1.0       INTRODUCTION

The Southern and Eastern African Trade Information and Negotiations Initiative (SEATINI) Workshop was held in Harare from 30th March to 4th April under the auspices of the International South Group Network (ISGN). It was facilitated by resource persons with wide experience in international trade issues.

The Workshop, which was aimed at initiating a process of strengthening the capacity of African trade negotiators, was attended by senior trade negotiators from seventeen (17)  Eastern and Southern African (ESA) countries. Other participants were from non-governmental organisations (NGOs) as well as the civil society.

The Honourable N. Shamuyarira, MP., Minister of Industry and Commerce, Zimbabwe officially opened the Workshop.

2.0       DELIBERATIONS.

The Workshop reviewed the participation of ESA Countries in the WTO, and in particular, addressed the following key issues:

(i)                  the performance of the developing countries, and of African Countries in particular, in the WTO

(ii)                the role of regional integration for strategic engagement with the WTO, including the performance of African countries in the Lome Convention

(iii)               the Built-in Agenda and New Issues emerging at the WTO

(iv)              the implications of the implementation of the WTO Agreements for the developmental prospects of African countries.

-                     African countries have merely been reacting to the proposals and initiatives of the developed countries;

-                     there is a general lack of coherent national trade policies in ESA countries;

-                     the lack of human and institutional capacity to understand, negotiate and implement WTO Agreements

-                     the lack of an effective consultative mechanism for ESA countries at national and regional levels

-                     inadequate staffing in the missions of the ESA countries represented in Geneva

2.2       Regional integration and participation in Lome. Regional integration within African countries is recognised as an important strategic base for African countries to:

-                     negotiate amongst themselves appropriate frameworks for co-operation and co-ordination towards more balanced and mutually beneficial relations between countries at different levels of development;

-                     develop and diversify their productive capacities through combined and complementary programmes to improve their productivity and export capacities both before and as they seek to enter more competitively into the global economy; and

-                     create a collective base for African countries to engage more effectively in multilateral negotiating processes that are shaping the terms for international trade, investment and other trade-related issues, in the WTO.

The Workshop noted that there were several regional trading arrangements in the region that could be used as a means to develop and integrate the ESA economies more effectively into the global economic system. The process in the WTO should not hamper the regional arrangements to which developing countries belong.

With respect to Lome, the Workshop noted that the ESA countries had not benefited much from the preferential arrangements under Lome, due to restrictions arising from the use of the rules of origin, safeguard provisions and high tariffs on specific  agricultural products and bureaucratic delays in implementing the benefits from the arrangement.  The Workshop also noted that the main thrust of the EU Green Paper on the future Lome is on reciprocal preferences. It was observed that the EU has already prepared their negotiating mandate. This mandate aims, among other things, to use a future ACP-EU co-operation agreement to enforce a narrow implementation of existing WTO rules and agreements on services, investment and intellectual property, and to promote the adoption of new rules on investment, competition, and procurement, to the detriment of the developmental needs of ESA countries.

2.3       Built-in Agenda and “New Issues”

The Workshop noted that:

-                     the Working Groups on the ‘new’ issues (trade and competition policy, trade and investment, and transparency in Government procurement) were established predominantly at the insistence of developed countries and have started their work.  A Committee on Trade and the Environment has been considering the linkage between trade and environment

2.4       Implementation and Implications:

 The Workshop noted that the burden of implementation of Uruguay Round (UR) commitment is rather heavy. The UR Agreements are very specific about the timing of the implementation of various obligations. The implementation has four broad elements:

(i)                  formulation of laws, regulations and procedures to give effect to the Agreements;

(ii)                establishment of new institutions;

(iii)               elimination of trade measures that conflict with the URA within a given time-frame; and

(iv)              sending in and complying with the notification requirements of the Agreements.

The Workshop identified some of the problems and constraints affecting the implementation of multilateral trade agreements that should form a basis for future WTO negotiation agenda, notably:

-                     the difficulties in complying with the heavy burden of notification requirements;

-                     the manner in which most developed countries are implementing their obligations under the UR Agreements which left a lot to be desired, e.g. increased resort to SPSs, TBT measures and other NTBs, which result in a lack of  any real opening of trade opportunities;

-                     the need to formulate and introduce laws, regulations and procedures for the implementation of some of the agreements  can be very expensive;

-                     the lack of provisions that focus on enhancing the supply-side capacity of ESA countries, particularly as it was noted that existing market access provisions are insufficient;

-                     the imbalances in certain agreements, which require rectification (e.g. TRIMs, Agreement on Agriculture and the Subsidies Agreement), including restitution of lost rights.

