Zambia via allafrica.com, 12 May 2011
PRESIDENT Rupiah Banda has said African Caribbean Pacific (ACP) concerns on economic partnership agreements (EPAs) have not been fully addressed despite advanced negotiations with the European Union (EU).
* EU trade with PNG in trouble
Post Courrier, 24 May 2011
Parliament on Friday failed to urgently ratify PNG’s tariff-free access to the highly competitive European Union (EU) commodity market. And failure to do so within the next 10 days may directly put into jeopardy PNG’s preferential status for its highly valued and sought-after tuna, cocoa, coffee and rubber exports. The balance of trade with the EU has always been in favour of PNG and currently stands at EU$448 million (K1.3 billion) annually. Parliament’s blunder was caused by its continuous daily lack of quorum for approval of this urgent treaty which was introduced by Foreign Minister, Don Polye. It was to have been Parliament’s major business of the day following the urgent moving of a motion by the Leader of Government Business, Paul Tiensten, for the treaty to take precedence over other matters. However, straight after Polye’s statement seeking endorsement of Parliament for the treaty, the lack of quorum became apparent resulting in the House deferring and taking note of the statement only. Polye later said he was adamant in seeing the ratification of the treaty through within the week.
* Pacific ACP ready to sign comprehensive EPA by December 2011
Makereta Komai, PACnews, 29 May 2011
Pacific ACP countries have again reiterated their commitments to conclude negotiations on the Economic Partnership Agreement (EPA) with the European Union (EU) by the end of the year. However, that deadline can only achieved, if there is flexibility from both sides, said the Pacific’s Lead Spokesperson on EPA negotiations and Tonga’s minister for trade, Lisiate ‘Akolo.
* COMESA-EAC sign implementation agreement framework under the EDF 10
COMESA press release, 6 June 2011
The COMESA Secretary General Sindiso Ngwenya and the newly appointed Secretary General of the East African Community Dr Richard Sezibera, on Saturday 14 May 2011 signed an implementation agreement under the EDF 10. The event took place at highly attended official opening of the Inter Regional Coordination Committee (IRCC) meeting, taking place at COMESA Secretariat in Lusaka, Zambia.
The Implementation Agreement signed between COMESA and EAC defines the legal framework of cooperation between the two parties in the joint implementation of the Regional Integration Support Programme (RISP) continuation, often referred to as RISP2. The programme is financed through a contribution agreement signed between COMESA and the European Union (EU) under the 10th EDF.
Under EDF10, COMESA , EAC, IGAD and IOC have a total envelope of euro 50 million , with 10 million of it earmarked for the North-south corridor. The amount is for the period starting from 1 July 2010 to 30 June 2013.Disbursements will based on approved annual work plans.
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III. Selection from the acp-eu-trade.org Library
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* LDC Needs Assessment under TRIPS: The ICTSD experience (2007-2011)
ICTSD, Information note 19, April 2011
In 2005, the WTO TRIPS Council decided to extend the transition period granted to LDCs to comply with the TRIPS Agreement to 1st July 2013 (taking into account that LDCs were not required to fully protect pharmaceutical products until 2016 as a result of an extension granted to them in 2002). The 2005 decision also called on LDCs to provide the TRIPS Council with their specific technical and financial assistance needs, in order to implement the TRIPS Agreement, preferably by 1 January 2008. However, by January 2007, no LDC had submitted done so. Against this background, ICTSD, in cooperation with Saana Consulting and with the support of the UK Department for International Development (DFID), launched, in 2007, a project to undertake, upon request, needs assessment diagnostic studies in LDCs aimed at identifying their needs for financial and technical co-operation in the context of the implementation of the WTO TRIPS Agreement. Since then, five LDCs - Sierra Leone, Uganda, Rwanda, Bangladesh and Tanzania- have submitted their IP needs assessments to the WTO TRIPS Council.
This Information Note sheds light on the work carried out by ICTSD in this area and points to a number of lessons learned that could be useful for the Aid for Trade Review.
