Conclusions and Recommendations

Introduction

1. A High-level Brainstorming Meeting for African Trade Negotiators Preparatory to the Fourth WTO Ministerial Conference was held in Addis Ababa, Ethiopia from 26 to 29 June 2001. The Meeting was jointly organized by the OAU General Secretariat and the United Nations Economic Commission for Africa (UNECA), and in collaboration with the United Nations Conference on Trade and Development (UNCTAD), the African Economic Research Consortium (AERC) and the World Trade Organization (WTO).

2. The Meeting was convened in conformity with the decision of the Third Ordinary Session of OAU/AEC Ministers of Trade held in Cairo, Egypt, in September 2000 and the relevant decisions of the OAU Council of Ministers held in Tripoli, Libya in February 2001 which, inter-alia, called for a detailed assessment, from an African perspective, of progress on the state-of-play on the issues in the work programme of the WTO, as the basis of the preparation of African countries for the Fourth WTO Ministerial Conference scheduled to be held in Doha, Qatar, from 9 to 13 November, 2001. In this regard, the convening of the Meeting was opportune in view of the preparatory process at the WTO. It was envisaged that the outcome of the Meeting would be transmitted to the Fourth Ordinary Session of OAU/AEC Ministers of Trade that is scheduled to be held in Abuja, Nigeria, from 17 to 21 September 2001.

3. Representatives of 27 African countries from Geneva Missions and capitals, secretariats of regional economic communities, civil society, the private sector, the African Development Bank (ADB), the African, Caribbean and Pacific (ACP) Group Secretariat, the International Organization of La Francophonie (OIF), and the United Nations Development Programme (UNDP) attended the Meeting. Financial support was provided by the Department for International Development (DFID, UK) and UNDP.

Agenda Item 1: Opening of the Meeting

4. The opening ceremony was addressed by Ambassador B.G. Chidyausiku, Permanent Representative of the Republic of Zimbabwe in his capacity as Co-ordinator of the WTO African Group in Geneva. Mr. Patrick Asea, Officer-in Charge of the Economic Commission for Africa, delivered a statement on behalf of Mr. K.Y. Amoako, Executive Secretary of the Economic Commission for Africa. Ambassador Vijay. S. Makhan, Assistant Secretary General of the OAU addressed the Meeting.

5. The opening statements focused on issues of importance to African countries in their preparations for the Fourth WTO Ministerial Conference and the challenges that they face in the multilateral trading system.

Agenda Item 2: WTO Work Programme since Seattle and State-of-Play in Preparation for Doha Ministerial Conference

6. The Meeting reviewed developments in the WTO since the Third Ministerial Conference that was held in Seattle in December 1999 and the current state of play in preparation for the Fourth Ministerial Conference. Two main observations emerged from the discussions:

1. Useful lessons could be drawn from the unity and solidarity of African countries in preparation for Seattle and at Seattle. It was recognized that unity among African countries during the current process would strengthen Africa's position with respect to its concerns, at both the national and continental levels; and,

2. The confidence building measures undertaken following the failure of Seattle have gone some way in restoring momentum to the WTO work programme, but more remains to be done.

7. The Meeting took note of the Chairman of the General Council's Initial Checklist of Possible Issues for Discussion at Doha.

Agenda Item 3: Implementation Issues and Mandated Reviews

8. The Meeting reviewed the status of implementation issues and mandated reviews in the WTO work programme since the Second WTO Ministerial Conference that was held in Geneva in 1998, the Seattle Ministerial Conference preparatory process, and of the post-Seattle confidence building measures.

9. It was noted that the Meeting of the WTO General Council of 15 December 2000 reaffirmed that "the General Council shall address the outstanding implementation-related issues and concerns, including those set out in paragraphs 21 and 22 of the revised Draft Ministerial Text dated 19 October 1999 (Job (99)/5868/Rev.1), as well as any other implementation-related issues raised by members, as envisaged in the Decision of 3 May 2000 and the work programme agreed on 22 June 2000, with a view to completing the process no later than the Fourth Session of the Ministerial Conference".