3.0     RECOMMENDATIONS

African countries should be pro-active and better prepared for WTO negotiations especially in possible new areas. This could be achieved, inter-alia, through defining their trade-related objectives and needs, in order to identify the issues of interest to them. On this basis, they can proceed to strategically determine the most appropriate negotiating strategy.

3.1.      Strategies for new WTO negotiations – 2000 and beyond

The Workshop noted that opinion is divided on starting a new Round of Trade Negotiations, a new Round with a Sectoral approach and Negotiating within the context of the present Round. Proponents of either arguments acknowledge two basic approaches, namely:

(a)                Built-in Agenda,

(b)               Built-in Agenda plus New Issues.

The Workshop strongly opposed the idea of a New Round and recommended that negotiations on the Built-in Agenda continues within the context of the present Round but should the agenda overlap Built-in issues, ESA Countries should be prepared to formulate new issues of interest to them for inclusion in the new negotiations, to be undertaken on a non sectoral basis.

The Workshop recommends that the developed countries’ Uruguay Round Agreements (URA) commitments be fully implemented, particularly the WTO Ministerial decision on Measures concerning the possible negative effects of the reform programme on least developed countries and net food importing countries.

Developed countries should be urged not to use some Multilateral agreements, in particular, the Anti-dumping Agreement, the Sanitary and Phytosanitary and Technical Barriers to Trade Agreements in a discriminatory manner thus creating barriers against imports from developing countries.

With respect to the Built-in Agenda, the following recommendations emerged:

3.1.1    Market access

1.      Whenever there is injury or threat of injury to the domestic industry, ESA Countries should take safeguard action.  Whenever there is injury from dumping there should be anti-dumping action.  ESA Countries should establish appropriate mechanisms for these purposes.

2.      ESA Countries ought to ensure that future Multilateral Trade Negotiations take into account their developmental needs. In this regard, African countries are urged to take up issues affecting the entry of their products into the developed country markets, in WTO including:

-     tariff peaks and tariff escalation targeting particular sectors of export interest to ESA Countries.

-     non-tariff measures, particularly Sanitary and phytosanitary measures.

3.1.2.   Agriculture

It was noted that some African countries at the time of entry into force of the Agreement on Agriculture, had either not notified their existing subsidies or notified that they had  no subsidies and had thus unwittingly forfeited their right to maintain or introduce subsidies. This is an issue which needs rectification in order to enhance flexibility to African countries in the use of measures to stimulate agricultural production and exports.

It is therefore, recommended that certain positive steps be taken to rectify certain anomalies with respect to the application and operation of existing “stand-still” commitments on domestic support and export subsidies under the Agreement on Agriculture.

With respect to the elimination of trade measures within a specified time frame, it was recommended that ESA Countries should urge for a review of the “stand-still” commitment on domestic support and export subsidies under the Agreement on Agriculture. There is a need for rectification to provide enhanced flexibility to African countries in the use of measures to stimulate agricultural production and exports.

3.1.3    Services

African  countries are encouraged to study their services schedules, particularly when the GATS Agreement comes up for review in 1999-2000. Developing countries should push for the consolidation of their rights under the GATS agreement, in particular:

-                     the right not to be compelled to afford reciprocity to the developed countries

-                     the right to the use of safeguard action.

ESA Countries should be aware that they are currently under no obligation to liberalise, or they may liberalise only a few sectors.  In the sectors of Services due for review, developing countries should selectively consider the sectors to be liberalised.

3.1.4  TRIPS

1.      The Workshop noted with concern that the overall implications of the Trade-Related Intellectual Property Rights (TRIPs) Agreement is that it would have a serious negative effect on development especially on the capacity and opportunities for developing countries to develop and use indigenous and local technologies.  In implementing the TRIPs Agreement, ESA Countries should be aware that there are various options in each of the aspects of TRIPs, and they should identify and choose the options that are most appropriate to their interests and least damaging.

2.      Moreover ESA countries should begin the process to propose changes in the TRIPs  Agreement that would be in the interests of development and of the ESA Countries

3.      In view of its adverse implications for development, ESA countries should carefully examine many aspects of the TRIPs Agreement in order to be prepared for proposing appropriate amendments during the review process

4.      The ESA countries should push that the TRIPs Agreement prohibits the patenting of Biological materials and living organisms (whether naturally occurring or modified), as this patenting would have adverse effects on Community Rights. (In the event that this proposal is not acceptable, then a fall back position of effectively protecting community rights should be advanced.) This includes that ESA countries should establish a sui generis system that protects the intellectual rights and knowledge of communities in relation to plant varieties.