* Meaningful Technology Transfer to the LDCs: A Proposal for a Monitoring Mechanism for TRIPS Article 66.2
Suzie Moon, ICTSD Policy Brief Number 9, April 2011
The question of whether TRIPS can be implemented in a manner conducive to technology transfer is becoming more urgent, as the end of the transition period for LDCs to implement TRIPS is rapidly approaching in 2013- 2016 for pharmaceutical patents. Against this background, this policy brief revisits the question of TRIPS and technology transfer to the LDCs and the implementation of obligations under TRIPS Article 66.2. It updates and expands upon the analysis and recommendations contained in an earlier work by the author for ICTSD in 2008. It also outlines the main elements of a proposed monitoring mechanism to improve the functioning of Article 66.2 so as to induce more relevant, timely and sufficient transfer of technology to the LDCs.
* Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL applying a scheme of generalised tariff preferences
European Commission, May 2011
* COMMISSION STAFF WORKING DOCUMENT Impact assessment Accompanying the document Proposal for a Regulation of the European Parliament and of the Council applying a scheme of generalised tariff preferences
European Commission, May 2011
* Report from the Commission to the European Parliament and the Council GSP statistical report
European Commission, May 2011
* Success and Failure of African Exporters
Olivier Cadot, Martha Denisse Pierola, Leonardo Iacovone , Ferdinand Rauch, World Bank Policy Research Working Paper 5657, May 2011
Using a novel dataset with transactions level exports data from four African countries (Malawi, Mali, Senegal and Tanzania), this paper uncovers evidence of a high degree of experimentation at the extensive margin associated with low survival rates, consistent with high and middle income country evidence. Consequently, the authors focus on the questions of what determines success and survival beyond the first year and find that survival probability rises with the number of firms exporting the
same product to the same destination from the same country, pointing towards the existence of cross-firm synergies. Accordingly the evidence is consistent with the hypothesis that those synergies may be driven by information spillovers. More intuitively and consistently with multi-product firms models, the analysis also finds that firms more diversified in terms of products, but even more in terms of markets, are more likely to be successful and survive beyond the first year.
* Rebalancing, Growth, and Development in a Multipolar Global Economy
Zia Qureshi, Economic Premise 57, May 2011
Reduction of large and persistent external imbalances is currently a key focus of G-20 discussions. The paper argues that in a progressively multipolar world economy, the goals of global rebalancing, growth, and development are increasingly inter-linked. Growth-oriented rebalancing calls for emphasizing structural reforms and leveraging the role of developing countries in supporting strong and balanced global growth.
* Multipolarity: The New Global Economy
World Bank, Global Development Horizons 2011, May 2011
By 2025, six major emerging economies—Brazil, China, India, Indonesia, South Korea, and Russia—will account for more than half of all global growth, and the international monetary system will no longer be dominated by a single currency. As economic power shifts, these successful economies will help drive growth in lower income countries through cross-border commercial and financial transactions. Global Development Horizons 2011—Multipolarity: The New Global Economy projects that today's emerging economies will grow, on average, by 4.7 percent a year between 2011 and 2025, and their share of global GDP will expand from 36 percent to 45 percent. Advanced economies, meanwhile, are forecast to grow by 2.3 percent over the same period, yet will remain prominent in the global economy, with the euro area, Japan, the United Kingdom, and the United States all playing a core role in supporting the global economic engine.
* Brazil's Economic Engagement with Africa,
Mthuli Ncube, Charles Leyeka Lufumpa , Desire Vencatachellum , Africa Economic Brief Volume 2, Issue 5, May 2011
The aim of this brief is to explore both the current nature and possible future orientations of Brazil’s economic, commercial, and financial relationships with the African continent. After this brief introduction, the paper focuses on three ain objectives:
(i) to assess the volume and trend of trade commodities between Brazil and African countries;
(ii) to determine the nature of Brazilian investments in Africa; and
(iii) to scope the benefits of Brazil’s technical cooperation.
In this sense, the paper will unpack the economic potential that African nations can reap from engaging with one of the world’s rapidly emerging powers.
