Accra — African trade negotiators and development experts gathered in Accra, Ghana in November to discuss the future negotiations in the World Trade Organization (WTO). At the conclusion of that meeting, which was organized by the United Nations Economic Commission for Africa, the participants agreed on a "Road Map for Future Negotiations."

Conclusions of the Meeting

I. Introduction

1. The Economic Commission for Africa (ECA), in partnership with the African Union (AU) and the Government of Ghana organized a Post-Cancun Expert Group Meeting for African Trade Negotiators and Officials on 28 - 29 November 2003, in Accra, Ghana. This meeting was organized in collaboration with a number of international and regional organizations (UNCTAD, UNDP, WTO, World Bank, and ILEAP).

2. The purpose of the two-day meeting was to bring together African trade negotiators and officials, as well as trade experts from selected institutions around the world, in order to: conduct a comprehensive evaluation of the implications of the Cancun WTO meeting for African countries; assist countries in the region to develop and refine their strategies for further negotiations; and identify immediate research needs of African countries in the context of these negotiations.

3. In his opening remarks, Ambassador Meetoo, Coordinator of the African WTO Geneva Group, provided the state of play of negotiations in Geneva. He underscored the willingness of African countries in Geneva to engage in the post-Cancun consultations and negotiations. He informed the meeting that African countries had shown significant flexibility to try and restart the negotiations of the Doha agenda.

4. Ambassador Kalinde, representing the Chairperson of the African Union Commission, pointed out that the quest for full participation in the international trading system was enshrined in the Constitutive Act of the AU. She pointed out that since the collapse of the Cancun talks, the Africa Geneva Group has been holding exhaustive consultations on how the Doha Development Agenda can be rescued. Within this, a strong commitment remains to keep the AU/ACP/LDC alliance that was created at Doha.

5. In his opening remarks, the Executive Secretary of ECA, Mr. K.Y. Amoako, stated that the stalled WTO talks was bad news for Africa, as exemplified by 2001 figures showing that 40 percent of sub-Saharan Africa's GDP came from export of goods and services. He noted that although the continent stood to gain much from international trade, the gains are not automatic, and given the small and fragmented nature of African economies, regional integration could provide a key stepping stone towards international trade. He also underscored the importance of domestic policies that can deliver stable macroeconomic environment as important for facilitating growth.

6. On behalf of H.E. President John Kufour of the Republic of Ghana, the Minister of Trade and Industry, Honourable Alan Kyerematen, opened the meeting with a statement emphasizing Ghana's commitment to the multilateral trading system (MTS). He identified some obstacles hindering Africa's full participation in the MTS, including the low level of human capital development, inadequate foreign direct investment, lack of physical infrastructure and technology, and the crippling debt overhang. The Minister noted the desire of WTO members to restart talks on the DDA and urged experts to consider all available options, which will move the negotiations forward.

7. In their deliberations the experts underscored the importance of urgently reviving the Cancun talks. Furthermore, experts pointed out that African countries should continue to engage in the Doha round of talks in a positive and imaginative manner, in a spirit of openness and cooperation in order to advance their interests.

II. Trade as an Engine for Growth

8. The experts reaffirmed the importance of trade as an engine for growth, development and poverty alleviation. African countries have, therefore, come to appreciate the role trade can play in promoting development. Some studies have shown the importance of strengthening trade policies and diversification of African economies as well as improving their competitiveness. However, there are no built in guarantees that international trade will confer equal benefits to all participants. In order to maximize potential gains from trade liberalization, it is important for African countries to mainstream trade issues in national policies and programmes. In this respect, the meeting called for the integrated Framework (IF) to be extended to all Least Developed Countries (LDCs) as soon as possible.

9. Furthermore, the international trading environment still remains asymmetric. While some African countries have by and large extensively opened up their markets through reforms and liberalization, OECD countries still maintain high barriers in sectors where developing countries have a comparative advantage. The multilateral trading system needs to be more open, fair and transparent.

III. Moving Beyond the Impasse

10. The experts reviewed the key promises made to developing countries at Doha, including the affirmation that TRIPS Agreement can and should be interpreted in a manner supportive of WTO Members rights to protect public health and, in particular to promote access to medicines for all; substantial improvements in market access, reductions of, with a view to phasing out, all forms of export subsidies as well as substantial reductions in trade distorting domestic support; implementation issues and concerns would be resolved as a matter of priority; tariff peaks and tariff escalations will be dealt with; and there would be fast-track accession for LDCs.

11. Experts noted that by the time the talks reached Cancun, no significant progress had been made on resolving some key development promises. Deadlines for reaching agreement on Special and Differential Treatment, TRIPS and Public Health and Modalities on Agriculture had all been missed. Although the 30 of August Decision on TRIPS and Public Health was welcomed, the process of negotiations of the Doha agenda was already fragile in the approach to Cancun, with a lack of consensus on the major issues. Overloading the Cancun agenda, coupled with the lack of political will, especially on the part of the developed countries, put extra pressure on an already strained negotiating process.

