Post Hong-Kong Retreat of African Ambassadors,Trade Negotiators on the Doha Trade Round

Statement

By Dr. Cornelius T. Mwalwanda
Principal Advisor
ECA Geneva Interregional Advisory Services

17-18 February 2006
Montreux, Switzerland

Your Excellencies
Ambassador Masri, Representative of the African Union
Representatives of Missions and Organizations
Ladies and Gentlemen

My humble duty this morning is to welcome you all on behalf of the United Nations Economic Commission for Africa (UNECA) to this first Retreat of African Ambassadors and trade negotiators based in Geneva, which is taking place after the Hong Kong WTO Ministerial Conference. First and foremost, Let thank our sister organization, the African Union for associating us with this activity and for the work they have put in, in organizing this Retreat. Secondly, let me also pay tribute to the United Nations Development Programme (UNDP) and the African Trade Policy Centre (ATPC), through the Canada Fund, for the substantial funding they have provided for this activity.

Ladies and Gentlemen, this Retreat is important in many respects. Firstly, it is taking place after the Hong Kong WTO Ministerial Conference where important decisions were taken that will affect the course of the current trade negotiations and hence the future of millions of Africans. Secondly, it is taking place on the road leading up to the "modalities stage" of the negotiations and hence the timelines that will determine the content and elements of the outcome of the Doha Round. Finally, it is taking place when once more uncertainties are beginning to sink in as to whether the Doha Round can be successfully concluded by the agreed deadline of end 2006 and more importantly still fulfill the original mandate of Doha.

Please allow us, to pay tribute to the steadfast work done by the African Group in Geneva, and African countries as a group, in the preparations for the Hong Kong WTO Ministerial Conference. African countries can be proud that, despite having sought for the Hong Kong Ministerial Conference to move further in trying to fulfill the Doha mandate and address many of the outstanding developmental issues, nonetheless African countries showed solidarity and determination in articulating their interests and concerns. It was through that solidarity that some positive outcomes were registered in Hong Kong on a number of issues of importance to Africa. Nonetheless the outcome of the Ministerial Conference fell far short of Africa's expectations in many other aspects, especially on the "development dimensions" of the Doha Round.

As we move to the next stage of these negotiations, it is imperative that African countries regain and refocus the Doha Round once more on development. The Director General of the WTO, in his Report to the General Council on 8 February 2006, as Chair of the Trade Negotiations Committee, underlined that the "only way to make progress across the board in these negotiations is focus on the two main elements we must now develop- numbers and words, texts". While all would agree with the Director General, We at ECA would like to add that in addition, what is needed is the following.

Firstly, while agreeing on numbers in the modalities for agriculture and non-agricultural market access (NAMA) is indeed important, what is even more important for African countries is what those numbers will mean in terms of market access for products of African countries in developed countries; what they will mean in terms of preference erosion; and what they will mean in terms of special and differential treatment (S&D) and policy space needed for them to pursue development goals. Secondly, there is need to once more bring development at the core of these negotiations.

Many acknowledge that no area of the trade negotiations holds greater promise for Africa than the agriculture area and that 63 percent of the income gains by developing countries from the Doha Round will come from agriculture and 93 percent of those gains from the agricultural trade liberalization will come from market access. Although, most of these gains will accrue to larger developing countries, like India and Brazil, that have the capacity, African could also benefit, assuming their production and marketing capacities can be enhanced. Similarly, developments in NAMA negotiations could have either positive or negative implications for Africa, depending on the direction these negotiations take. Africa will need to be on guard in order to protect its interests.

In summary, Africa faces formidable challenges as we move to the next phase of the current trade negotiations. This Retreat offers African countries an opportunity to re-evaluate where these countries stand in this "Game Theory" and more importantly whether the spirit of Doha is being progressively eroded, as the negotiations approach their final phase. The Economic Commission for Africa (ECA), in collaboration with other regional and international organizations, stands ready to support Africa in its struggle to be heard and to be an effective partner in the global trading system.

We wish this Retreat all the success.