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Africa: Trade Issues
Africa: Trade Issues
Date distributed (ymd): 990924
Document reposted by APIC
+++++++++++++++++++++Document Profile+++++++++++++++++++++
Region: Continent-Wide
Issue Areas: +economy/development+
Summary Contents:
This posting contains excerpts from a press release and the
concluding statement from the Africa Trade Network conference
in Accra in early September, with statements opposing new
issues and calling for review of existing agreements in the
World Trade Organization ministerial conference scheduled for
the end of November 1999 in Seattle.
+++++++++++++++++end profile++++++++++++++++++++++++++++++
Marking the international civil society day of action
against the new issues in the WTO in Ghana
Excerpt from Press Release
For more information about this and the statement below
contact:
Third World Network- Africa
P O Box AN 19452
Accra-North, Ghana
Tel: 233 21 302107/310634/306069/301064
fax: 233 21 311687/231688/773857
email: [email protected]
A lively and engaging press conference with about 30
representatives of news organisations in Ghana concluded the
activities undertaken by four Ghanaian civil society
organisations in Ghana to mark the international day of action
against the millennium round in the WTO. The press conference,
which was later broadcast on the nightly news bulletins of the
two main television stations of the country, as well as the
wire of the Ghana News Agency, was preceded earlier in the day
by discussions and exchanges with trade officials and with
Ghana's Minister of Trade and Industry.
These activities were jointly organised by the Third World
Network, Africa; the General Agricultural Workers Union of
Ghana; the Ghana Chapter of the Association of African Women
in Research and Development; and Friends of the Earth-Ghana.
All the organisations are members of the Africa Trade Network.
The hour and half-long meeting with the Minister was a
thoughtful and rigorous exchange of ideas and information over
a wide range of issues and concerns at stake for African and
other developing countries at the forthcoming 3rd Ministerial
Conference of the WTO. The civil society organisations briefed
the minister on the conclusions of the meeting of the Africa
Trade Network held in Accra from 31 August - 3rd September.
The Minister welcomed the civil society initiative for the
discussions, and agreed with the importance of the issues
raised and the positions put forward by the civil society
organisations. He also affirmed Ghana's active commitment to
the positions taken of the key issues of investment by the
African group of countries at the WTO, as well as the group of
77 countries. He underlined the need to address the problems
of lack of capacity of African countries to participate
meaningfully in the negotiations.
In this context, both sides agreed on the usefulness of
continuing these exchanges between the government and civil
society organisations. Copies of number of statements, papers
and publications were given to the Minister and to the trade
officials.
The press conference followed on straight afterwards. In the
joint press statement read on their behalf by Yao Graham
(Third World Network, Africa), the four organisations who
hosted the conference informed the journalists that the
international day of action against the World Trade
Organisation was important for two reasons.
First, the WTO has become the most powerful international
institution, whose rules and decisions determine the economic
activities of enterprises, workers, farmers, women, and
ordinary people in each of the 134 member countries, and
beyond. And yet many ordinary people do not know about these
decisions, let alone have a chance to influence them.
Secondly, the day of action was even more urgent in view of
the possible dangers posed to African and indeed developing
country economies by the forthcoming Ministerial Conference of
the WTO. The Ministerial Conference is the highest
decision-making body of the World Trade Organisation. For the
coming meeting, the advanced industrial countries, notably the
USA, the European Union, Canada, and Japan are seeking to
grant comprehensive new powers to the WTO over issues which
should normally not fall within the ambit of the WTO.
The most critical of these new powers relate to national
policies on investment, government procurement, and
competition. In each of these areas, the advanced industrial
countries areadvancing proposals whose effect will be to prise
open developing country markets for the big companies from the
West at the expense of local and national enterprise from the
developing countries, and of the needs of the people --
workers, farmers, women -- and of the environment.
The statement noted that developing countries, with African
countries in the lead in some cases, have opposed this attempt
not only because these new powers will prevent developing
countries from taking measures which will encourage the growth
of development of their own enterprises and local economy.
Developing countries have also opposed the attempt to
introduce these new items on to the WTO agenda because it will
be at the expense of developing countries who are asking for
the WTO to focus first on improving the existing WTO rules and
secondly to ensure that the developed countries fulfil their
obligations to the developing countries as was agreed in
earlier ministerial conferences.
As an instance of the demand by African countries for the WTO
to review its existing rules which are harming or stand to
harm their economies, the statement cited the proposal put
forward by Kenya has on behalf of the African group at the
WTO, calling for a review of the agreement on intellectual
property to stop the patenting of life, as well as the
appropriation of the common knowledge systems of African
countries by big pharmaceutical companies from the North.
[the statement below was read]
The statement was followed by over an hour of animated
discussion. Most of the journalists who spoke were outraged
with the proposals for new issues and were concerned that the
government is able to defend the country's interests. They
also wanted to know what the government was doing and how. The
members of the ATN who hosted the conference reported on their
meeting with the Minister of Trade and with the officials
earlier in the day.