5.      We endorse the OAU/STRC Task Force declaration on community rights and access to biological resources and the related draft legislation and we urge OAU Governments and Ministers to take measures to implement these in their national policies.

6.      ESA countries should actively participate in the Convention on Bio-Diversity (CBD) to establish an equitable system of the sharing of benefits in the use of biological resources and to ensure that the treatment of IPRs does not facilitate biopiracy but instead prohibits biopiracy and protects the rights of local communities and developing countries.

3.1.5  TRIMS

African  countries are facing serious problems in conforming with the Trade-Related Investment Measures (TRIMs) Agreement as it places serious constraints on their industrial development. Under the TRIMs Agreement, it is recommended that a review of the National Treatment requirement (Article 2… TRIMS Agreement) be undertaken as a matter of priority, (insofar as the domestic content requirement which was of immense benefit to ESA States has been explicitly prohibited by Article 2.2). This prohibition results in an unnecessary outflow of foreign exchange from ESA States.

3.2.      New Issues

With respect to new issues, the following recommendations emerged:

3.2.1    Trade and Investment

-                     The ESA Countries, should ensure that they put forth their views effectively in promoting development perspectives and principles in the process of the work of the WTO working group. -                     ESA Countries should take note with great concern that the objective of the industrialised countries pursuing the subject of investment policy in WTO has been to work out a multilateral framework or agreement in WTO to curtail the rights and discretion of the host countries to regulate the inflow, conditions and operations of foreign investment in order to provide full freedom and rights for the foreign investors.  The ESA Countries have to remain fully prepared to meet with the situation when the developed countries come back with their old proposals. Therefore, the ESA Countries should start considering the various elements from their point of view to ensure preparedness during the envisaged view of the TRIMs in 1999.

-                     The ESA Countries should continue to regulate and  welcome Foreign Direct Investment (FDI) with caution. These countries should oppose any proposal that might be brought into the WTO regarding the Multilateral Agreement on Investment (MAI). Instead of negotiating an MAI, taking into account problems of developing countries, the ESA Countries should advocate that negotiations start on liberalisation of labour movement.

-                     The OECD Countries may complete their multilateral agreement on investment and then pressurise developing countries to join. As the MAI removes the rights and discretion of developing countries to regulate foreign investors, and as its dispute settlement system is of grave concern, ESA Countries should reject any attempts to get them to join the MAI.

3.2.2.   Government procurement

The working group in WTO is undertaking a study on transparency in government procurement practices with a view to develop elements for an appropriate agreement on this subject. The ESA countries should:

-                     effectively participate in the working group and in so doing they have to remain careful so that they do not undertake unreasonably heavy obligations on themselves.

-                     Recognise with concern that this study is an initial and interim exercise by industrialised countries with the further aim to bring in proposals to expand the  markets for their goods, through the introduction of the principles of MFN and National Treatment in Government Procurement. The ESA Countries should guard against such a move. Africa should realise that the exclusion of the Government Procurement from the principle of National Treatment is a part of the existing rights and obligations ( under Article 3.8 a of GATT 1994) and it is beneficial to them.

3.2.3    Competition Policy

At the first WTO Ministerial Meeting in Singapore, the Ministers agreed to:

“Establish a working group to study the issues raised by Members relating to the interaction between trade and competition policy, including anti-competitive practices, in order to identify any areas that may merit further consideration in the WTO framework”.

The Workshop noted with concern that with the introduction of competition policy which was being spearheaded by the major players, the aim was for these powers to get to the South and establish “effective” domestic anti-monopoly laws so their corporations can have better market access.  Whilst developing countries may decide themselves that they require competition policy, they must beware of proposals that pressurise them to have laws that inadvertently pave the way for big foreign firms to take over and monopolise their economies.

The workshop observed that although the report of the working party was not over yet, the developing countries needed to introduce disciplines on foreign firms so that domestic consumers did not suffer and domestic producers and traders had necessary safeguards.  There was also need for a multilateral framework for eliminating or curbing anti-competitive practices in international trade.  Similarly, mergers of very big firms, leading to significant constraints on competition in international trade, should also be put under some discipline. Specific obligations of the firms in home countries should be defined and enforced

The workshop recommended that:

-           African Governments should effectively participate in the working group on competition to protect their interest, including calling for a review of the impact of trade liberalisation on competition in international markets.

