Photo by: Duane Daws
Africa’s integration into international markets has been largely dictated by the continent’s history of colonialism, having been drawn into the world economy as producers and exporters of primary products, mineral commodity or agricultural commodity, Trade and Industry Minister Dr Rob Davies has told the 4th China Roundtable in Nairobi, Kenya this week.
Speaking at the event, which focused on Africa's perspectives on the future of the trading system, Davies added that colonialism had disadvantaged the African continents, as African countries were importers of finished goods coming from countries that were former colonisers.
"The value chains have not benefited Africa. Africa needs assistance so that it can weather the next wave of the financial crisis. We must create regional value chains. We must create space to slow down the importation of the finished goods and we must be given space as a continent to industrialise”, he asserted.
Kenyan President Uhuru Kenyatta, meanwhile, called for the strengthening of the World Trade Organisation (WTO) to enable it to fulfil its mandate effectively, noting that 4th China Round Table and the upcoming WTO 10th Ministerial conference, also in Nairobi, provided an opportunity to reaffirm the centrality of the WTO in international cooperation.
He added that Africa has prioritised industrialisation and deepening domestic economy, legal, institutional and structural reforms.
“If we are to industrialise, tariff escalation and peak tariffs should be eliminated. African economies producing competitively should not be halted with defensive trade remedies. Standards should not be the next frontier of protectionism,” Kenyatta said.
Davies, meanwhile urged Ministers responsible for Trade of the African, Caribbean and Pacific (ACP) Group of States to resist an attempt of ditching the Doha Development Round, as this would have negative implications for developing countries.
The Department of Trade and Industry said in a statement on Tuesday that the membership of the WTO remained divided over the Doha Development Round, with the bulk of the membership, including South Africa, stating that the mandate of the Doha Round remained valid.
“The principles as well as the work issues under the Doha Development Agenda are important and this agenda has to be completed before anything else can be picked up.
“On the other hand, there are a few members who are of the view that the Doha Round is effectively dead and the work programme can address the outstanding issues but not within the current framework and mandate,” it stated.