10. Notwithstanding the foregoing, it was widely recognized that more progress is required to address fully implementation issues and concerns. In this context, it was affirmed that many African countries continue to face difficulties in adapting their national laws and regulations and improving their institutional capacity to meet their WTO obligations. Further emphasis was put on the need to address the asymmetries and imbalances in a number of WTO Agreements. It was also stressed that African countries should continue to seek the effective implementation of obligations by developed countries, especially those relating to special and differential treatment measures for developing countries.

11. Against this background, it was agreed that in line with the Statement adopted at the Second Ordinary Session of the OAU/AEC Ministers of Trade in Algiers in September 1999, and reiterated at their Third Ordinary Session in Cairo, in September 2000, and in conformity with the decision of the WTO General Council of 15 December 2000, the following actions need to be taken by the General Council no later than the Fourth WTO Ministerial Conference:

1. A revaluation of the efficacy, adequacy and sufficiency of the concept of transitional periods in a number of WTO Agreements, particularly on Trade-Related Aspects of Intellectual Property Rights (TRIPS), Trade-Related Investment Measures (TRIMs), taking into account the resource and implementation capacity constraints facing African countries;

2. Review of Annex VII of the Agreement on Subsidies and Countervailing Measures (SCM) to take into account specificities and development needs of a number of African countries;

3. An operationalization of the Marrakech Ministerial Decision Concerning the Possible Negative Effects of the Reform Programme on Least Developed Countries (LDCs) and the Net-Food Importing Developing Countries (NFIDCs);

4. The granting of the waiver request for the ACP/EU Partnership Agreement;

5. (e) Action towards the realization of technology transfer objectives as envisaged in Articles 7, 8 and 66.2 of the TRIPS Agreement; and other relevant provisions of WTO Agreements;

6. To confirm the common understanding that no provision of the TRIPS Agreement prohibits members from taking measures to provide access to medicines at affordable prices and to promote public health and nutrition. In addition, a moratorium on resorting to the Dispute Settlement Mechanism in this regard should be adopted.

7. An understanding that the review of the TRIPS Agreement under Article 71.1 shall examine to what extent the objectives set out therein have been fulfilled, taking into account the review of Article 27.3 (b) (patenting of life forms, traditional knowledge and biological resources);

8. Reaffirmation that the provisions of Article 5.3 of the TRIMs Agreement recognizes the trade, development, and financial needs of developing countries noting that the Article 9 review shall entail inter alia an examination of the effects of this Agreement on the development prospects of developing countries;

9. The completion of the work programme on the harmonization of non-preferential rules of origin;

10. Further action towards implementation of the Marrakech Declaration on Achieving Greater Coherence in Global Economic Policy-Making;

11. The need for the WTO and other international organizations to continue and increase technical and capacity building assistance activities through the Integrated Framework (IF) and the strengthening and expansion to more African countries of the Joint Integrated Technical Assistance Programme for Selected Least Developed and Other African Countries (JITAP).

12. Resolution of outstanding implementation issues in the light of the 15^th December General Council Decision; and

13. Granting of permanent observer status to the OAU and other intergovernmental organizations in view of their trade policy mandate.

12. To the extent that it may not be possible to address the remaining implementation issues before and at Doha, they should be taken up after Doha.