The discussion recognized out that where the government
officials and trade representatives were aware of the dangers
posed by the new proposed WTO round and desired to take
appropriate action, they still faced immense pressure from the
Northern countries who were prepared to use many means
including development assistance as blackmail to prevent the
developing countries, and especially African, governments from
advancing their own interests.
It was important in this regard that the citizens of the
country are aware of the issues and active in demanding that
their government promote their interests in the negotiations.
The meeting agreed that the journalists had a big role to play
in this regard. They also agreed for more such organized
interactions between civil society organizations and the media
to ensure that the interest of African and other developing
countries are protected in the Seattle Ministerial Conference
and beyond.
AFRICAN CIVIL SOCIETY SAYS NO NEW ROUND;
TURN AROUND EXISTING AGREEMENTS!
Statement of African civil society on
the Third Ministerial Conference of WTO
(World Trade Organization)
[Adopted at meeting of African Trade Network, held in Accra,
Ghana, September 1999. The African Trade Network was formed
in February 1998. The meeting was hosted by the Accra-based
Third World Network-Africa secretariat.]
We, the undersigned members of African civil society
representing trade unions, social movements, womens groups and
other civil society groups, are opposed to any attempt to
expand the powers of the WTO [World Trade Organization]
through a new comprehensive round of trade liberalisation.
Instead, governments should review and rectify the
deficiencies of the system and the WTO regime itself, as part
of the ongoing processes within the WTO. We therefore, call
for a moratorium on new issues or further negotiations that
expand the scope and power of the WTO. In this, we join the
worldwide campaign of international civil society against the
proposed Millennium Round, which could be launched at the
Third Ministerial Conference in November 1999, in Seattle,
USA.
The Uruguay Round Agreements and the establishment of the WTO
were proclaimed as means of enhancing the creation of global
wealth and prosperity and promoting the well-being of all
people in all member states. In reality however, in the past
five years the WTO regime has contributed to the concentration
of wealth in the hands of the rich few; increasing poverty and
indebtedness for the majority of the world's population; and
unsustainable patterns of production and consumption. The
Uruguay Round Agreements have functioned principally to prise
open markets for the benefit of transnational corporations at
the expense of national economies; workers, farmers, women and
other groups in the developing world; and the environment. In
addition, the WTO system, rules and procedures are
undemocratic, untransparent and non-accountable and have
operated to marginalise the majority of the world's people.
All this has taken place in the context of increasing global
economic instability, the collapse of national economies,
increasing inequity both between and within nations and
increasing environmental and social degradation, as a result
of the acceleration of the process of globalisation. Those
governments that dominate the WTO, and that together with the
transnational corporations have benefited from the WTO system,
have refused to recognise and address these problems. Instead,
they are pushing for further liberalisation through the
introduction of new issues for adoption in the WTO. This will
lead to the exacerbation of the crisis associated with the
process of globalisation and the WTO.
NO TO NEW ISSUES
We oppose the introduction of the proposed new issues in the
WTO, such as investment, competition policy and government
procurement. The present Working Groups to study these issues
should continue their work, or be closed down. They must not
be 'upgraded' into negotiating groups for new agreements. We
are also opposed to a new round of industrial tariff
reductions.
We commit ourselves to campaign to reject any such proposals.
We believe that proposals by EU, Japan and others to
negotiate an Investment Agreement are attempts to transfer the
utterly discredited MAI from the OECD to the WTO. This should
be firmly resisted and rejected. We also believe that
government procurement decisions (especially giving preference
to local firms) are sovereign rights of our African countries
and should not be brought into the WTO. Further, competition
policy and law should be domestic issues and not be subjected
to WTO disciplines.
On proposals to pressure countries to further cut industrial
tariffs, we wish to state that African countries have already
drastically reduced their tariffs (especially under structural
adjustment programmes) and this has led to closure of local
enterprises and de-industralisation. The WTO should not be
used to lock in and further reduce industrial tariffs in
Africa and the South. We thus reject another round of
industrial tariff cuts. Instead the North should cut its
tariff peaks in products exported by the South.
TURNAROUND EXISTING AGREEMENTS
We call for a moratorium on new issues and further
negotiations that expand the scope and power of the WTO.
During the moratorium, there should be a comprehensive and
in-depth review and assessment of the impacts of existing
agreements. Effective steps must be taken to change the
inherent imbalances and inequities of the WTO system and in
the existing agreements. We call for particular action in the
following areas:
1. SPECIAL AND DIFFERENTIAL RIGHTS
Special and differential rights are principles, which are
firmly established within GATT, in order to correct the
imbalances of the system, which work against developing
countries. There have been increasing pressures since the
Uruguay Round to limit the scope and significance of these
rights. These rights must be reasserted as existing rights,
which are necessary for the fair and equitable operation of
the multilateral trading system. They are not 'favours'
granted to the developing countries. Developing countries must
see these rights as necessary to develop their capacities and
to promote the interests of their people within the
multilateral trading system. Therefore, we call on developing
countries, particularly the African countries, to defend,
exercise and expand the scope of these rights, in accordance
with their own development needs and aims.