* India’s Economic Engagement with Africa
Habiba Ben Barka, Kupukile Mlambo, Africa Economic Brief Volume 2, Issue 6, May, 2011
This paper briefly reviews trends in India– Africa trade, and examines Africa’s potential for attracting Indian investment.It assesses India’s recent economic and technology boom and relevant lessons that can be learned by Africa’s nascent technological firms and services.
Russia's Economic Engagement in Africa
Mthuli Ncube, Charles Leyeka Lufumpa , Desire Vencatachellum, Africa Economic Brief Volume 2, Issue 7, May 2011
In the aftermath of the collapse of the Soviet Union in 1991, the Russian Federation, an ideological friend and ally of many African countries during the Cold War period, started to disengage from Africa and other developing countries, and to develop closer relations with the Western countries. As Russia’s economic strength started to reinvigorate in the late 1990s, the Russian foreign policy objective of reestablishing its geopolitical stature led to a renewal of its relations with Africa. This was driven not only by political ambitions but also by economic and commercial motivations. The African continent, enriched by vast natural resources and with burgeoning consumer markets, has become a very attractive destination for Russian investment. The post-2000 Russian economic stability, which resulted in strong economic growth (yearly average GDP growth rate of 6.9 percent), increasing demand for Russian exports (mostly oil and other natural resources) and higher foreign exchange reserves (world’s third largest reserve). This presented an opportunity for the Russian government and business elites to expand their influence beyond Russian and CIS borders and to enhance their political and commercial ties with African countries and other emerging markets. This brief will examine Russia’s economic reengagement with African countries by quantifying trade between the two regions, analyzing the investment flows of Russian companies into Africa, and assessing the potentials of Russia’s energy expertise for Africa’s resource-rich countries.
* China's Engagement and Aid Effectiveness in Africa
Jean-Claude Berthélemy, Working Paper No. 129, April 2011
Chinese aid, finance, trade and investment flows to Africa are growing fast. We consider the consequences of these trends using a quantified framework. Very often, adequate data are simply non-available, but we find that existing data provide useful insights on what is ongoing. We first discuss the allocation of Chinese aid, using data on turnover of economic cooperation, and we find it is at least partially comparable to other bilateral aid. We also consider the potential issue created by re-indebtedness of African countries borrowing to China. Second, we show, through studying African import patterns, that the growing importation of Chinese products in Africa can be interpreted as trade creation instead of trade diversion. Hence it has positive rather than negative impact on African economies. Third, we study the influence of Chinese engagement on economic diversification. We show that the usual dutch disease argument is debatable. We find that none of the various dimensions of China engagement has had so far a significant impact, positive or negative, on African economic diversification. For the future, the evolving preferential trade regime offered by China, and its policy of creating special economic zones, could help tip the balance on the positive side.
* Central Africa Regional Integration Strategy Paper 2011-2015
African Development Bank, February 2011
* The Africa Competitiveness Report 2011
World Economic Forum, the World Bank, and the African Development Bank, May 2011
The Africa Competitiveness Report focuses on har- nessing Africa’s underutilized resources: skills, female entrepreneurship, and natural and cultural resources. The Report also contains in-depth assessments of the state of competitiveness, the impact of foreign direct investment on the continent, and the trade performance of the region, including the potential of increased pro- ductivity growth in agriculture and agribusiness. Its final sections provide detailed competitiveness profiles for several African countries.
* Policy Linkages of Investor-State Dispute Settlement
Gus van Harten, Commonwealth Secretariat Trade Hot Topics 82, February 2011
This issue of Commonwealth Trade Hot Topics offers a preliminary insight into what it means for developing country governments to commit to investor-state dispute settlement, and how this commitment entails linkages to their development policy space and regulatory decisions.
* Natural Resource Exploitation: Challenges and Opportunities for LDCs
Paul Collier, Commonwealth Secretariat Trade Hot Topic issue 83, March 2011
This issue of Trade Hot Topics suggests some domestic policies by LDC governments and actions by the international community that can help LDCs maximize the gains from natural resource exploitation.