3.3.      The performance of African Countries in the WTO

The ESA Countries should define their national and regional development objectives from which they would elaborate trade strategies that contribute to the achievement of long-term sustainable and equitable development. In addition the workshop recommends that:

-           The workshop called for an effective allocation of human resources capacities by African  Countries in their WTO missions in Geneva.  It was noted with concern that more than twenty African Countries are not represent in Geneva.  In this regard, it is recommended that  ESA missions in Geneva need to be strengthened both quantitatively and qualitatively by skilled persons.

-           At the Regional level, the SEATINI Initiative could be encouraged to become a consultative mechanism for Government officials and Civil Society on Trade and trade-related matters for strengthening the enabling institutions and systems that support the capacities of African businesses to trade. 

-                     The ESA Countries should strengthen their institutional capacity to participate effectively in international trade and in the activities of the WTO. To achieve this, these countries should increase their representation in Geneva and Brussels. The strengthened institutional capacity should be complemented with extensive co-ordination both in Geneva and in Capitals.

-                     The ESA Countries should explain their positions firmly, clearly and boldly in the formal and informal meetings in the WTO. Mutual support among African and other developing countries would help this process.

-                     The ESA Countries should urge all developing countries to give special support to the interest and positions of the least developed countries in the WTO.

-                     The ESA Countries, on reporting back on the outcome of the High-Level Meeting (HLM), should emphasise the need to address the supply-side constraints. This is important if these countries are to benefit from the market access pledges. There is need to ensure that these market pledges are notified. There should be a well-defined process of co-ordination among the six agencies and with the participating least developed countries on the implementation of the Integrated Framework.

-                     The ESA Countries should press for more firm support on the question of debt relief if the LDCs are to be effectively integrated into the trading framework. The participation of the six agencies in the Integrated Framework for LDCs provides a forum at which these important issues of debt can be tackled. The impact of debt on trade should not be overlooked.

-                     countries that did not make commitments for improved market access conditions in favour of LDCs in the High-Level Meeting should be encouraged to do so.

-                     in light of deficiencies in the capacity of developing countries in the region to participate effectively in the WTO, to establish integrated programmes of technical assistance and institutional support that include all countries, not only the least-developed.

-                     ESA countries should urge  for co-ordination between the World Bank, IMF and WTO in order to avoid contradictions in the commitments as well as implementation of their programmes.

3.4.      Regional Integration and Participation in Lome The Workshop noted that integration into the international trading system was a function of a country’s ability to:

(a)                                        identify and exploit trading opportunities;

(b)                                       effectively defend its trading rights;

(c)                                        fulfil its trade obligations;

(d)                                       define and pursue its trade and development interests in trade negotiations.

The Workshop appreciated the fact that the ESA countries had individually and/or collectively elected to identify themselves with the existing regional integration arrangements or groupings, e.g. COMESA, SADC, IGAD, etc., as a basis for development and engaging more competitively in global trade.  It was noted that such initiatives could also promote further trade liberalisation and may assist least-developed and developing countries in integrate more effectively into the international trading system.

The Workshop noted the importance of the existing regional arrangements involving the EU and ACP countries and recommends that:

-                     the starting point for future EU-ACP trade negotiations should be a firm commitment from the EU to maintaining the existing preferences currently granted in ACP countries. Without such a commitment, the very real danger exists that the debate around future relations could generate a level of uncertainty, which could have serious consequences for investment and production in key areas of ACP economies (e.g. textiles, fisheries, agro-processing, horticulture, floriculture, etc.). It is the Workshop’s strong view that from this starting point, consideration should be given to enhancing existing preferences in those areas where ACP economies can gain immediate benefit such action wouldn’t pose any real threat to domestic EU industries.

-                     a future framework of co-operation must support ACP countries to rectify the imbalances contained in the rules and agreements of the WTO, and prevent the adoption of further rules that undermine the needs and interests of ACP countries.

-                     it is essential that any external support for the Regional groupings in the region should take into account the different levels of economic, administrative, institutional and political development of these countries in order to ensure that the processes of integration are politically, economically and socially sustainable.

-                     it is also vital that the pace, extent and structure of moves towards closer regional integration are determined with a view to ensuring an equitable distribution of benefits and costs. This is particularly important where there are vast differences between the levels of development of the countries concerned.

CONCLUDING SESSION