1. China to invest $9 billion into DRCongo's infrastructure
2. India to lift import duties on African goods
3. Africa - China trade up by 24% from 1995 to 2007
4. West Africa should seek development from EPAs, not just raw materials exportation
5. Free trade area incorporating COMESA, SADC proposed
6. Effort against illegal ivory trade launched
7. Officials put up trade complications despite liberalised East African trade laws
8. Non-tariff barriers still impede Africa's trade
9. Africans press for Doha cotton concessions on subsidies
February 18, 2008
China to invest $9 billion into DRCongo's infrastructure
China will pump $9 billion into Congo's war-ravaged mines and infrastructure in a newly-signed partnership that could propel the African country's growth into double digits, a government minister said on February 15.
The value given by Planning Minister Olivier Kamitatu for an accord signed on January 28 by China and Democratic Republic of Congo was much higher than the $5 billion price tag originally announced last year in Congo.
"Three billion (dollars) will go towards improving the mines to a point where they can produce. Six billion will be for infrastructure," Kamitatu said.
Under last month's deal, Exim Bank of China pledged financing for major road and rail construction projects in Congo and for the rehabilitation of its strategic mining sector, badly damaged by years of war, corruption and neglect.In return, China's Sinohydro Corp and China Railway Engineering Corp received a 68 percent stake in a joint venture with Congolese state copper miner Gecamines, with rights to two large copper and cobalt concessions.
"We have identified the principal obstacles to that growth, among them a lack of infrastructure, a very poorly exploited energy potential, and an industrial deficit especially in the area of construction. So we are keen to pursue this partnership," Kamitatu said.
Chinese investment channelled through the mining joint venture Sicomines created by the deal would rehabilitate the Mashamba and Dikuluwe copper and cobalt mines.
Kamitatu said the aim was to revitalise Congo's once mighty mining sector, a treasure trove of largely unexploited concessions attracting the interest of major foreign companies.
"In the next five years, (Sicomines) wants to reach 400,000 tonnes per year (of copper). This will help Congo eclipse by far the production capacity of the end of the 1980s," he said.
State miner Gecamines says copper production for 2007 was 23,030 tonnes, but a number of big mining projects are under way as the former Belgian colony seeks to reap the benefits of its huge mineral resources.
At the height of production in 1989, Congo produced around 500,000 tonnes of copper annually.
Kamitatu said the China-Congo venture had rights to 10 million tonnes of copper reserves, expected to last 25 years.
From Sudan to Angola and South Africa, China has been pumping billions of dollars of loans, investments and aid into Africa in the last two years, looking to lock up oil and mineral supplies for its hungry, fast-growing economy.
African governments generally welcome China's investments as coming unfettered by Western demands for good governance and transparency. Some analysts are already portraying the Chinese as Africa's "new colonialists" as they scramble for the rich resources coveted in the past by European powers.
India to lift import duties on African goods
India is considering lifting certain trade duties with African countries. The move is aimed at countering China's increasing business ventures in the resource-rich continent.
Government and industry sources say India is planning to announce a major trade and investment plan when it hosts an unprecedented summit with African countries in early April.
Under consideration: duty free imports of some items from Africa. The plan is being prepared at a time when China has been edging out India for some lucrative African contracts. Beijing and New Delhi are in competition for resources abroad to meet the energy needs of their rapidly growing economies.
Some trade policy makers here are talking about sweeping concessions on duties for African products, but key Indian industry figures are calling for a more selective approach.
The deputy director of the Confederation of Indian Industry, Shipra Tripathi, says relaxation of duties and quotas should be limited to sectors mature enough to handle such a change.
"Probably gems and jewelry or the traditional sectors that we've had in terms of industry," she said. "They're already entrenched. They have active players in those fields who have a global presence and a global reputation. If we were to look at having a free trade agreement in terms of textiles we will kill the textile industry, whatever exists in African countries."
The African Union has selected 14 member countries that will send heads of state to New Delhi this April for the first-ever India-Africa Forum. The event is seen as a reaction to a summit in November 2006 when Beijing hosted nearly 50 African leaders. That meeting resulted in China pledging to double aid to Africa and announcing billions of dollars in credit lines and commercial deals.
Indian government officials and industry leaders say their interest in Africa is not only economic.
CII's Tripathi says India must demonstrate that it is truly concerned with building an equitable partnership and empowering Africans.
"India industry should not be looked upon as colonizers or someone who is moving in to take away," she said. "They would rather be looked upon as people who would contribute."
