1. Trade Policy Issues and challenges in SSA Session 4.2: Linkages of SSA Trade policies with national development policies and on going trade negotiations Presented by Margaret K. Chemengich 16 th June 2009

2. Format of presentation Status of trade frameworks National development policies International and global commitments impacting on national development agenda Impact of bilateral, regional and multilateral negotiations on national development agenda.

3. AEC Integration Agenda Regional integration activityTime Frame 1 Establish RECs1999 2 Establish intra-REC integration and inter- REC harmonisation 2007 3 Establish FTA’s and CU in each regional bloc (eg Tripartite EAC-COMESA-SADC) 2017 4 Establish continent wide CU & FTA2019 5 Establish continent wide CM2023 6 Establish continent wide Economic/Monetary Union and Common Currency and Parliament 2028 7End Transition period (AEC)2034

4. Status of Trade Policies and linkages with development agenda RECLevel of Integration Trade PolicyFocus of development agenda EAC (Kenya, Uganda, Tanzania, Rwanda and Burundi) CU CM near conclusion Free trade within region Negotiate externally as a single bloc Investment Areas Trade facilitation Expanding private sector participation Harmonisation at regional level and benchmarking to international standards Growth and poverty reduction, Deepening regional integration, integrating to the global economy Export expansion and development Expanding ICT and service sector

5. Status of Trade Policies and linkages with development agenda RECLevel of Integration Trade PolicyFocus of development agenda COMESA/IOC ( Angola Burundi Comoros Democratic Republic of Congo Djibouti Egypt Eritrea Ethiopia Kenya Madagascar Malawi Mauritius Namibia Rwanda Seychelles Sudan Swaziland Uganda Zambia Zimbabwe Libya ) FTA CU signed Free trade for countries that have acceded Investment Areas Trade facilitation Expanding private sector participation Harmonisation at regional level and benchmarking to international standards Different trade policies for Egypt and Libya belonging to different RECs Growth and poverty reduction Individual country development agenda Trade facilitation Deepening regional integration

6. Status of Trade Policies and linkages with development agenda RECLevel of Integration Trade PolicyFocus of development agenda SADC/SACU (Angola Botswana Lesotho Malawi Mauritius Mozambique Namibia South Africa Swaziland Tanzania Zambia Zimbabwe) CU in SACU Partial FTA in SADC CU by 2010 Preferential trading arrangements in SADC for countries that have signed Growth and poverty reduction Infrastructure dev Trade facilitation Liberalisation of regulatory issues

7. Status of Trade Policies and linkages with development agenda RECLevel of Integration Trade PolicyFocus of development agenda IGADBenchmarked to COMESA Trade policies Benchmarked to COMESA Political and human security Management of migration Economic issues in late 1996

8. Status of Trade Policies and linkages with development agenda RECLevel of Integration Trade PolicyFocus of development agenda CEMAC (Cameroon Central African Republic Chad Congo Equatorial Guinea Gabon) CU MU with common currency Free circulation of goods within union in theory Common trade policies among participating countries Economic and infrastructure development Peace and security Political collaboration at Parliamentary level UEMOA (Benin Burkina Faso Côte d'Ivoire Guinea Bissau Mali Niger Senegal Togo) Partial CU & MU for some of the ECOWAS MU for French speaking countries CET Harmonisation with ECOWAS trade programme Macroeconomic convergence

9. Status of Trade Policies and linkages with development agenda RECLevel of Integration Trade PolicyFocus of development agenda ECOWAS (Benin Burkina Faso Cape Verde Cote d'Ivoire The Gambia Ghana Guinea Guinea-Bissau Liberia Mali Niger Nigeria Senegal Sierra Leone Togo) Political integration through establishment of Parliament, Court and Bank Slow progress towards achieving integration milestones (stalled) Open and competitive trade policy Self sufficiency Development agenda still country focused

10. Linkages of trade policies with bilateral, regional and multilateral negotiations RECs form basis of trade policies RECs strong basis for development agenda LDCs need not take obligations but participate fully in the regional integration agenda RECs at CU collectively negotiate and sign agreements on behalf of participating countries Preferential trade arrangements where in the developed world open their markets for the LDCs (AGOA, EU, Canadian,) Special capacity building programmes (WTO, EC, AGOA…)

11. Linkages of trade policies with bilateral, regional and multilateral negotiations (cont.) Trade and Investment promotion Enhancing analytical capacities, application of existing models Expanded involvement of the private sector and civil society Involvement of the international CSOs Special emphasis on competitiveness, VA, product and market diversification Increasingly the SSA countries moving to open economies Political interest and involvement

12. International and global commitments impacting on national development agenda FrameworkCommitments WTOAgriculture, TRIPS, Services, NAMA ILOLabour standards UN MDGsEducation, health and HIV/ AIDS, gender, poverty reduction, global partnerships, governance. EnvironmentUNFCC, CITES, Kyoto protocol Human rightsUNHCR for treatment of refugees and displaced persons. ICC for Enforcement of rule of law. Monterrey consensus and Paris declarations Access and use of resources.

13. Achievements of current trade policies Market access (global, regional, emerging markets, technology, new products) Product diversification including moving up value chain (trade with China for commodities, VA in agricultural products, other manufactures for the region trade) Wider stakeholder involvement including opportunities for partnerships Improvement in Information access Improvement in policy stability and predictability

14. Challenges of exploiting current trade policies Inadequate supply capacities NTBs Limitations in the analytical and negotiating capacities Divergences/ overlaps and mismatch in trade facilitation regulations, instruments High transport costs Lack of competitiveness Poor access to Information Technology challenges Trade finance opportunities Institutionalization of trade policy and networks

15. IEA Contacts Telephone: 254-20-2721262/2717402 Fax: 254-20-2711631 Email: admin@ieakenya.or.ke Website:www.ieakenya.or.ke