UNECA - Capacity building for inclusive and equitable African trade arrangements
Posted on: March 30, 2021
The implementation of this TCII contribution agreement by UNECA aims to build the capacity for inclusive and equitable trade targeting policy makers and the private sector to increase the capacity of African private sector to take better advantage of preferential trade agreements and arrangements. This Project is part of a broader programme of the ECA/ATPC that aims to boost intra African trade and accelerate private sector development.
In line with the project work plan, the studies on the impacts, challenges and opportunities arising from preferential trade arrangements/agreements for Africa to spur more inclusive and equitable benefits have been completed. The five main studies are as follows; i) E-Commerce Provisions in Preferential Trade Agreements to strengthen the capacity of the African private sector to take better advantage of e-commerce in preferential trade agreements and arrangements, with focus on EAC ; 2) Extending the benefits of free trade to informal cross border traders with a view to strengthen the capacity of both private and public sector actors to support informal traders to better tap into preferential market access opportunities and gradually formalize their trade, with focus on ECOWAS; 3) Negotiating Institutions: Putting in the Right Foundations to strengthen the capacity of the African private sector to better engage in the negotiation and implementation of preferential trade agreements and arrangements, and particularly those relating to trade in services, with focus on ECCAS; 4) Preferential Trade Agreement Compliance to strengthen the capacity of the African private sector to comply with and take better advantage of preferential trade agreements and arrangements, focusing on Southern Africa; and 5) PTA utilization by the private sector in Africa, and particularly vulnerable groups within the private sector, the constraints they face, and where support to improve the use of PTAs should be prioritized, with continental focus.
The studies highlighted the existing gaps on the respective thematic areas in each region. The findings of the studies lays the foundation for the provision of technical assistance to RECs and Member States and the delivery of capacity building to policy makers and the private sector.
Expert Group Meeting (EGM) on preferential trade agreement compliance in the SADC region
The EGM on preferential trade agreement compliance in the SADC region was held on 5th October 2020. The study focused on two crucial non-tariff measures that must be complied with for private sector operators to access preferences: (1) Rules of Origin (RoO) and (2) Technical Barriers to Trade (TBT) and Phyto-Sanitary (SPS) measures. The objective of the meeting was to receive constructive feedback from experts in attendance to inform the finalisation of the study.
A centrepiece of the experts’ group meeting involved critical feedback and discussion on the research findings. Issues were raised and emphasised including lack of awareness and knowledge over how to comply with the preferential trade arrangements, particularly given the lack of harmonization on these rules across Africa. With African trade being driven by SMEs, there was argued to be particular efforts required in these areas to improve the utilisation of preferencial trade arrangements. Another critical area cited was the underdevelopment of national quality infrastructure.
EGM on ‘Negotiating Institutions: Putting in Place the Right Foundations’
The EGM on ‘Negotiating Institutions: Putting in Place the Right Foundations’ was held virtually on 7th October 2020. This study focused on the Central African region and focused on developing guidelines on how to strengthen the capacity of the African private sector to better engage in the negotiation and implementation of preferential trade arrangements.
The expert group meeting welcomed the findings of the study and provided useful feedback, including on the need to expand the analysis to cover the pre- and post-negotiations stages given the critical importance of design, implementation and enforcement. Experts also stressed the particular importance of transparency in negotiations and the need to ensure full participation by MSMEs, the youth and women.
Expert Group Meeting on the PTA utilisation study
The Expert Group Meeting on the PTA utilisation study was held virtually on 14th October 2020. This study is the widest in scope, covering all African sub-regions, and providing an overarching framework for the ECA-OACPS project to assess issues related to preference utilization in Africa and identify areas for improvement. The objective was to evaluate the extent to which African businesses are utilizing the trade agreements available to them, with a specific focus on shining light on the challenges African producers face with preferential trading agreements ‘within’ Africa, which is an under-studied area.
Experts praised ECA on the timing of the study, and for the strong policy focused recommendations and prescriptions emerging from the analysis. Issues were raised and emphasized included the need to expand the scope to include other challenges such as the often impermanence of PTA market access opportunities, the unpredictably of PTA requirements which can change with limited notice, the impact of preference erosion over time, and language barriers. Experts noted the need for customs to play a more supportive role in collating and providing detailed data to inform the analysis on PTA utilisation.
EGM on the study on extending the Benefits of Free Trade to Informal Cross Border Traders in the ECOWAS Region.
The EGM on the study on extending the Benefits of Free Trade to Informal Cross Border Traders in the ECOWAS Region was held virtually on 27 October 2020. The objective was to assess the options presented for overcoming the challenges of ICBT and in particular policies for extending the benefits of free trade to informal traders. Two key areas are the focus of this study: i) systems for more structured ICBT, including the potential for a simplified trade regime in the ECOWAS region; and ii) institutionalizing ICBT data collection for policymaking.
The main part of the experts’ group meeting involved critical feedback and discussion on the research findings. Suggestions were made around the importance of complementary initiatives, such as simplifying related documentation online and in accessible languages for informal traders and access to finance for SMEs. In terms of ICBT data collection, it was acknowledged that currently this area is donor-led and sustainability requires a transition to greater national responsibility by customs agencies, but that a breadth of important institutions already operate in this area and can be leveraged and strengthened. The interaction of human mobility and immigration with ICBT was also raised, with the suggestion that immigration data could be improved to capture ICBT flows but that caution has to be taken to ensure that data collected on informal traders isn’t used against them or scares them away from formalizing their activities.
EGM on the study on “E-commerce in Preferential Trade Agreements: Implications for African firms and the AfCFTA”
The EGM for the “E-commerce in Preferential Trade Agreements: Implications for African firms and the AfCFTA” study was held virtually on 29 October 2020. In January the AU Assembly decided that the AfCFTA will include negotiations for an additional “phase III” Protocol on E-commerce. The objective of the meeting was to provide feedback to ensure a well-aligned and informative research foundation to build the capacity of African negotiators on e-commerce, with a focus on the East African region.
A number of key action points were identified including the need to connect firm responses to the applicability within trade negotiations; explain why the survey responses and recommendations are important for policy; and incorporate inclusivity dimensions into the analysis, with a focus on women, youth and MSMEs. Experts also recommended that greater attention should be paid to assessing how to strike the right balance in intra-regional vs international negotiations, highlighting the need to weigh up positions in the AfCFTA limiting policy space at the WTO versus not allowing WTO positions to inhibit Africa-level discussions given the difference in contexts.
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