Agenda Item 4: Action in Favour of Least Developed Countries Strategy for Follow-up of the Trade Cluster of the LDC III Plan of Action Adopted in Brussels

13. The Meeting reviewed policies and measures contained in the Plan of Action for the Least Developed Countries for the Decade 2001-2010, under Commitment 5 "Enhancing the Role of Trade in Development", that was adopted at LDC III held in Brussels in May 2001. The following conclusions and recommendations were drawn:

1. The issues of concern to LDCs should be fully addressed in the preparatory process for Doha, at Doha and after Doha;

2. On market access, the recent initiatives by the EU and the US on Everything But Arms (EBA), and the African Growth and Opportunity Act (AGOA), respectively, are to be welcomed. However, these are autonomous initiatives. The utilization by the countries concerned could be improved by providing bound, duty-free, quota-free market access for all products, with flexible rules of origin. Moreover, it is also important to address adequately supply-side constraints in order to expand productive capacity and competitiveness to take advantage of market access opportunities; although it was noted that this was a matter for national governments and agencies with resources and mandates to do so such as the World Bank and the UNDP;

3. Regarding standards setting and quality control, the provision of technical and financial assistance is required to meet the demands of compliance. In this regard, Article 9 of the SPS Agreement and Articles 11 and 12 of the TBT Agreement should be transformed into binding commitments on developed countries;

4. The IF remains a viable mandate for delivering co-ordinated trade and trade-related technical assistance to LDCs and mainstreaming of trade policies requires adequate funding and greater transparency in its implementation, including the basis for selecting beneficiary countries;

5. On accession of LDCs, the following measures adopted under Commitment 5 at LDCs III should provide the WTO with guidance on this matter:

1. ensuring that the accession process is more effective and less onerous and tailored to their specific economic conditions, inter alia by streamlining WTO procedural requirements,

2. providing for automatic eligibility of all acceding LDCs for all provisions on special and differential treatment measures in existing WTO agreements,

3. in view of LDCs' special economic situation and their development, financial and trade needs, WTO members should exercise restraint, where appropriate, in seeking concessions in the negotiations on market access for goods and services in keeping with the letter and spirit of the provisions of the Ministerial Decision on Measures in Favour of the Least Developed Countries,

4. Seeking from LDCs in the accession stage only commitments that are commensurate with their level of development,

5. Continuing to provide adequate and predictable assistance to LDCs for their accession process, including technical, financial or other forms of assistance, and

6. Accelerate the accession process for LDCs that are in the process of accession to WTO by providing special accession track.

14. In addition to the foregoing from Commitment 5, it is also recommended that a special and fast accession track should be provided.

Agenda Item 5: Agriculture

15. The Meeting reviewed the progress of the WTO negotiations on agriculture, and discussed areas where African countries should come up with proactive proposals on modalities for the continuation of the agricultural reform process as mandated by Article 20 of the Agreement on Agriculture, drawing upon individual country perspectives and the African Group proposal (G/AG/NG/W/142 of 23 March 2001).

16. The Meeting agreed that the African Group proposal captures well the areas where the interests of African countries converge. One major area of African common interests is genuine improvement in market access for their agricultural exports as well as maintaining flexibility for developing countries in the implementation of the Agreement on Agriculture. Another is the need to link the agricultural negotiations to agricultural productivity and competitiveness, while meeting core non-trade concerns of African countries such as food security, poverty reduction, and rural development. These negotiating interests need to be reflected in the second phase of negotiations - which seeks to narrow differences among members.

17. Against this background, the following observations were made in light of African countries' continued participation in the negotiations:

1. With regard to the choice of tariff reduction modalities, attention needs to be given to the following elements: the effect of any modality upon reducing tariff peaks and tariff escalation in developed country markets; the effect of any modality upon the anticipated level of bound tariffs in developing countries (to maintain existing policy flexibility in tariffs); the effect of any modality upon any residual barriers, such as complex non-ad volorem rates and minimum pricing system in developed countries;

2. Given that OECD countries are spending up to US$1 billion/day on agricultural support, there is urgent need to identify modalities that will lead to substantial progressive reductions in export subsidies, leading to their eventual elimination. There is also the need to reduce trade-distorting domestic support in developed countries;

3. A development perspective needs to be reflected in the rules under a new Agreement on Agriculture. For example, the special safeguard mechanism under Article 5 of the Agreement on Agriculture should be reviewed and an appropriate agricultural safeguard mechanism for developing countries should be developed as special and differential treatment;

