1. 1 TRADE POLICY MAKING PROCESS IN MALAWI Presentation by Mr. H.J.K. Mandindi Director of Trade, Ministry of Industry and Trade

2. 2 Contents Introduction –Malawi Trade Policy –The Integrated Trade and Industry Policy –Trade Policy Instruments –Strategies –Bilateral, Regional and Multilateral Trade Agreements Process of Trade Policy Making Mainstreaming Trade Policy into national development strategies Conclusion and Recommendations

3. 3 Introduction The formulation, implementation and management of Trade Policy in Malawi is the responsibility of the Ministry of Industry and Trade The Ministry undertakes this task by taking into account the interests of the Government, private sector and consumers

4. 4 Malawi Trade Policy The Malawi Trade Policy is directed towards: –Maintenance of an open economy, with relatively low tariffs (average of 13.5%) and general absence of non-tariff barriers; –achievement of economic growth; –improvement of standards of living; –employment creation; and –attainment of strong balance of payment position. The Policy aims at creating an environment that is conducive to efficient and competitive performance of the private sector both domestically and internationally

5. 5 Malawi Trade Policy– cont’d The Trade Policy contributes to the realization of the Malawi Government vision of “transforming the Malawi from a predominantly importing and consuming country to a predominantly producing and exporting country”. The Policy is premised on the need to integrate the country and to participate effectively in the multilateral trading system.

6. 6 The Integrated Trade and Industry Policy The Policy was developed in 1998. It is guided by the Government vision and the Malawi Growth and Development Strategy (MGDS) The policy is WTO compatible (2002 Malawi Trade Policy Review)

7. 7 The Integrated Trade and Industry Policy – cont’d Policy ensures adequate supply of essential goods and services through –efficient distribution and import procurement; –consolidation of existing and diversification of export markets; –generation of foreign exchange; –diversification of export products; –development of a conducive trading environment; and –increasing participation of Malawians in trading activities.

8. 8 Trade Policy Instruments Tariffs, quotas, sanitary and phytosanitary measures, trade remedies(anti-dumping duties, countervailing duties [cvd] and safeguard measures) Government directives Laws i.e. the Control of Goods Act

9. 9 Strategies National Export Strategy - improving the terms of trade and competitiveness of Malawi products. Private Sector Development Strategy - creating an enabling environment for the growth of the private sector.

10. 10 Bilateral, Regional and Multilateral Trade Agreements Malawi – Botswana Customs Agreement - symmetrical (1st July, 1955); Malawi – South Africa Trade Agreement – asymmetrical (1967, 1990); Malawi – Zimbabwe Trade Agreement – symmetrical with lists of sensitive products (1st November 1994); Malawi – Mozambique Trade Agreement – symmetrical with lists of sensitive products (28th December, 2005); and Malawi – People’s Republic of China Agreement on Trade, Investment and Technical Cooperation – asymmetrical (25th March, 2008).

11. 11 Bilateral, Regional and Multilateral Trade Agreements – cont’d Protocol on Trade of the Southern African Development Community (SADC) {17 August 199}; SADC FTA {17 August 2008} Common Market for Eastern and Southern Africa (COMESA) {8 December1994}; COMESA FTA (31 October, 2000) Marrakech Agreement establishing the WTO Africa, Caribbean and Pacific (ACP) - European Commission (EC) Partnership Agreement – currently negotiating for an Economic Partnership Agreement (EPA) with the EC.

12. 12 Bilateral, Regional and Multilateral Trade Agreements – cont’d Beneficiary of the African, Growth and Opportunity Act (AGOA) of the United States of America, Generalized Systems of Preferences (GSPs), EC Everything But Arms (EBA) Initiative, Canada, Japan and India initiatives for Least Developed Countries (LDCs).

13. 13 Trade Policy Making Process process is demand driven emanates from Ministry’s mandate to regulate and align trade to current Government policies, regional and multilateral trading systems and the interests of private sector Consultations with stakeholders are done through inter-agency meetings convened by the Department of Trade and regular meetings of the National Working Group on Trade Policy (NWGTP)

14. 14 Process of Trade Policy Making- cont’d The recommendations from inter-agency meetings are submitted to the Minister of Industry and Trade, through the Director of Trade and Principal Secretary, for consideration and decisions Recommendations on trade policy matters that impact on other Government policies are processed through Cabinet by the Minister of Industry and Trade After Cabinet approves the said recommendations policies are made Policies requiring enactment of laws are processed further through Parliament Implementation, monitoring and review of Trade Policies is done by the Department of Trade in the Ministry of Industry and Trade

15. 15 Mainstreaming Trade Policy into national development strategies The Ministry of Industry and Trade has the responsibility of mainstreaming trade policy into national development strategies to ensure effective implementation of the policies Main instruments that are used for mainstreaming trade include: the formulation of the MGDS, Public, Private – sector Dialogue (PPD) and sectoral consultations

16. 16 Conclusion The trade policy-making process is highly consultative and takes into account the interests of Government, private sector and consumers Mainstreaming of trade policies into national development strategies is crucial for effective implementation of the policies

17. 17 Recommendations Consultative fora such as the NWGTP and PPD to be strengthened to ensure that the interests of stakeholders ( government, private sector, consumers, etc) in trade policy formulation and implementation are taken into account Institutional capacities of stakeholders, including non-state actors (i.e. civil society) in formulation of trade policies be enhanced

18. 18 THANK YOU