12. Although there have been some developments in the talks since Cancun, the impasse continues on major negotiations. African trade ministers, negotiators and officials continue to be engaged tirelessly to find a way through the impasse, while safeguarding the continent's interests.

IV. Agriculture

13. The experts underscored the critical importance of Agriculture to African economies, especially as regards to poverty reduction and achieving the Millennium Development Goals (MDGs). The difficulties encountered in reaching agreement on Modalities for Agricultural Negotiations prior to Cancun and at Cancun reflect the importance of this sector to a broad range of members of the WTO and to the livelihoods of millions of people in the world. The experts insisted on the need to address simultaneously all the three pillars of the agriculture, namely market access, domestic support, and export competition as a priority. For Africa, agriculture remains the core issue in the current round of multilateral trade negotiations, and willingness by the international community to address agricultural issues is a litmus test of their commitment to Africa's development.

14. The experts noted that the Derbez Text, along with other inputs, could serve as a basis for restarting the negotiations on agriculture. However, they reiterated the need to redress the imbalance in the Annex on Agriculture, in order to achieve the level of ambition desired by African countries. This is particularly true as regards the formula to be applied for tariff reductions; substantive reduction in trade-distorting agricultural support measures; modalities for providing flexibility to developing countries to deal with strategic products and food security and other developmental aspects of agriculture; and modalities for tackling the issue of special and differential treatment and erosion of preferences. Experts also emphasized the urgent need to establish a framework for agricultural negotiation as an essential element in the process to move towards defining modalities for the negotiations without delay.

15. Experts agreed that some proposals that emerged from Cancun on agriculture are a viable means of moving the talks on this area forward. The meeting also focused on procedural and substantive matters, which need to be considered in order to move the negotiations forward. The meeting discussed strategies, which African countries could pursue in the negotiations on agriculture. Suggestions made included that African countries adopt a flexible and realistic strategy and tactical approach to restart the negotiations. The proposed strategy would nonetheless need to emphasize the need to include Africa's interests in the framework for further reforms. Furthermore, such a framework would need to address, in a balanced manner, all the three pillars in the negotiations, i.e. market access, domestic support, and export competition. Experts expressed the need for African countries to continue to build strong strategic alliances with other developing countries.

V. Cotton Sectoral Initiative

16. Experts reviewed the Cotton Sectoral Initiative and reiterated the importance of this sector for many African countries, in terms of employment, GDP and export earnings. They considered the resolution of the cotton issue as one of the critical aspects of the current round of multilateral trade negotiations.

17. Experts further reiterated the need to keep the cotton initiative as a separate stand-alone issue rather than being subsumed in the talks on agriculture. They called for paragraph 27 of the Derbez Text to be reviewed to take into account views expressed by African countries and proposals submitted by these countries prior to Cancun, at Cancun and the post-Cancun consultations.

18. Experts also supported the demand by cotton producing countries for the elaboration of a possible compensatory mechanism to cushion against the negative impact of subsidies on their economies. Experts also explored options for implementing such a compensatory scheme and called for further research to inform on the best way to proceed.

VI. Non-Agricultural Market Access.

19. The meeting recalled the positions of African countries on NAMA, as explicitly stated in the Mauritius Declaration and associated documents as well as in consolidated position taken by the ACP/AU/LDC countries in Cancun. The meeting also observed that consultations in Geneva had not progressed beyond the scope where Africa's positions on NAMA needed to be altered significantly. Accordingly, while African countries were urged to remain engaged, the general view was that African countries should continue to monitor the negotiations and evaluate the proposals of other WTO members.

20. The experts noted that the proposals on NAMA as reflected in Annex B of the Derbez Text did not reflect fully concerns of African countries raised prior to Cancun and at Cancun. On "core modalities", the meeting reiterated that the "non-linear" formula proposed for tariff reduction would create serious problems for many African countries, particularly as regards its impacts on Africa's industries and government revenues. Suggestions were made that African countries could consider various options regarding formula approaches for tariff reductions, including the "linear formula" or a "blended formula".

21. With respect to the sectoral approach proposed in the NAMA negotiations, the experts noted that sectors identified in Annex B as of export interest to developing countries may also be of interest to developed countries. Accordingly, there was no guarantee that this would benefit only developing countries. Consequently, it was proposed that paragraph 6 should be removed from the Derbez Text. Should this note be the case, the meeting was of the view that the scope and choice of sectors under this approach should not be mandatory and should take into account the sensitive sectors of African economies.

22. Experts emphasized the role of tariff policy as an instrument of industrial policy in many African countries and therefore the need for further trade reforms to take this important aspect into consideration.

23. As regards, levels of binding by countries, the meeting noted the proposals contained the Annex to the Derbez Text and emphasized that any agreed binding approach should provide sufficient "policy flexibility" for African countries to pursue industrial policy. Moreover, developing countries could seek a "credit" for autonomous liberalization undertaken by them in the past. Many African countries have undertaken tariff reductions in the past under Structural Adjustment Programmes (SAPs). In this regard, experts recommended that African countries should be allowed to bind tariffs at rates and levels commensurate with their levels of development.