4. Given that the last two decades have seen much progress in advances in agricultural production and processing technology, the acceleration of agricultural growth and competitiveness requires not only increasing levels of investment but also access to new technologies. In this regard, there is a need to operationalize the technical and financial assistance commitments made by developed countries, such as those under Article 9 of the SPS Agreement, Article 10 of the TBT Agreement, and in the Marrakech Decision concerning LDCs and NFIDCs;

5. African countries need to take appropriate measures to promote intra-regional agricultural trade flows; and,

6. The OAU should organize a sectoral meeting at the level of ministers of agriculture before the March 2002 stocktaking meeting of the second phase of the WTO negotiations to review, inter alia, linkages between domestic agricultural policy and trade negotiating objectives.

Agenda Item 6: Trade in Services

18. The Meeting reviewed the state of play in the negotiations on trade in services and relevant preparations for the Doha Ministerial Conference in this sector. These negotiations started in early 2000 under the provisions of Article XIX of the GATS. The negotiations are currently in the second phase, which is concerned with discussions of the various proposals that have been submitted on both horizontal and sector-specific issues. The first phase was concerned with reaching consensus on the management of the negotiations and on establishing negotiating guidelines as required by Article XIX:3.

19. Against this background, the meeting took note of the following:

1. The important contribution and effective participation of the WTO African Group during the first phase of the negotiations. In particular the Negotiating Guidelines that were adopted can be considered "development friendly" because they captured a number of elements of importance to developing countries and Africa;

2. The need to preserve the architecture of the GATS and to pursue the effective implementation of the provisions in favour of developing countries, notably Articles IV and XIX; and

3. The need to submit proposals aimed at implementing the provisions of GATS Article IV, among others.

20. The following conclusions and recommendations were drawn:

1. African countries should reaffirm their right to regulate the services sector as enunciated in the Negotiating Guidelines;

2. There is a need to expedite the rule-making work, especially in the area of emergency safeguard measures. However, it is necessary for African countries to participate effectively in the rule-making negotiations;

3. African countries should identify areas of interest and priority, including those services sectors and modes of export interest to them;

4. African countries should engage developed countries to make commitments in those modes and sectors, which are of export interest to them;

5. African countries must address the issues of assessment of trade in services and treatment of autonomous liberalization;

6. African countries need to develop and submit proposals on Article IV of the GATS, and on movement of natural persons;

7. African countries should ensure that the request/offer approach remains the main method of negotiating specific commitments in services. In this regard, African negotiators need to be conscious of the implications of other negotiation approaches such as model, formula and clusters;

8. African countries should ensure that the negotiations are guided by the objectives of Articles IV and XIX of GATS which aim at progressively higher liberalization through successive rounds of negotiations; and recognizes that such factors as national policy objectives and individual levels of development can be taken into account for opening fewer sectors, liberalizing fewer types of transactions and attaching conditions;

9. African countries should co-ordinate their offers on services to ensure that services liberalization supports their development and regional integration processes. It is essential that liberalization of services at the regional and sub-regional levels should keep ahead of the multilateral process. This should also be related to building capacity and competitiveness of their economies at the regional level as provided for under Article V of the GATS, including with private sector participation;

10. Africa must develop effective regulatory mechanisms/institutions in the services sector; and,

11. The role of UNCTAD, through its CAPAS programme in providing technical support in preparation for negotiation in this sector was recognized. The programme should continue this support, taking into account the complementary role of relevant sub-regional, regional and international organizations such as the OAU, ECA, AERC, and South Centre.

Agenda Item 7: Co-ordination with the ACP/EU Partnership Agreement Negotiations

21. The Meeting noted that the ACP/EU Partnership Agreement is designed inter alia to promote the progressive integration of ACP countries into the global economy. The Agreement is built on five pillars, which are:

• Political dialogue;

• Involvement of non state actors, the private sector and civil society;

• Poverty reduction;

• Economic and trade co-operation; and,

• Improved delivery of development finance through rationalization of financial instruments.

