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Promoting South-South Civil Society Cooperation

Issue No. 12, 2006
A quarterly E-Newsletter
Published by CUTS-Africa Resource Centre, Lusaka, Zambia

CONTENTS

• EDITOR’S NOTE
  • Africa’s Integration Threatened  
    
• ACTIVITY REPORT
• Linkages between Trade Development & Poverty Reduction
• Zambian Negotiating Capacity Inadequate
  
• NEWS BRIEFS
  • SADC in Trade Hurdles
  • China Eyes WTO Talks
  • Africa Warns EU on Trade Talks
• EVENTS AND ANNOUNCEMENTS
• Trade and Market Linkages for Small Scale Producers
  
• PUBLICATIONS
• Toolkit on Linkages between Trade, Development and Poverty Reduction (TDP)
  

EDITOR’S NOTE

Africa’s Integration Threatened
The proposed trade arrangements between the African, Caribbean and Pacific (ACP) countries and the European Union (EU) under the Economic Partnership Agreements (EPAs) have set a different path for Africa’s regional integration efforts. Economic integration in Africa has proven to be a challenging task due to many factors, such as variations in macro-economic indicators, linkages with the European markets in varying monetary policies and levels of economic and political development.

As a result of these internal factors, the proportion of trade has lowered between sub-regional groupings and the region as a whole. The achievements attained so far may suffer set backs as a consequence of the proposed new trade arrangements between the EU and the ACP, which have already sub-divided Africa’s economic regions into smaller configurations. These smaller groups would be unable to effectively negotiate with the EU due to poor financial position, low human capital and weak institutional structures.

While EPA’s are expected to serve as a key tool for regional integration, the opposite will occur if the current scenario remains unchanged.
 

Editor

ACTIVITY REPORT

Linkages between Trade Development and Poverty Reduction
CUTS ARC, in collaboration with Organisation Development and Community Management Trust (ODCMT) hosted a national consultative dialogue on the Linkages between Trade, Development and Poverty Reduction (TDP), in Lusaka, Zambia, on September 19, 2006. The purpose of the dialogue was to discuss the findings of the two case studies: textiles and clothing and agro processing sector on their performance before and after the economic liberalisation in Zambia.

For more details on the event, please visit:
http://www.cuts-international.org/cuts-arc-events.htm#DialogueTDP

Zambian Negotiating Capacity Inadequate
The proposed EPA between the EU and the Eastern and Southern African (ESA) configuration of states is expected to be a key element for increased trade between the two regions. Zambia, being part of the EPA negotiations under the ESA region, is expected to benefit from increased exports and welfare due to low import prices. Zambia is advocating for an export-led growth. However, the proposed trade liberalisation under EPAs has been criticised as not being suitable for poverty reduction in Zambia.

These were some of the reflections of the discussions during a ‘Consultative Workshop on EPA Negotiations’, held in Kitwe, Zambia, on September 11, 2006. The workshop was organised by CUTS ARC, jointly with Civil Society Trade Network of Zambia (CSTNZ).

For more details on this event, please visit:
http://www.cuts-international.org/cuts-arc-events.htm#EPAnegotiation
 

NEWS BRIEFS

SADC in Trade Hurdles
The Southern African Development Community (SADC) – the economic grouping of 14 countries – has been facing a number of challenges, which are restricting its integration process. Among them, domestic factors such as supply-side constraints, poor infrastructure, inadequate human capital, etc are in focus. The unstable exchange rate, has emerged as the biggest potential challenge to trade and cross-border investments in the SADC region, according to the SADC Business Climate Survey, released on August 23, 2006.

(Source: www.busrep.co.za 24.08.06)

China Eyes WTO Talks
China, over years, has gained dominance in the world trade and being a consumers’ goods manufacturer and exporter there is a huge benefit for China to play an active role in the World Trade Organisation (WTO). Following the recent call of the US for China to assume a more active role in reviving the Doha Round trade talks, China has expressed willingness to help push for a resumption of stalled global trade talks and has called upon developed nations to make substantial contributions to that end.

China further expressed its willingness to participate in the talks in a constructive manner along with other nations and to actively push for the resumption of the Doha negotiation process.

(Source: www.citizen.co.zm 29.08.06)

Africa Warns EU on Trade Talks
Trade talks between the EU and the 16-member ESA countries are set to be stormy as ESA countries warned the EU against reneging on its earlier promises to incorporate development. The EU has been accused of focusing the trade component of the Cotonou Agreement. The EU claims that the agreement caters for the development in ESA countries through the European Development Fund (EDF).

The main reason why ESA was negotiating with EU was to boost development strategies and not to allow a treaty that would damage Africa’s shaky economies. The ESA countries would sign an EPA which would be comprehensively pro-development and in its interest.

(Source:  www.bilaterals.org 26.09.06)

EVENTS AND ANNOUNCEMENTS

Trade and Market Linkages for Small Scale Producers
CUTS ARC, in partnership with the Danish Association for International Corporation (MS-Zambia), will hold a two-day training workshop for small-scale farmers and producers in Zambia, at Mansa, in the Luapula Province of Zambia, during November 20-21, 2006.

The objectives of the workshop will be to:
• create a long-term capacity for farmers, support organisations, business associations to make use of the domestic and international market for their products/produce through increased knowledge and networks;
• build an alliance of organisations to lobby and advocate for policies favourable to regional producers;
• address the institutional structures which do not promote the realisation of fair trade at all levels, i.e. national, regional and global level.
• empower farmers and support organisations to advocate for favourable trade agreements/arrangements; and
• establish practical market linkages between institutional buyers, established business chains, trade facilitation institutions and producers/farmers.

(For more details, please contact: cutsarc@zamnet.zm)

PUBLICATIONS

Toolkit on Linkages between Trade, Development and Poverty Reduction (TDP)
CUTS ARC, Lusaka, in association with ODCMT has prepared a campaign toolkit on the Linkages between Trade, Development and Poverty Reduction in 2006. This would serve as an advocacy document exploring and identifying the possible linkages between trade, development and poverty reduction by compiling well-researched work on Zambia. The publication will explain and share Zambia’s experiences in dealing with trade, and poverty reduction, and discuss the potential of trade to reduce poverty in Zambia besides exploring as to what extent do the linkages already exist, and are bearing fruit and how can the linkages be strengthened.

The toolkit will be used by CUTS ARC and ODCMT and partner organisations in Zambia to convey advocacy messages across on the impact of economic liberalisation on Zambia’s economy and poverty reduction in general, with a specific focus on the agro-processing and textile industry.

For more details contact: cutsarc@zamnet.zm
 

Contact Us:

Africa Resource Centre
Suite 4.11, Main Post Office Building,
Cairo Road, P.O. Box 37113, Lusaka, Zambia
Ph: (00) 260-1-224992
Email: cutsarc@zamnet.zm
lusaka@cuts.org

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