2. AGREEMENT ON TRADE RELATED ASPECTS OF
INTELLECTUAL PROPERTY
RIGHTS (TRIPS)
Article 27.3(b) of the TRIPS Agreement should be reformulated
to exclude the patenting of life forms; as follows: 'Members
must exclude from patentability all living organisms including
plants, animals, microorganisms and parts thereof, and any
processes making use thereof, and relating thereto'.
In this regard, we support the position as expressed in the
African Group paper to the WTO General Council, submitted by
Kenya on behalf of the Group. We express full support for the
Joint NGO Statement of Support for the Africa Group Proposals
on Review of the TRIPS Agreement (Article 27.3(b)). We
therefore, call on African political leaders and diplomats in
each country to stand firm in their position and to further
develop this position with concrete proposals to prohibit the
patenting of life forms, and to ensure the protection of
traditional knowledge and the rights of local communities over
biological resources
3. AGREEMENT ON AGRICULTURE
In African countries, as in most other developing countries,
small women farmers form a major part of the population. Their
livelihoods and products (especially food) are the main basis
of Third World economies. These are threatened by agriculture
liberalisation under the Agriculture Agreement. In developing
countries, food production for domestic consumption and the
measures and policies for the protection of small farmers
should be exempted from the Agriculture Agreement's
disciplines on import liberalisation, domestic support and
subsidies.
4. AGREEMENT ON TRADE RELATED INVESTMENT MEASURES (TRIMS)
In the review of the TRIMS Agreement, we call for an amendment
to allow developing countries the right to have 'local
content' policy (i.e., to require firms or projects to use a
certain minimum amount of local materials) so as to help
development of domestic economic activity and conserve scarce
foreign exchange. In addition, developing countries must be
allowed to take measures for balancing the flow of foreign
exchange. Moreover, no new investment measures should be added
to the list in the TRIMS Agreement. Nor should there be
expansion of the scope of the TRIMS Agreement to cover
investment and competition policy.
5. REFORMS OF THE WTO SYSTEM
For most developing-country members of WTO and for the public
and legislatures in all member countries there is lack of
transparency and democracy in the WTO system and processes --
its rule making, negotiations, monitoring and
dispute-settlement. We urge that the Seattle Ministerial
Conference take decisions to make the WTO system more open,
transparent, democratic and participatory to developing
countries, legislatures and civil society. These include but
are not limited, to the following:
- Consultations, discussion, negotiations and decision-making
in WTO have to be truly transparent, open, participatory and
democratic.
- Any proposals on rules or for new agreements should be made
known in their draft form to the public at least 6 months
before decisions are taken so that civil society in each
country can study them and influence their legislatures and
governments.
- All WTO members must be allowed to be present and
participate in discussions and negotiations (including in
informal groups and meetings where many key decisions are
made). The practice of small informal groups making decisions
for all Members should be discontinued.
- Legislatures should be constantly informed of proposals and
developments at WTO and have the right to make policy choices
regarding proposals in WTO.
- Civil society should be given genuine opportunities to know
about and to express their views, and participate and
influence the outcome of policies.
We call on our governments in Africa and other Third World
countries to reject the new issues being proposed so that our
national sovereignty and development options can be protected,
and to demand for a review and reform of the WTO rules and
system. We pledge to work with NGOs in other Third World
countries in our common struggle on these issues.
We also appeal to our civil society colleagues in the
developed countries, on the basis of our common humanity and
in the interest of our common planetary home, to join with us
in solidarity and campaign against the proposal for new
issues, and for the review and reform of the WTO system and
agreements.
Signatories include:
TANGO, Gambia; International South Group Network (ISGN),
Zimbabwe; ENDA Tiers Monde, Senegal; Alternative Information
and Development Centre (AIDC), S. Africa; Motheho Integrity
Consultants, South Africa; Development Innovations & Networks
(IRED), Zimbabwe; Inter Press Service, Africa; MWENGO,
Zimbabwe; Environmental Rights Action, Nigeria; CCA-ONG,
Mali; African Development Education Network (ADEN), Senegal;
Organisation of Africa Trade Union Unity (OATUU); Friends of
the Earth, Ghana; Association of Africa Women for Research
and Development (AAWORD), Ghana; Third World Network (TWN);
Integrated Social Development Centre, (ISODEC) Ghana;
ActionAid, Gambia; Oxfam; General Agricultural Workers Union
(GAWU), Ghana; Africa Trade Network
Those who would like to sign on to it should write to "Africa
Trade Network"<[email protected]>
Distributed by: Motheho Integrity Trade Consultants P.O.Box
3977 Johannesburg, 2000 [email protected]
This material is being reposted for wider distribution by the
Africa Policy Information Center (APIC). APIC's primary
objective is to widen the policy debate in the United States
around African issues and the U.S. role in Africa, by
concentrating on providing accessible policy-relevant
information and analysis usable by a wide range of groups and
individuals.
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