Role & influence of interest groups in Trade Policy Making

Presentation outline Stakeholders in trade policy making Representation of main stakeholders in formal trade policy making Means of influence Degree of influence Stakeholders not yet represented Conclusion

What is trade? Buying and selling of goods and services Interaction between producers and consumers Trade enablers; transport system, storage facilities, information, regulations, institutions, Therefore trade policy should aim at addressing the realization of trade enablers

Who is stakeholder? Those affected and affecting an event/ occurrence, in this case trade Thus trade stakeholders are broadly producers, consumers, institutions

Key stakeholders in trade policy making MIPA- attract, promote, encourage, support and facilitate local & foreign investment MEPC- export development market, market development, export facilitation, trade information MBS- write standards for locally manufactured goods and administer set standards in commerce & industry

Key stakeholders in trade policy making (cont’d) MIRTDC- provides leadership in research & development DEMATT- provide business and technical advisory and marketing services to small & medium enterprises. In 1995 it began assisting Finance assistance to small scale businesses MNDTPF- organize and coordinate EPA negotiations

Key stakeholders in trade policy making (cont’d) SEDOM- provide financial and technical assistance to MSMEs NASME- advocacy association for MSMEs on trading and general MCCCI- defend and promote the interests of business community, gather market information & technologies, organize annual trade fairs

Key stakeholders in trade policy making (cont’d) Copyright society of Malawi- administers copyright legislation to protect intellectual property rights of creative work NWGTP- formed in 2000 to private-public sector forum on trade negotiations, facilitates consultations and cooperation. Representatives are RBM, Min. of Trade, Agriculture, Justice, Foreign Affairs, UNIMA, MEPC, MIPA, MBS, MCCCI, T&G manu.

Representation in formal trade policy making These include;  Government- Min. of Trade and Industry, Finance, Agriculture, Justice  Corporate sector- MCCCI, legal practitiners  Academia- Economics Department of Chancellor college  Civil society – MEJN, ActionAid

What have been some of the policies? Periodic increase in interest rate and agricultural prices Periodic devaluation of the Malawi Kwacha Liberalization of agricultural marketing services (output in 1987 and input in 1990) Privatization of state owned enterprises Removal of fertilizer subsidy by 1991

What have been some of the policies? Liberalization of some agricultural produce prices in 1988 Floatation in February 1994 Liberalization of entry into manufacturing in 1991 Bilateral trade agreements, RSA, Zim, Moz Multilateral trade agreements, COMESA, SADC, WTO, EU

Means of influencing trade policy Lobbying for  Tax policy that promote trade  Supporting infrastructure, i.e. water, energy, international transport corridors,  Regulation that favours investment  Protection of marginalized and small producers, e.g listing sensitive products in EPAs

Degree of influence More action on international policies like EPAs, WTO Less action on domestic challenges, counterfeit products, anti competitive behaviours Less participation in regional policy making like SADC, COMESA

Degree of influence (cont’d) Hasty preparations for negotiations e.g. EPAs Capacity constraints to fully benefit from trade policy e.g. Lome convention, AGOA etc CSOs ( Oxfam, MEJN, ActionAid) have been influential in the EPA current position for government

Degree of influence (cont’d) NWGTP- privatization CAMA has worked on consumer protection MCCCI has been influential in ensuring; reduced government intervention, tax policy, exchange rate management etc. CISANET on farm subsidy reversion

Why have they been influential? Similar understanding of implications after differences for long time betwn government and CSOs on EPAs MCCCI- represents the corporate sector that is engine for economic growth and therefore its interest is response to government stimulus NWGTP- interests aligned in government development policy

Why have they been influential? CISANET- pushed through opposition parliamentarians who currently are in majority in parliament

Stakeholders not yet represented Domestic trade dominated by informal sector Thus need to include Malawi Union for the Informal Sector (MUFIS), Indigenous Business Association, Parliament, Center for Social Concern, CAMA, Farmers Union, PIAM, CNFA

Conclusion Stakeholders in trade policy are producer oriented Balance producer & consumer interests to stimulate competition for growth; CAMA, CFTC Sector specific associations like in citrus fruits, cotton, dairy, poultry, artifacts need to be strengthened.

Merci beaucoup! Thank You! Milward Tobias The African Institute for Development Research (AIDR) P.O. Box Lilongwe