TRADE RELATED CAPACITY

BULDING FOR ENHNCED

AFRICAN PARTICIPATION IN
THE
GLOBAL
ECONOMY

Main concern:
Capacity building for effective participation in the
multilateral trading System.
Supply-side constraints of African countries as
trading nations.
Efforts got initiated by The WTO, UNCTAD, and
the International Trade Centre (ITC),referred as
three Geneva trade agencies.
First wave response :
Launched Joint Integrated Technical Assistance
Programme for Selected Least-Developed and
Other African Countries.

3/7/16 | JBIMS | M.Sc. Finance

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Contd..
Launched the Integrated framework for technicalRelated Assistance, & build support for leastdeveloped countries in their trade and traderelated activities
To help African countries prepare for future WTO
negotiation emerged.
Second-wave response :
Main concern with an integral part of the overall
development and poverty reduction effort.
Focused on assisting the countries concerned to
identify and prioritize structural supply-side
constraints.
Renewed effort by major international financial
3/7/16 | JBIMS | M.Sc. Finance
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institutions such as the World Bank and the IMF.

The First Wave: The JITAP,

the IF,
and Assistance with
Preparations for
Negotiations
Future
The JITAP:
The JITAP was established as a collaborative
venture by the three Geneva trade agencies in
May 1996.
A vehicle for utilizing agencies expertise by
adopting a systematic approach and a framework
for donor and interagency coordination.
Initially 8 countries selected: Benin, Burkina Faso,
CtedIvoire, Ghana, Kenya, Tanzania, Tunisia, and
Uganda
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Contd..
The IF
Constitutes Geneva trio, along with world bank,
the IMF, and the UNDP
Established in October 1997 by WTO.
Least Developed countries have different set of
Initial condition , so specific trade-related
capacity-building requirements.
Each participating country required to carry out a
needs assessment for trade-related technical
assistance.

3/7/16 | JBIMS | M.Sc. Finance

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Positive Agenda Initiatives

Negotiation on sensitive issues like textiles and
clothing, labor standards ,investment, and
competition policy were taken into consider.
African LDC representatives had little input in
negotiation on IT products and number of
pharmaceutical products to eliminate terrifs.
Main objective was to setup research and analysis
to develop positive agenda for future WTO
negotiation.

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Assessment
Efforts by multi-trade agencies has resulted
greater sensitization in African countries.
The JITAP and the IF, however, suffered from
serious deficiencies.
The JITAP was limited to just a handful of
countries and was not able to deliver projects for
which it is aim for.
In IF , issue related to regional trade policy were
ignored.
By the time of the Seattle ministerial conference
in late 1999,some African countries shows
positive response in negotiation.
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The Second Wave: Mainstreaming Trade

Reviews on functioning of JITAP and the IF were

undertaken by development communities.
mainstream trade as an integral part of the
overall national development and poverty
reduction effort.
It lays considerable stress on ensuring that trade
policy , trade-related technical assistance ,and
capacity-building.

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Next Steps: JITAP II and

IF II
Emphasis on building a network of trainers
through the involvement of local universities and
business schools.
Re-modeled JITAP that would be extended to an
additional 10 to 15 African countries.
IF-II approach would involve formulating countryspecific trade programs as part of the broader
poverty reduction strategies.
To seek donor support for and voluntary
contributions to an IF Trust Fund (IFTF).

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Assessment
Reviews of JITAP and the IF could potentially
bridge the major gaps evident in the first-wave
response.
JITAP II: The effort is be made to strengthen the
role of ministries of trade as the focal point for
trade policy is to be welcomed.
IF II: main- streaming trade will give greater
visibility to the linkages between trade and all
other related policy areas, including health,
education, and general social conditions.

3/7/16 | JBIMS | M.Sc. Finance

Slide No 9