The WTO has launched a new report which examines ways of increasing Africa’s trading capacities. The publication is titled ‘Strengthening Africa’s capacity to trade’. The report explores how African countries can leverage the multilateral trading system to promote economic transformation.
It also examines ways by which African countries can take greater advantage of international markets to enhance their trade. The WTO launched the report on Day 1 of ‘the Aid for Trade Stocktaking Event’. This event is taking place online from March 23-25, 2021.
Major highlights of the report
The report states that African economies have been hit hard by the downturn in global trade triggered by the COVID-19 pandemic. According to the report, the social distancing measures affected the region due to its high informality. It further reveals that the downturn in economic activity will cost the region at least US$ 115 billion in output losses in 2020.
Also, the report highlights that the African economies lose at least US$ 50 billion annually to illicit financial flows. It underscores that not only does corruption discourage public investment, but also diminishes its quality, and lowers productivity. The report informs that corruption leads to inferior infrastructure and services, to the ultimate cost of taxpayers.
Director-General Ngozi Okonjo-Iweala supervised the launch of the new publication. She stated that the publication is an excellent starting point for efforts to ensure that Africa’s economic response to COVID-19 makes full use of the potential of trade. This, according to her, will help drive recovery, growth, and job creation.
“Aid for Trade has an important role to play in enabling African countries to achieve strong and sustained recoveries that leave no one behind”.
Usefulness of the new publication to African countries
The report states that Sub-Saharan Africa has been hit hard by the downturn in trade and economic activity caused by the COVID-19 crisis. It, however, calls on the WTO to revive the progress made before the crisis and help minimize its effects. The publication encourages the WTO to continue its technical assistance and capacity-building activities for developing and least-developed countries. The report also highlightes the need for a WTO-led Aid for Trade initiative and support for implementing the Trade Facilitation Agreement.
Also, the report highlights the WTO’s deep involvement in the region. It notes that 16.0 percent of all technical assistance activities focused on African countries, the highest of any region. The technical support covers topics such as trade negotiation skills, e-tourism, and the General Agreement on Trade in Services. It also covers the Agreement on the Application of Sanitary and Phytosanitary Measures and the Technical Barriers to Trade Agreement. The WTO also provides support in fisheries subsidies and trade policy courses.
Some capacity-building projects
Meanwhile, the report also showcases capacity-building projects led by the Standards and Trade Development Facility to facilitate safe and inclusive trade. The publication also notes that these projects help African economies meet their trade and development objectives.
It further highlights the important role policymaking can play in government procurement, trade in services, technology transfer for cotton-by products, and intellectual property. This, according to the WTO, will create an environment conducive to trade development. The report adds that it will also help African countries further integrate into the global trading system.
This report also outlines collaborative efforts undertaken in 2019 by the WTO with the African Union to increase the continent’s industrial and manufacturing capacity. The publication highlights that Forty-four out of the 55 member states of the African Union are members of the WTO.
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