Indian exports to Africa are growing rapidly with two-way trade now at about $20 billion a year. South Africa and Nigeria lead the way. India polishes nearly all of South Africa's diamonds and is a major importer of gold. India exports to that country fabric, yarn, auto parts, and machinery, especially agricultural equipment.
Nigeria provides 10 percent of India's petroleum needs.
Africa - China trade up by 24% from 1995 to 2007
The value of trade between China and Africa had increased by 24% to $74 billion between 1995 and 2007 according to figures released by the Trade Law Centre of Southern Africa (Tralac) today.
A researcher at Tralac, Taku Fundira, says Chinese imports from Africa increased by 27% over the review period while Chinese exports to Africa increased slower at 23%. "This resulted in a small trade deficit of $1.1billion for China with Africa in 2007."
These figures show that Angola and South Africa at 19%, Sudan (8%) and Egypt (6%) were China's biggest African trading partners over the period.
The top Chinese imports from Africa in 2007 were mineral products (80%), base metals (4%), precious stones and metals (4%), wood products (2%) and auto parts (2%).
The top Chinese exports to Africa in 2007 were clothing and textiles (13%) followed by machinery (9%), transport equipment (7%), base metals (2%) and footwear (2%).
SABC
A researcher at Tralac, Taku Fundira, says Chinese imports from Africa increased by 27% over the review period while Chinese exports to Africa increased slower at 23%. "This resulted in a small trade deficit of $1.1billion for China with Africa in 2007."
These figures show that Angola and South Africa at 19%, Sudan (8%) and Egypt (6%) were China's biggest African trading partners over the period.
The top Chinese imports from Africa in 2007 were mineral products (80%), base metals (4%), precious stones and metals (4%), wood products (2%) and auto parts (2%).
The top Chinese exports to Africa in 2007 were clothing and textiles (13%) followed by machinery (9%), transport equipment (7%), base metals (2%) and footwear (2%).
SABC
West Africa should seek development from EPAs, not just raw materials exportation
West Africa should approach trade talks with Europe as a way to boost its industry rather than focusing on preferential trade terms for the exportation of raw materials, a top negotiator for the region said.
The Guardian
The West African bloc is one of six regional groupings of mainly poor former colonies around the world that benefited from preferential trade terms with Europe that expired at the end of last year.
The European Union had hoped to sign an economic partnership agreement (EPA) with the bloc before the deadline but this failed to happen, with each side blaming the other. The bloc has set itself a new target to reach an EPA by mid-2009.
Cocoa and banana growers Ivory Coast and Ghana broke ranks with their partners from the Economic Community of West African States (ECOWAS) and made last-minute bilateral deals to safeguard advantageous terms for their key exports.
Ablasse Ouedraogo, special adviser to ECOWAS Commission President Mohamed Ibn Chambas, said West Africa's long-term interest did not rest in preferential trade terms for raw materials but in improving its infrastructure and industry.
"Europe must help exporters of raw materials to start transforming their goods or Africa will forever remain a provider of raw materials and a market for imported consumer goods," he said.
"An EPA is not only about trade, it is also about real development. West Africa should be looking to Europe for financial and technical support for improving its productive capacity," he said.
Ouedraogo also said West African countries, which include some of the poorest in the world such as Sierra Leone, Liberia and Niger, had more to gain in the long term from trading with each other than with Europe. He argued that in the age of cheap Chinese goods, West African countries struggling with major infrastructure problems such as a dearth of electricity had little prospects of ever being competitive exporters of finished goods to Europe.
However, there was a future in smaller scale industries in goods such as plastics or clothing that would find markets within the sub-region, he said, citing Ivory Coast and Nigeria as examples of countries already exporting to their neighbours.
"What Africa needs from Europe is support for real development and that will come through regional integration," he said. "The strategy of pushing Ghana and Ivory Coast to break their regional commitments to take on new ones towards Europe is damaging to West Africa's efforts to integrate."
However, Ouedraogo said the damage was not irreparable. He said experts and ministers from Ghana and Ivory Coast were due to take part in talks with the other members of the West African bloc on the EPA issue in Mauritania from Feb. 18 to 21.
Ouedraogo said the expiry of the preferential trade terms would not have significant consequences for most bloc members. All but four of the West African countries are so poor that they benefit from the Everything But Arms initiative which means they still enjoy preferential export terms.