22. It was further noted that economic and trade co-operation will be implemented in full conformity with the provisions of the WTO, including special and differential treatment. In addition, the ACP and the EU will conclude new compatible trading arrangements that will be flexible to take account of the parties' level of development and building on regional economic initiatives.

23. Against this background, the following conclusions and recommendations were drawn:

1. African countries that have not done so should take urgent steps to ratify the ACP/EU Partnership Agreement;

2. Co-operation in international fora is one of the main avenues of economic and trade co-operation in the ACP/EU Partnership Agreement. Accordingly, the ACP and EU countries should work together at the WTO on matters of mutual concern, including a review of GATT Article XXIV, to make it more development friendly;

3. There is a need for more effective co-ordination between Geneva, Brussels and capitals to ensure consistency in the approach to the issues;

4. African countries should make effective use of the instruments and mechanisms provided by the ACP/EU Partnership Agreement to enhance their production and trading capacities;

5. The issue of geographical and other configurations for negotiation of Partnership Agreement(s) with the EU as from September 2002 needs to be addressed. African Ministers of Trade should provide political guidance on this matter. In this regard, the OAU Panel of Experts should provide an analysis of the various options for the consideration of ministers, taking into account the objectives of the Abuja Treaty and the Constitutive Act of the African Union;

6. African countries should submit requests to the ACP Secretariat for technical assistance in preparation for the forthcoming ACP/EU and WTO negotiations as the modalities for the disbursement of funds allocated to trade negotiation capacity building have been finalized.

Agenda Item 8: New Issues: Investment, Competition Policy, Trade Facilitation, and Transparency in Government Procurement, Environment and E-commerce

24. The Meeting considered the status of those the Singapore issues (investment, competition policy, trade facilitation, and transparency in government procurement), and other issues that have been proposed by some members of the WTO for possible inclusion in the agenda for the Doha Ministerial Conference. These other issues include environment and e-commerce. Despite the insistence by those members, there is no consensus to negotiate and set up rules in these areas in the WTO.

25. Among the reasons noted for this during the Meeting are that:

1. These issues are not within WTO competence in developing multilateral rules;

2. Members are not convinced that negotiations in these areas would deliver benefits to African countries;

3. These issues would add more burdens of obligations, while the problems of implementing the Uruguay Round Agreements continue;

4. These issues would overload the WTO agenda; and

5. The proposals from the proponents and their implications lack clarity.

26. The Meeting also noted that discussions in the Working Groups have not been completed. For all these reasons, most African countries are not in a position to agree to launch negotiations in these areas. Rather, they are of the view that the study exercise should continue.

27. Regarding e-commerce, any consideration of the moratorium for the imposition of customs duties will be predicated on the provision of adequate infrastructural support for Africa. This should be reviewed at the Fifth Ministerial Conference.

28. While the African Group recognizes the importance of e-commerce, it need not be linked to developing multilateral rules within the context of the WTO in this area.

29. There has to be a consensus regarding negotiations on industrial tariffs. Such a consensus must include key elements, such as tariff peaks, tariff escalation and the establishment of meaningful provision of special and differential treatment measures for developing countries, with a view to promoting industrial development in Africa.

30. There was a view that it may be important to frame an approach that accommodates some concerns in these areas in preparing for the possibility that these issues may emerge on the Doha agenda.

Agenda Item 9: Africa's Positive Agenda

31. Various elements of Africa's positive agenda in all of the key areas including implementation, LDCs, agriculture, and services have been identified in the relevant sections of this document.

32. In addition, the Meeting noted that at the conclusion of the Uruguay Round, it was expected that a number of trade-related issues of importance to African and other developing countries such as trade and commodities, trade and finance, transfer of technology, would be taken up in the WTO work programme. This has not materialized.

