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AFRICAN PERSPECTIVES ON THE DOHA ROUND

AFRICAN PERSPECTIVES ON THE DOHA ROUND. ERASTUS J. O. MWENCHA, MBS COMESA SECRETARY GENERAL. OUTLINE OF PRESENTATION. GENERAL POSITIONS IMPORTANCE OF AID FOR TRADE MODALITIES FOR AID FOR TRADE FRAMEWORK FOR AID FOR TRADE IN AGRICULTURE AID FOR TRADE AND ADJUSTMENT. GENERAL POSITIONS.

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AFRICAN PERSPECTIVES ON THE DOHA ROUND

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  1. AFRICAN PERSPECTIVES ON THE DOHA ROUND ERASTUS J. O. MWENCHA, MBSCOMESA SECRETARY GENERAL

  2. OUTLINE OF PRESENTATION • GENERAL POSITIONS • IMPORTANCE OF AID FOR TRADE • MODALITIES FOR AID FOR TRADE • FRAMEWORK FOR AID FOR TRADE IN AGRICULTURE • AID FOR TRADE AND ADJUSTMENT

  3. GENERAL POSITIONS • multilateral negotiations preferable for addressing agricultural trade issues, especially domestic support reductions • Important to reduce trade distorting support because of  its impacts on production and international prices - cotton is prime example of this • DFQF: WTO members should agree to 100% coverage - some already do in any case and US should do the same (though there are concerns re. Bangladesh/textiles)

  4. IMPORTANCE OF AID FOR TRADE • Improved market access is not enough • Need to address supply side constraints: for example agriculture, main stay of African economies faces many constraints • Key supply side constraint is INFRASTRUCTURE

  5. HOW BEST TO IMPLEMENT AID FOR TRADE • Aid for Trade needs to focus on both NATIONAL and REGIONAL level. Usually, the regional level is forgotten: WTO task force recommendations did not focus sufficiently on need to examine aid for trade issues from a regional perspective. • Regional level is key because it brings the economies of scale required for success • Important for Aid for Trade to be ADDITIONAL • Needs to be targeted at improving the competitiveness of the agricultural sector: address supply-side constraints being identified under the NEPAD processes.

  6. FRAMEWORK FOR AID FOR TRADE IN AGRICULTURE • IN AGRICULTURE AID FOR TRADE SHOULD SUPPORT CAADP • CAADP shows priorities identified by Africans at regional and national level • CAADP framework avoids the need for donors to undertake various aid for trade initiatives • CAADP is an African initiative to address supply side constraints.  • Pillar 2 of CAADP (markets) brings in the private sector in project implementation.

  7. THE CAADP PROGRAM : THE PILLARS / INVESTMENT AREAS – PRIORITIES FOR AID FOR TRADE 6% ANNUAL SECTOR GROWTH AGRIC RESEARCH AND TECHNOLOGY ADOPTION LAND AND WATER MANAGEMENT TRADE AND MARKETING INFRASTRU. FOOD AND NUTRITION SECURITY

  8. AID FOR TRADE AS A TOOL FOR ADJUSTMENT • Aid for trade should address to negative impacts of liberalization • Some African countries will suffer preference erosion and rise of prices for net food importers due to reduction in subsidies • COMESA FUND could be an instrument

  9. KEY MESSAGES IN DDA COMPLETING DDA: • AGRICULTURE (Need for removal Domestic Support, Export Subsidies) • SUPPLY SIDE CONSTRAINTS: AID FOR TRADE, SUPPORT CAADP • NAMA (though preference erosion is concern) • TRADE IN SERVICES: Need Capacity Building • EROSION OF PREFERENCES (AGOA/EPA: need to focus on investment) • ADJUSTMENT COSTS (COMESA FUND)

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