24. The meeting also discussed the implications of tariff reductions on preferences for developing countries currently enjoying preferential treatment in markets of developed countries. It was noted that further tariff cuts should accordingly take into account the erosion of preferences, which could result from implementation of such tariff reductions. This aspect should be taken into account in any agreement on modalities.

25. The meeting also discussed the need to address non-tariff barriers and other market entry barriers in the negotiations on NAMA.

VII. Singapore Issues

26. The meeting was briefed on the evolution of the discussions on the Singapore Issues, prior to Cancun, at Cancun and after Cancun. It was noted that various suggestions on dealing with the Singapore Issues had emerged during the consultations in Geneva. The proposals included suggestions to "unbundle" the Singapore Issues, and/or maintaining these issues as part of a "Single undertaking". Suggestions for unbundling the Singapore Issues included the 1+3 approach, whereby one of the issues (such as trade facilitation) would be tabled to agree on modalities for negotiations and dropping the other three (trade and investment, trade and competition policy and government procurement); and the 2+2 approach, where two issues would be tabled to agree on modalities (trade facilitation and government procurement) and the other two are either referred to the Working Groups for further work and/or dropped from the WTO agenda.

27. During the discussions, concerns were expressed about the dangers of creating a two-tier WTO organization, with the proposal for an opt-in and opt-out approach for dealing with the Singapore Issues would inevitably imply. Participants expressed the need for coherence and consistency of Africa's positions on the Singapore Issues in the framework of the WTO and Economic Partnership Agreements (EPAS) of the European Union. It was noted that while African countries are resisting agreeing on multilateral frameworks on these issues in the WTO, they are being pressurized to agree to bilateral agreements in the framework of the EPA and other bilateral trade negotiations.

28. The meeting held the general opinion that African countries should monitor what proponents will be tabling at the 15 December 2003 WTO General Council Meeting and prepare the appropriate response, while remaining consistent with their longstanding position.

29. The Meeting called on the Economic Commission for Africa (ECA) and the African Union (AU), in collaboration with other relevant organizations, to undertake appropriate studies on these issues in order to facilitate the adoption of informed positions by African countries as they engage their trading partners.

VIII. Development Issues

30. African countries have always urged for development issues to be made an integral part of the multilateral trading system to ensure an equitable multilateral trading system. The meeting reviewed the Derbez Text regarding development issues and expressed concern that the Text did not reflect the positions taken by African countries prior to Cancun at Cancun. This was particularly true of the observations made by African countries that on Special and Differential Treatment (SandD) for example, the items which were being proposed for "early harvest" were neither of economic value nor did they provide policy space for African countries in the conduct of their trade policy. The meeting called on the need to urgently include development issues in the current consultations taking place in Geneva and to ensure that decisions taken at the 15 of December 2003 WTO General Council Meeting should address these issues of importance to Africa. In this regard, the meeting recommended the replacement of paragraph 12 of the Derbex Text with the African Group proposal, WT/MIN(03)/W/13 dated 11 September 2003.

31. The meeting noted that not much progress has been made on implementation-related issues and concerns in the post-Cancun consultations process. The meeting urged for momentum to be injected in trying to effectively deal with these issues, which are designed to create a level playing field and for the multilateral trading system to yield benefits to its most disadvantaged members. Dealing with implementation-related issues and concerns and special and differential treatment is fundamental for the effective integration of African countries in the global trading system. In this regard, the Meeting emphasized the need to find modalities for resolving the impasse in the negotiations on these issues.

XI. The Future strategy

32. The meeting noted that by the time of the Cancun WTO Ministerial Conference, African countries had achieved significant progress in articulating common negotiating objectives and strategies and in building strategic alliances with other relevant groups. While the continent played only a peripheral role in the Singapore talks, by the time of the Cancun talks, the continent had managed to improve its participation in the WTO Ministerial Conferences and its preparatory processes. Nonetheless, the capacity of African countries to effectively engage their partners in trade negotiations continues to be hampered by the weak technical and financial capacities. Hence the importance for African countries to build trade and trade-related capacities needed for proactive approaches to trade negotiations.

33. The negotiating strategies need to be developed at the national, sub-regional and continental levels. The process of articulating such a strategies should involve all stakeholders, including civil society organizations, parliamentarians, and the private sector. The strategies should combine both, political and diplomatic dimensions; and technical aspects and supported by informed research. In this connection, the experts called on the Economic Commission for Africa (ECA) and the African Union (AU) and other partners to undertake research, which will strengthen their negotiating capacities.

34. As regards LDCs, the meeting called for the granting of bound duty-free, quota-free market access by developed countries for products originating from these countries. Developing countries were also encouraged to grant similar treatment to LDCs products on an autonomous basis.