TRADE RELATED CAPACITY BUILDING

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TRADE RELATED CAPACITY BUILDING

• By
• CHRISTABEL PHIRI
• CIVIL SOCIETY TRADE NETWORK OF ZAMBIA

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Contents

• Definition
• LDCs concerns
• Challenges
• Expectation from Hong Kong
• Conclusion

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DEFINITION

• Trade related capacity building are activities
  that enhance the ability of the recipient country
  and these are classified under two main
  categories
• Trade policy and regulation covers support to
  aid recipients analysis and implementation of
  Multilateral trade agreement,effective
  participation in Multilateral trade
  negotiation,Trade Facilitation harmonization and
  simplification of International trade
  procedures (e.g customs or licensing
  procedures,insurance),Tariff reforms(development
  of simple,transparent and low tariff regimes
  minimizing discrimination between production for
  domestic and export markets.and between purchases
  of domestic and foreign goods,Trade mainstreaming
  in poverty reduction strategy papers/development
  plans(awareness raising,integrating trade in
  development and poverty reduction
  strategies,support to regional trade integration
  etc

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Contd

• Trade developmentcovers the development of
  business and activities that are targeted at
  improving the business climate(promotion of
  information communication technologies,tools and
  mechanisms for improved dialogue and resource
  sharing between public and private sector,
  private sector institution capacity
  building),Access to Trade finance (reformation of
  financial systems,banking and securities markets
  to facilitate trade) and Trade promotion in the
  productive sectors(agriculture,forestry,fishing,in
  dustry,mining, tourism,services),including at the
  institutional and enterprise level

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LDCs CONCERNS

• Tariff peaks remain pronounced in industrial
  countries,the peaks are applied to developing
  country exports and those of potential export
  interest such as processed foods.
• Tariff escalation occurs in products of
  particular interest to developing countries such
  as coffee,cocoa, oilseed,vegetable,fruits and
  nuts and continues to be one of the factors
  impeding export diversification and vertical
  diversification of agricultural exports in
  developing countries.
• The Developed countries are fighting for National
  Treatment for service provision,we are faced with
  very radical request,if we given in we are bound
  to lose autonomy in our nations.

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cont.d LDCs CONCERN

• In the NAMA negotiation,non tariff barriers
  severely restrict LDCs ability to have
  meaningful and predictable market access,the
  advantage offered under preferential schemes is
  compromised by the application of Non Tariff
  Barriers
• The lack of progress on Special and Differential
  Treatment and implementation issues manifests the
  absence of commitment by major trading partners
  to promote development within the Multilateral
  trading regime
• The concern of declining and volatile commodity
  prices and the deterioration of the terms of
  trade as well as an increase in the participation
  of LDCs in the value chain of production

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CHALLENGES

• The constituencies are still ignorant on the
  impact and technicalities of the negotiations,the
  constituencies lack the capacity to interpret the
  demand that these negotiations are enforcing
• The imbalances between developed and LDCs, has
  hindered LDCs from adequately influencing their
  interest.
• To ensure that special and differential treatment
  are operational
• The negotiation structures are very complex,the
  LDCs are not ready for the upcoming pressure
  from the negotiations.
• Developed countries are using financial support
  in the form of technical assistance,development
  aid and debt relief to influence LDCs and
  developing countrys position in the
  negotiations,this is causing disunity amongst
  LDCs and developing countries,each country is
  now pursuing their individual interest.

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Contd

• LDCs face serious challenges in meeting the
  sanitary and Phyto sanitary measures and
  standards imposed by developed and some
  developing country on agricultural imports,they
  are technically complex and costly to be met by
  LDCs exporters

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EXPECTATIONS FROM HONG KONG

• At the fourth LDC Trade MinistersMeeting in
  Livingstone,Zambia the Trade Ministers met with
  the notion of adopting a common position on the
  LDC agenda prior to the 6th WTO Ministerial
  conference
• What Are We Expecting From Hong Kong?
• Binding commitment on duty free and quota free
  market access for all products from LDCs to be
  granted and implemented immediately. This
  commitment must be long term,secure,predictable
  with no restrictive measures introduced.
• An effective integrated framework accompanied
  with increased resource which will initiate
  building supply side capacity,technological and
  physical infrastructure that would support
  diversification of LDCs production and export
  base

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Contd

• Full implementation of the provisions of special
  and Differential Treatment which are precise
  effective and operational and adoption of new
  special and differential measures having taken
  into account problems encountered by LDCs.
• Full market access and national treatment to
  LDCs in the sectors and modes of supply of
  export interest to them,including less skilled
  and non professional services providers under
  mode4 on a temporary and contractual basis.
• Realistic, flexible and simplified rules of
  origin,certification and inspection requirement
  and technical and safety standards.

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Contd

• Trade Facilitation LDCs will only under take
  commitment consistent with their individual
  development,financial and trade needs or their
  administrative and institutional capabilities.
• An end-date for the elimination of all forms of
  export subsidies and reduced forms of trade
  distorting domestic support of developed
  countries
• An established Special Safeguard Mechanism
  enabling LDCs to adopt temporary emergency
  measures in order to address import surges and
  price declines with a notion to safeguard the
  food and livelihood security.

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Contd

• Strengthening the existing preferential scheme
  and the incorporation of provision in the
  modalities to address the erosion of preferences.
  
• Non debt financial resource from international
  organisation and bilateral trade partners for
  adjustment required by LDCs to change in the
  Multilateral trade rules.
• Effective delivery mechanism for Trade capacity
  building addressing supply side constraint faced
  by LDCs in order to take advantage of increased
  Market access.

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CONCLUSION

• We must not deal with the symptoms of the WTO
  but our aim is to change the system, ensuring the
  WTO becomes subordinate to a system of fair
  trade.We must extract the essence out of these
  negotiations,in Agriculture we want removal of
  export subsidies,NAMA we can not accept excess
  production of developed countries which will be
  dumped at lower prices compared to local
  producers,Servicesif we liberalise will our
  people be able to afford education,water
  ,electricity.

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THE END

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