|
tralac Newsletter • Issue 28 • March 2021
|
|
Welcome to the tralac newsletter
This has been an important month for tralac’s work on women in trade and women in trade governance. On 1 March, Dr Ngozi Okonjo-Iweala from Nigeria took office as the seventh Director-General (DG) of the World Trade Organisation (WTO). Her appointment is a first for women, and for Africa, and in this blog, The WTO Secretariat under new Leadership, we reflect on some of the priority issues on the WTO agenda that she will be engaging.
In this Trade Brief, Women in Services Trade: An update of participation and ownership data for Sub-Saharan Africa, we provide an update on previous work by tralac that tracks women in the services sectors, both in employment and in management. Using data from various sources including the 2021 World Bank Enterprises Survey, we present an overview of women in Africa’s services sectors. It is evident that women’s participation in the services sectors lags male representation; notably in management and ownership structures. In sub-Saharan Africa, for example, more firms with female top managers experience constraints related to access to finance and electricity than firms with male top managers. In addition, fewer firms with female top managers have websites than those with male top managers.
Findings such as these provide important prompts for policy responses and support interventions. One such intervention by the International Chamber of Commerce (ICC) aims to digitise 5 million women-led small and medium enterprises, and tralac is very pleased to announce its collaboration with ICC and United Parcel Services (UPS) to support women in trade. We’re also currently studying the inclusion of gender equality provisions in Africa’s regional trade and integration arrangements; this blog, Gender-Responsiveness in Trade Agreements – how does the AfCFTA fare?, provides an overview of gender equality in the African Continental Free Trade Agreement. tralac’s SheGovernsTrade program supports women in trade policy roles. We aim to support, in particular, young women by developing not only technical trade skills sets but also professional skills such as change management. By including mentoring in the program, we aim to build a strong network of women policy makers across the continent. Applications for our 2021 intake are open. We are also accepting applications for the 2021 tralac Certificate Program: International Trade Law and Policy for Africa’s Development.
We’re following the African Continental Free Trade Area (AfCFTA) negotiations and the launch of trade closely and are pleased to share with you our recent work on Investment. Investment, along with competition policy and intellectual property rights (IPR), are Phase II issues, currently being negotiated. Investment, and specifically the attraction of foreign direct investment (FDI), takes on special significance as countries reckon with the devastating effects of the ongoing COVID-19 pandemic and prepare strategies for post-COVID reconstruction and transformation. Efforts to support productive capacity development and diversification, across all sectors of the economy, must ensure that FDI that will support inclusive development outcomes. In this Trade Brief, Investment facilitation in Africa’s investment agreements, and these two Blogs – An Investment Protocol for the AfCFTA; and The Relationship between Investment and Mode Three of Trade in Services – implications for the AfCFTA negotiations – we discuss a selection of issues that should feature on the AfCFTA investment negotiating agenda. We emphasise investment facilitation and note that now more than 100 members of the WTO are participating in the Joint Statement Initiative on Investment Facilitation. There is much to be taken from this plurilateral initiative to inform the agenda of the AfCFTA investment negotiations. Investment facilitation is essential to improve domestic governance. We’ll keep you posted on our continued work on investment, competition policy and IPR, as well as e-commerce, a phase III issue, also currently being negotiated.
We look forward to your feedback and to engaging with you on these and other trade issues.
Stay safe.
The tralac Team
|
|
SheGovernsTrade development program
tralac’s SheGovernsTrade program supports women working in trade policy and governance to build technical capacity in international trade governance, to develop professional skills, including change management and to enhance women’s participation in trade governance across the continent.
20 Participants will be selected for the 2021 Development Program, with the initial training week taking place from 12-16 April 2021.
Applications close: 25 March 2021
|
|
Training opportunity: tralac Certificate Course
tralac is pleased to present its 2021 Certificate Course – International Trade Law and Policy for Africa’s Development. The course consists of three modules which will run from April to June.
The course is tailored for mid-level and senior trade policy officials and lawyers from Africa’s national governments, regional and continental Organisations, as well as experienced trade policy and law practitioners from non-state organisations.
Applications close: 25 March 2021
|
|
Recent blogs
How Should the AfCFTA Approach ICT Infrastructure Regulation? From a means of improving information dissemination, to a vehicle for electronic commerce, to a facilitator of payments, investment and the creation of virtual employment markets, the digital economy is the now economy. However, none of the substantial gains available from this digital world are accessible without infrastructure ...read more
Blockchain-Driven Trade Technologies and the Potential Benefits for African Trade. Certain new technologies, such as automation and artificial intelligence, threaten established markets and are poised to forever change the structure of modern economies. Disruption of this sort calls for proactive mitigating policy action, failing which it can be expected that there will be a high human cost to the new technology ...read more
Addressing a key bottleneck to broadband development in South Africa – spectrum auction falls at first hurdle. When the Independent Communications Authority of South Africa (Icasa) announced the spectrum auction in September 2020, it was widely hailed as a critical measure to eliminate the main bottleneck to broadband development in the country. It was expected to lower data costs and provide critical High Demand Spectrum (HDS) for the development of 5G applications. The R8 billion reserve price would have been a welcome boost to the national treasury …read more
Citrus Black Spot (CBS) after Brexit. Citrus black spot (CBS) is a fungal disease that affects the rind of a citrus fruit. CBS affects the fruit, leaves and twigs of citrus, but only the fruit symptoms are readily noted. It has a significant economic impact, mainly owing to the external blemishes that make citrus fruit unsuitable for the fresh market. Premature fruit drop caused by some infections may contribute to further economic loss …read more
VIEW ALL BLOGS
|
|
|
|
WORKING PAPER
The new Rules of Origin in the African Continental Free Trade Area (AfCFTA): what has been agreed, what remains outstanding
For trade to happen under the framework of the AfCFTA, and as part of the broader legal processes around the implementation of the relevant legislation, the parties to the agreement must agree on and implement the legal provisions covering rules of origin (RoO) and tariff schedules (and details around tariff reductions). At this time, this has for the most part not yet happened.
