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The Multilateral Trading System: Opportunities and Challenges for the East African Community (EAC) Countries Anne Kamau Ministry of Trade Department of.

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Presentation on theme: "The Multilateral Trading System: Opportunities and Challenges for the East African Community (EAC) Countries Anne Kamau Ministry of Trade Department of."— Presentation transcript:

1 The Multilateral Trading System: Opportunities and Challenges for the East African Community (EAC) Countries Anne Kamau Ministry of Trade Department of External Trade, Kenya.

2 I Introduction The Doha Work Programme launched at the Fourth WTO Ministerial Conference is referred to as the Doha Development Agenda DDA. The Doha Work Programme launched at the Fourth WTO Ministerial Conference is referred to as the Doha Development Agenda DDA. Expected to address the development needs and concerns of developing and least developed countries. Expected to address the development needs and concerns of developing and least developed countries. Developing countries still struggling to fully integrate into the Multilateral Trading System. Developing countries still struggling to fully integrate into the Multilateral Trading System. Development mandate yet to be fulfilled. Development mandate yet to be fulfilled. 2/3rds of the WTO membership developing countries. 2/3rds of the WTO membership developing countries.

3 II Opportunities for the EAC countries Development Objectives Development Objectives Conclusion of the DDA: Conclusion of the DDA: Trade & Development objectives achievable. Trade & Development objectives achievable.

4 Agriculture Domestic Support Domestic Support Drastic reductions in domestic support Drastic reductions in domestic support Blue Box: Newcomers Blue Box: Newcomers Green Box: Green Box: Development friendly measures e.g. Policies related to infrastructural services, soil conservation & rural employment services. Development friendly measures e.g. Policies related to infrastructural services, soil conservation & rural employment services. Cotton: Reductions in support for cotton. Cotton: Reductions in support for cotton.

5 Agriculture Cont. Market Access Market Access Substantial increase in market access. Substantial increase in market access. Tariff reductions in major export markets Tariff reductions in major export markets Tariff escalation addressed key sectors e.g. Coffee Tariff escalation addressed key sectors e.g. Coffee Commodities: Commodity dependent producing only agreements arrangements envisaged Articles XXXVIII & XX (h). Commodities: Commodity dependent producing only agreements arrangements envisaged Articles XXXVIII & XX (h). Special Products: Food Security, livelihood security and rural development. Special Products: Food Security, livelihood security and rural development. Special Safeguard Mechanism: Price decline & surges in imports. Special Safeguard Mechanism: Price decline & surges in imports.

6 Agriculture Cont. Export Competition Export Competition Eventual elimination of export subsidies and other forms of export subsidization. Eventual elimination of export subsidies and other forms of export subsidization. Export Credits: Repayment terms NFIDCs & LDCs Days. Export Credits: Repayment terms NFIDCs & LDCs Days. STEs): Agricultural Exporting State Trading Enterprises (STEs): exempted. STEs): Agricultural Exporting State Trading Enterprises (STEs): exempted. Food Aid: Tighter disciplines while taking into account the interests of food aid recipients. Food Aid: Tighter disciplines while taking into account the interests of food aid recipients.

7 Services Enhancement of market opportunities for EAC countries in services Enhancement of market opportunities for EAC countries in services Use of GATS to bind liberalization in key sectors and modes: telecommunication & financial services, movement of natural persons Use of GATS to bind liberalization in key sectors and modes: telecommunication & financial services, movement of natural persons

8 Industrial Tariffs Reduction in High Tariffs and tariff escalation in developed and advanced developing countries. Reduction in High Tariffs and tariff escalation in developed and advanced developing countries. Non- tariff Barriers to be addressed. Non- tariff Barriers to be addressed. Policy space and flexibility to address developmental & industrial needs Policy space and flexibility to address developmental & industrial needs

9 Aid For trade Initiative agreed upon at the 6th WTO Ministerial Conference HK Dec Initiative agreed upon at the 6th WTO Ministerial Conference HK Dec Assist developing countries to build supply capacity & trade related infrastructure to assist in the implementation of WTO Agreements and to expand trade. Assist developing countries to build supply capacity & trade related infrastructure to assist in the implementation of WTO Agreements and to expand trade. EAC countries to participate and contribute to the structure and content of the Aid for trade initiative EAC countries to participate and contribute to the structure and content of the Aid for trade initiative

10 Technical Assistance and Capacity building Provisions in all WTO Agreements. Provisions in all WTO Agreements. WTO Technical and capacity building programmes upon request. WTO Technical and capacity building programmes upon request.

11 Special and Differential treatment for developing countries Provisions in favour of developing countries including EAC in all agreements Provisions in favour of developing countries including EAC in all agreements

12 III Challenges for the EAC countries Dependency of EAC countries on the major players in terms of exports imports security etc. Dependency of EAC countries on the major players in terms of exports imports security etc. Implementation of previous agreements: implementation issues pending decisions Implementation of previous agreements: implementation issues pending decisions Negotiations based on the principle of trade-offs Negotiations based on the principle of trade-offs Trade-offs takes place among developed and advanced developing countries. Trade-offs takes place among developed and advanced developing countries.

13 III Challenges for the EAC countries Cont. Inadequate human, technical and financial resources Inadequate human, technical and financial resources Dispute Settlement Mechanism; Costly process Dispute Settlement Mechanism; Costly process Definition of a developing country in the WTO Definition of a developing country in the WTO Single under taking principle Single under taking principle

14 IV Conclusion The outcome of the DDA MUST incorporate the Development dimension agreed upon at the Doha Ministerial Conference The outcome of the DDA MUST incorporate the Development dimension agreed upon at the Doha Ministerial Conference Special and differential treatment provisions must be strengthened to make them effective and operational. Special and differential treatment provisions must be strengthened to make them effective and operational. EAC countries to strengthen their missions in Geneva particularly in regard to the number of personnel. EAC countries to strengthen their missions in Geneva particularly in regard to the number of personnel. Effective participation in the on-going WTO negotiations Effective participation in the on-going WTO negotiations EAC countries should consider negotiating as a region in the WTO. EAC countries should consider negotiating as a region in the WTO.

15 Thank you address:


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