The Doha Round of trade negotiations and Economic Partnership Agreements (EPA) are taking place at a time when there is a broad recognition of the contribution that trade can make to the overall economic development of Africa and other developing countries. Over the years, the importance of South-South trade has increased steadily and substantially to account for some 40 per cent of total developing country exports and some 13 per cent of total world exports. This is mainly because of the increased role of regional integration initiatives which have enabled developing countries to claim some modest stake in the international trade. However in the case of Africa, the share in total south-south exports of merchandise goods has declined from 5.4% in 1970 to 2.3% in 2003.

In addition, Africa’s merchandise exports stood at US$ 174 billion in 2003, accounting for a modest share of 2.3 per cent of world exports. This share represented a decline from 3.1 per cent in 1990 as a result of a slower pace of export growth during the same period. On the other hand, Africa’s share in the world’s commercial services exports declined from 2.5 per cent in 1990 to 2.1 percent in 2003, while in other developing countries the sector has become a driving force of economic growth and development.

For Africa, trade in services, represents an important avenue for diversification away from commodity-dependence. On the regional integration initiative, it is important to note that despite having preferential market access into the EU market under the four successive Lome Conventions, the results have been disappointing for African countries.  For instance, in the first two decades of preferential access under the Lome accords, the exports of the ACP countries to the EU market fell from 7.7% in 1980 to 2.7% in 2000. This was partly due to their dependence on primary commodities whose share in world trade continues to decline. This clearly demonstrates that the concessions that were extended to the ACP countries did not offset this structural imbalance associated with the Lome Protocols. It is therefore our hope that the EPA initiative is a positive reaction to the poor results of these protocols and the new approach by the EU and the ACP countries is aimed at addressing both market access and development concerns of these countries.

The greatest challenge facing the African Continent today is its continued marginalization in the international trade. The expansion of many developing countries’ trade and economic growth contrasts sharply with difficulties faced by African countries in integrating themselves meaningfully into the world of trade in goods and services and finally into the multilateral trading system in general. In 2004 for example, Africa recorded a real annual Gross Domestic Product growth rate of 4.6 per cent which is viewed as the highest almost in a decade, but fell short of the 7 per cent per annum growth rate that is necessary for attaining the Millennium Development Goals.

In this respect, the successful conclusion of the Doha negotiations with development content has the potential to substantially contribute to reversing this vicious trend of continued marginalization of the continent in international trade. The global trade reform agenda being pursued under the Doha Development Agenda must therefore address the persistent imbalances within the multilateral trading system by taking appropriate policy measures necessary to enable the developing countries to realize their long standing hope of living in dignity and peace.

But how can we achieve this noble objective as a region? The negotiations should recognize the need for these countries to assume obligations that are proportional and commensurate with their levels of economic development. Policy space embodied in special and differential provisions should be integrated in all elements of the negotiations to enable the continent and other poor countries achieve their legitimate development goals.

There is need to ensure that the outcome of the negotiations seeks to preserve the existing market access of our products in addition to securing better and additional market access to products of export interest to developing countries through elimination of market entry barriers to allow diversification and value addition to primary products of these countries. It is also important to realize that removal of structural distortions in agricultural markets is necessary to create a level playing field for all. For instance, the removal of trade distorting subsidies affecting commodities like cotton from Africa will be a clear demonstration of the ability of the Multilateral Trading System to respond positively to the genuine cry of the many poor African farmers who live on less than one dollar a day.

We must remain focused in three most important things if we are to make rapid progress. First, we need to maintain pressure to the US to remove agriculture subsidies because this is an impediment to our industrial development in labor-intensive areas as in cotton and employment creating farm activities. Secondly, the EU should equally lower tariff and non-tariff barriers to enable our products increased access into the EU market even as the reforms are being implemented. Thirdly, our brothers, the more advanced developing countries such as China, India, Brazil, South Africa, and Egypt, should equally open up their markets for our products. On our part we must also embrace in return the spirit of reforms and initiate actions that would demonstrate that we are also participants in the trade liberalization process.

The EPA represents an enormous challenge to African countries since they will have to completely liberalize their trade with the EU and carry out a range of institutional and regulatory reforms. There is need to identify the pertinent key trade issues and proposal necessary to advance the Doha Development Agenda forward without losing focus of the development content. In addition we need to reflect further on how we can enhance the regional integration initiatives within Africa in pursuance of the Lagos Plan of Action which envisages the attainment of a Free Trade Area and Customs Union through integration of national economies and creating a large internal market that can achieve production efficiency levels comparable to those of industrialized countries.

To realize rapid and sustainable development, African countries should put transparent, rules-based and investor friendly regulatory systems in place in order to attract inflow of foreign direct investment as one way of contributing to the development of the continent. The continent should address the removal of the supply side constraints and endeavor to put in place an infrastructure that supports competitive production. Each EPA negotiating region in Africa therefore needs to adopt such a targeted approach in order to be able to utilize the existing as well as preferential market access being negotiated.

The whole of Africa is waiting in anticipation for deliberations that will yield positive results in terms of bringing tangible gains and prosperity capable of lifting millions of Africans from the poverty trap. Africa need not be disappointed!