FROM THE UN REGIONAL COMMISSIONS

By Andrew Allimadi, Communication Officer, ECA
10 March 2004

Economic Commission for Africa's Trade and Regional Integration Division (TRID), in collaboration with the Maghreb Arab Union (UMA) and the Government of the Kingdom of Morocco, organized an Experts Group Meeting in Rabat, Morocco on 1st and 2nd March this year. The meeting was opened by Morocco’s Minister of Commerce, Mustapha Mechahouri, and attended by over 100 trade experts, negotiators, government officials, private sector and civil society representatives.

Hakim Ben Hammouda, TRID director, also attended and presented a paper entitled: "The Status of Multilateral Negotiations: Cancun and its Consequences on Maghreb Countries," and chaired some of the panel discussions.

The meeting discussed the impact and consequences of the failure of the Cancun WTO Ministerial Conference on Maghreb countries; shared country experiences of multilateral trade negotiations; and discussed harmonization of trade policies in order to form a common negotiating position for Maghreb countries. The report and recommendations of the meeting will soon be available on the TRID website. (uneca)

According to The World Trade Review website, an Arab free trade zone ought to be ready by the year 2005. Eight Ministers recently met in Cairo, with fourteen sending ministry representatives—all with one objective: to decide on when to launch the Arab free-trade zone (FTZ). This will be done with a view to the elimination of customs duties among member states. Tariffs have already been cut by 80 percent. There was also talk of something like the WTO’s Dispute Settlement Body (DSB) for that zone.

The World Trade Review reports that with South Korea and Chile having signed a FTA recently a British journalist claims that the agreement will prove to be counter-productive in the long-term. The journalist—Financial Times’ Victor Maller—maintains that such an agreement is “silly”, especially when the WTO exists to promote multilateral trade negotiations. Is this guy being paid to advertise the WTO one wonders…

Japan’s rival—China—is, according to The World Trade Review in the news again for something new: the promulgation of a free border trade zone between the two countries. Whilst the two countries may not appear to be the most obvious partners/allies, it bears reminding that China is keen in fostering good relations with as many of its neighbours as possible. This also means that if the project is to take off, it will “lay a good foundation for China’s enterprises and products marching into the Middle Asian; West Asian and European market.”

No-one would really blame you if you had never heard of it—RegionsWatch only heard of it very recently. To the point: D8 comprises 8—yes, 8!—developing Islamic nations. In this context, they have come together to initiate dialogue on signing a Preferential Trade Agreement (PTA), with a view to signing a free trade area among the 8. Wow. The purpose, so reports the World Trade Review, is to “increase the share of D8 countries in the world economy.” These countries of D8 comprise: Bangladesh; Egypt; Indonesia; Iran; Malaysia; Nigeria; Pakistan; and Turkey. No India?? Watch out G7!

In what may prove to be a landmark agreement between two populous countries of the African continent, Nigeria’s Obasanjo has, according to Nigeria’s This Day, called for increased trade and economic relations between itself and Libya. The article doesn’t elaborate much, but suggests that serious discussions between the two countries are in progress.

According to the Barbados Advocate, Minister of Education, Youth Affairs & Sports Reginald Farley has maintained that the United States has well and truly “hijacked” the “whole free trade deliberation process”. What he meant by this was that the US’s preoccupation with “trade & terrorism” has led to that country predominating the whole issue of free trade.

Farley referred to the Free Trade Area of the Americas (FTAA), but suggested that the issues of trade and security are over-emphasized. Trade is talked about in the context of the FTAA; whereas security is referred to in the context of terrorism. This, Farley maintains, is not good enough for citizens of Barbados—many of whom, he believes, do not even know that the FTAA is part of a bigger process.

Referring, finally to security, Farley suggested that security could best be understood by citizens of Barbados in the context of CARICOM.

According to Reuters, featured in ABC News Online, the Swedish government has sent a representation—comprising prosecutors & policemen—to inspect damaged schools, and interview civilians during a four-day visit “to resource-rich Aceh”. Why Swedes? One may wonder. This is because a number of exiles that were “top leaders” during the time martial law was declared whilst the Indonesian governments discussions with the Free Aceh Movement (GAM) broke down, left to live in exile in Sweden.

As the relationship between two SAARC economies of Pakistan and India arrive at a rapprochement, it is increasingly becoming important for Pakistan to grant India MFN status. Whilst this will not come so easily, it remains an important item on the FTA agenda—as evidenced by the article in DAWN newspaper. The crux of the article, amid several statistics, is about how the two countries should make an attempt to expand bilateral trade.