As with all RoO negotiations, tension will continue to evolve around different nations’ industrial and economic policies and objectives, and the perceived needs of incumbent economic operators (traders, consumers, producers) versus the potential benefits that could flow from RoO outcomes.
|
|
|
|
WORKING PAPER
Are African RECs Trade-Enhancing? A Panel Data Analysis
This paper employs both informal and formal analysis of panel trade and tariff data to determine the extent to which the gaining of preferential access to a market actually leads to increased trade volumes as a direct result. The two PTAs analysed are the EAC and the SADC, with imports into Uganda, from two new preferential trade partners; and South Africa, from six new preferential trade partners, the subjects of analysis. In both cases, the countries entering into preferential trade with an existing member of the PTA show eventually rising trade volumes directly as a consequence of acquired preferential access.
|
|
African Continental Free Trade Area (AfCFTA) Resources
Start of trading under the AfCFTA African Continental Free Trade Area (AfCFTA) Agreement began on 1 January 2021. To date, 36 countries have both signed and deposited their instruments of AfCFTA ratification with the AUC Chairperson. Of the 55 AU member states, only Eritrea has yet to join.
LINKS
For more background info on the AfCFTA, including its origins and negotiations process, adopted legal texts and policy instruments, and research and analysis from tralac, visit our dedicated AfCFTA Resources page.
|
|
|
Key trade stats for AGOA beneficiaries for the full year 2020 vs. 2019
|
2019
|
2020
|
Aggregate exports to US:
|
$ 20.4 billion |
$ 18.4 billion |
| - - (Share) of AGOA exports: |
$ 8.4 billion |
$ 4.1 billion |
| Total US import duties paid on imports from AGOA beneficiaries: |
$ 79 million |
$ 45 million |
| Top 5 Exporters |
2019 exports to US |
2020 exports to US |
Change 2019/20 |
| South Africa |
$7,634m |
$11,274m |
+48% |
| Nigeria |
$4,967m |
$1,514m |
-70% |
| Cote d`Ivoire |
$925m |
$882m |
-5% |
| Ghana |
$961m |
$719m |
-25% |
| Madagascar |
$848m |
$611m |
-28% |
| All AGOA countries |
$20,403m |
$18,412m |
-9.8% |
US imports from AGOA beneficiaries were down almost 10% in 2020, compared to 2019. Exports utilising AGOA preferences declined by half over the same period, driven by the 70% decline in Nigeria’s US exports which comprise mostly oil exports (oil qualifies under AGOA). Among the two leading AGOA exporters, South Africa (+48%) and Nigeria (-70%) saw contrasting fortunes in this respect. In fact, amongst the leading 15 exporters to the US, all but South Africa recorded lower aggregate exports to the US in 2020.
For South Africa, certain commodity exports provide the basis for the large overall year-on-year increase: Unwrought or semi-manufactured platinum exports to the US increased by 84% to $4.1 billion, while gold exports increased ten-fold to $1.47 billion. Motor vehicle exports, also a key export sector for South Africa, rebounded from a decline in 2019 and posted a 61% year-on-year increase in 2020 to $547 million.
|
|
|
|
During March 2021, the USTR under the Biden Administration launched its 2021 trade policy agenda and 2020 annual report (download it here). This 308-page document includes sets out key priorities, including ‘the development and reinforcement of resilient manufacturing supply chains, especially those made up of small businesses, to ensure that the United States is better prepared to confront future public health crises’. Covid-19 and economic recovery from its impacts are central themes. Another priority involves trade policies to address opportunities and challenges posed by the digital economy, and to prepare the US for any potential future disruptions to the global trading system. The opening of markets and reduction of trade barriers faced by US exporters are fundamental objectives, since “export-oriented producers, manufacturers, and businesses enjoy greater than average productivity and wages”.
The document also provides and overview of current trade negotiations, concluded negotiations, and existing trade agreements already in place.
Other matters addressed by the report include the US’ trade enforcement activities, WTO matters, trade policy development and a range of other trade related activities (digital trade, intellectual property, trade and labour, trade capacity building – including in Africa – and so forth).
|
|
|
|
The AGOA Business Connector is an online facility on AGOA.info to help enable trade and business connections between producers, exporters, importers, sourcing agents, trade-related service suppliers including trade finance, logistics and related services, support organisations (such as business chambers and exporter associations and others), both from within sub-Saharan African AGOA beneficiary countries and the United States. Registered users are also able to list their businesses or professional trade-related service on the platform, and to communicate with other listings through a messaging facility.
> Download the AGOA Business Connector Brochure at this link
|
|
Download: AGOA guides and info-graphics
|
|
|
tralac has produced a number of info-graphic type brochures (see section on AGOA.info / Exporter Toolkit) covering a range of AGOA-related topics, including on AGOA’s legal provisions with regard to eligibility and annual/out of cycle reviews, rules of origin, AGOA FAQs, sector-focused brochures (textiles and clothing, agriculture), as well as national AGOA brochures relating to Botswana, Ethiopia, Ghana, Kenya, Lesotho, Madagascar, Mauritius, Namibia, Nigeria, South Africa and Tanzania.
|
|
|
|