33. The Meeting further noted that during the Seattle preparatory process, proposals were made by developing countries for the WTO to establish working groups on trade and debt, trade and finance, and trade and technology transfer. Such proposals also raise the question whether the WTO should be an international forum concerned with only trade liberalization or whether the WTO should also address broader development-related issues.

34. The Meeting took the view that trade, finance and debt as well as technology transfer are major concerns for African countries with critical implications for the future of development in Africa.

35. Accordingly, it was agreed that the WTO African Group should work closely with other developing countries in developing proposals to take forward concerns in such areas as trade, debt, finance, global economic policy coherence, and technology transfer with a view to working towards the establishment of working groups at the WTO on these issues.

36. It was recognized that while these are issues with broad implications for global economic governance and are also being addressed in other international fora, their treatment within the WTO would open another window for African countries to engage development partners on their concerns. This is also in line with advancing the Marrakech Decision on the Role of the WTO in Enhancing Global Economic Policy Coherence.

Agenda item 10: Round table on the challenges of mainstreaming trade in development

37. The Meeting recognized the role of trade as a major engine of economic growth.

38. However, the Meeting also agreed that trade and growth are not ends in themselves. A strategy of mainstreaming trade must be people-centred and therefore integrally related to poverty reduction strategies. The linkages between human development, rural, informal and formal sector production, adequate infrastructure, enterprise development, export promotion and macro-economic stability was noted. The advantages of regional economic co-operation and integration also need to be taken into account.

39. Other facets of mainstreaming trade include industrial development for diversification, structural transformation, and increasing levels of investment. The role of international financial institutions as well as development partners in mobilizing the resources required was emphasized. Accordingly, a fundamental challenge of mainstreaming trade lies in the sequencing and co-ordination of these various linkages, facets and resources at the national and regional levels, and with development partners. Each government must therefore take the necessary steps not only to empower private producers but also to manage the mainstreaming process in a dynamic and changing environment.

Agenda Item 11: Future Strategy

40. The question of future strategy as regards Africa's engagement with the WTO was approached from three perspectives: (a) national; (b) regional; and (c) multilateral.

41. At the national level, the Meeting emphasized the challenge of mainstreaming trade, capacity building within government, private sector and civil society to articulate national trading interest and to fulfil regional, international and multilateral trade obligations. In this regard, adequate representation at key centres such as Geneva and Brussels was seen as crucial, as well as co-ordination between capitals and national missions in these centres.

42. At the regional level, it was observed that the secretariats of both the United Nations Economic Commission for Africa (UNECA) and the Organization of the African Unity (OAU) require strong trade units to provide technical support to member states. The Geneva Mission of the OAU also needs to be strengthened. Regional economic communities (RECs) should enhance their capacities to engage in trade issues not only at the regional level, but also at international and multilateral levels. The African Development Bank was requested to consider intensifying its activities to assist African countries meet the challenges of mainstreaming trade. Regional research agencies such as the African Economic Research Consortium (AERC) and the OAU Panel of Experts must intensify their support function. Collaboration with UNCTAD, the South Centre, the Third World Network as well as other institutions providing technical support was emphasized.

43. At the multilateral level, the Meeting noted that the centrepiece of Africa's future strategy must be to maintain its unity in international and multilateral trade negotiations. In the light of problems of transparency and participation that have been experienced in the past, the Director General and the Chairman of the General Council of the WTO were requested to ensure that African member states are fully represented in all formal and informal meetings and consultations at the WTO. The Co-ordinator of the WTO African Group was asked to convey this view.

44. It was agreed that the priority issues for Africa including the positive agenda that were identified during the brainstorming meeting must be taken forward.

Agenda Item 11: Closure of the Meeting

45. The Meeting adopted foregoing conclusions and recommendations. The Meeting came to an end following brief statements by Ambassador B.G. Chidyausiku on behalf of the WTO African Group; Ms. Jo Elizabeth Butler on behalf of ECA; and Assistant Secretary-General Lawrence Agubuzu on behalf of the OAU.