According to Nigeria’s Vanguard newspaper--featured in Allafrica.com—the relationship between the European Union and the African, Caribbean and Pacific Group of states continues to be a source of serious concern for African observers.

The author maintains that there is deep scepticism of whether the so-called EPAs, or Economic Partnership Agreements, will work for the ACP Group, as the EU likes to promise it will. The author argues, “it is hoped that we begin to critically examine and investigate the underlying tendencies of European Trade policy towards Nigeria and other ACP countries and help formulate political expectations and recommendations for our political leaders.” About time, too.

Nigeria will be one of the countries particularly affected by the ACP Group, especially in light of its role as de facto and de jure hegemon of the ECOWAS group that comprises fifteen countries. This point is important especially because ECOWAS was one of the first regional organisations on the continent to agree to initiate the first stage of the EPAs.

Ideally, the Cotonou agreement (replacing the Lome Conventions) proposes, by 2008, to “replace non-reciprocal preferences with free trade agreements.” These are what EPAs are known to be. Ofcourse, this is the idea, but the reality is proving to be very different—and the cloak-and-dagger tactics of the EU equally affects Nigeria, as a populous country.

The author maintains that Nigeria should refrain from signing an EPA, “but to retain whatever non-reciprocal trade preferences it may be given while reserving the right to restrict access to its local market, especially for certain product lines.”

Solutions to counter the aggressive-offensive strategy of the EU to disrupt the African’s regional integration efforts can come in the form of more facilitation by Nigeria (and by extension, ALL ACP member countries) for experts; and the voices of civil society actors, such as trade unions. The author contends that these actors should “collaborate with the government to identify and propagate the simple key messages that help change the behaviour of citizens in a way that will strengthen the Nigerian economy and the Nigerian position in international trade.”

Finally, aid should be consigned to a debate outside the “workable” solutions, especially because of its varied success. In short, it hasn’t helped much in fostering development for ACP member countries; plus there has been a serious dearth—and reluctance by the EU to pay 0.7 percent of their GDP as development assistance—of funds over the years.

The Australian newspaper The Age reports that “an American farm analysis of [the] free trade agreement” with Australia signed the week of 1 March shows it would benefit farmers in both countries—contrary to the furore that the signing of the FTA had triggered that same week.

According to the Farm bureau, the biggest gains from this FTA will be in the manufacturing and services factor. However, the paper maintains, in order for both sides to maximise their capacity to reap profits, Australia would need to streamline and improve its quarantine system.”

The Ides of March (15 March) was a good day for both the governments of the US and the Dominican Republic, especially because that was the day they both signed a FTA together. Agriculture secretary (US) Ann Veneman congratulated the negotiators for what proved to be a peaceful and uneventful negotiation. Veneman maintained it was a “positive development” for the US’s already strong growing agricultural economy. (US Embassy in Tokyo).

The week saw the two countries, according to the Interfax News Agency, meeting in Budapest for discussions on how to deepen “new forms of cooperation…in conditions of EU’s enlargement…and the context of Ukraines’ European perspectives.”

Despite Argentina’s beleaguered economy, if the news from Interfax news agency is to be believed, it is in deep discussion with Ukraine. There will be bilateral exchanges, including bilateral discussion on how to consolidate ties between the two countries—and let’s face it: trade will also be discussed!

Far be it for RegionsWatch to praise explicitly any regional organisation, so instead, one leaves others to do it—like Philippines Foreign Minister Albert who opined Asean is “one of the most successful regional organisations in the world, especially because we have a dialogue partnership with countries like Japan, China and Korea.” RegionsWatch fails to see a clear connection between success in regional integration projects (RIPs) worldwide and their relationship with the latter three countries. Like RIPs without this link aren’t successful? Confusing.

Nonetheless, the article exposes some very interesting news: Turkey would not only be interested in the Organisation of the Islamic Conference, but also (NB: D8 grouping above!) be involved in an FTA with Philippines, and by extension ASEAN. Please note that the latter ASEAN country is a predominantly Christian country so the link with Turkey is not necessarily obvious. However, out of the 82 million population that makes the Philippines is a sizeable number—ie 6 million—that are Muslims.

Discussions will be spearheaded by the Philippines government that has invited Turkish ministers to “open a mechanism”, according to Turkey’s Daily News Online, for dialogue—under the moniker “Joint Economic Commission”.

...to be continued... [Posted:Sunday 21 March @ 2.39am CET]