The other four are Ghana and Ivory Coast, which have protected themselves for now, Cape Verde which only just emerged from the poorest bracket on Jan. 1 this year and has a three-year grace period, and Nigeria, a major oil exporter.
The Guardian
Free trade area incorporating COMESA, SADC proposed
East Africa’s trade ministers have proposed the formation of a larger trading bloc to eliminate friction among states over deals signed with partners outside the continent.
The proposal, made at a meeting of the trade ministers in Tanzania recently, calls for the formation of a grand Free Trade Area (FTA) consisting of the Common Market for Eastern and Southern Africa (COMESA) and the Southern Africa Development Community (SADC).
Sources at the meeting said the council of ministers had agreed that a wider FTA offered the best solution to the differences that have arisen among East African Community (EAC) member states in the recent past. The differences deepened recently with indications that Uganda plans to leave COMESA preferring to belong to a single trading bloc — EAC. Tanzania left COMESA eight years ago but remains a member of SADC, a situtation that has complicated EAC’s drive towards a unified market within COMESA.
The drive for a grand coalition is in line with a resolution passed during last month’s African Union summit in Addis Ababa that called for continent-wide cooperation among African states in matters of trade and development.
Differences among EAC member states have hinged on Tanzania’s firm grip of SADC, igniting regular debates as to what platform best serves East Africa’s economic interests.
The proposal for a grand FTA was made after trade technocrats from EAC member states failed to agree on the key outstanding issues such as the signing of a comprehensive Economic Partnership Agreement (EPA) with Europe later this year.
At the meeting, Tanzania is said to have maintained that it would continue being a member of SADC contrary to the wishes of Kenya, Rwanda and Burundi who are in favour of COMESA. Uganda reportedly tabled an even more radical proposal requiring the member states to cease their membership in all other trading blocs except EAC.
It also emerged that Tanzania was weighing the possibility of negotiating a new EPA with Europe under SADC while the rest of the EAC bloc are for the COMESA-backed Eastern and Southern Africa (ESA) platform.
All these plans were however dropped and with all EAC member states agreeing to signing new trade arrangements with the EU under the East African Customs Union.
Analysts said the challenge for Tanzania continuing EPA negotiations under SADC is that it would be forced to sign under the Southern African Customs Union (SACU). It is said that such a move would be in contravention of the WTO regulations since the country is already included in the pact that the EU signed with EAC Customs Union.
Kenya and the rest of EAC members also found it impossible to pursue the ESA route because COMESA remains an amorphous bloc having yet to establish a Customs Union.
A free trade area refers to a group of countries that have agreed to eliminate tariffs, quotas and preferences on most (if not all) goods trading among them. It a form of economic integration that comes out of countries whose economical structures are complementary.
The Comesa bloc has a 14-member FTA, including Kenya while SADC plans to establish a similar bloc by the end of this year.
Sources at the Arusha meeting said Kenya had expressed reservations over the grand FTA proposal, citing the threat that South Africa’s larger economy could pose to it. Observers, however, said that Kenya’s concern could be “laced with a tinge of mischief” because it has the provision to negotiate for favourable terms of an FTA arrangement.
Business Daily Africa
The proposal, made at a meeting of the trade ministers in Tanzania recently, calls for the formation of a grand Free Trade Area (FTA) consisting of the Common Market for Eastern and Southern Africa (COMESA) and the Southern Africa Development Community (SADC).
Sources at the meeting said the council of ministers had agreed that a wider FTA offered the best solution to the differences that have arisen among East African Community (EAC) member states in the recent past. The differences deepened recently with indications that Uganda plans to leave COMESA preferring to belong to a single trading bloc — EAC. Tanzania left COMESA eight years ago but remains a member of SADC, a situtation that has complicated EAC’s drive towards a unified market within COMESA.
The drive for a grand coalition is in line with a resolution passed during last month’s African Union summit in Addis Ababa that called for continent-wide cooperation among African states in matters of trade and development.
Differences among EAC member states have hinged on Tanzania’s firm grip of SADC, igniting regular debates as to what platform best serves East Africa’s economic interests.
The proposal for a grand FTA was made after trade technocrats from EAC member states failed to agree on the key outstanding issues such as the signing of a comprehensive Economic Partnership Agreement (EPA) with Europe later this year.
At the meeting, Tanzania is said to have maintained that it would continue being a member of SADC contrary to the wishes of Kenya, Rwanda and Burundi who are in favour of COMESA. Uganda reportedly tabled an even more radical proposal requiring the member states to cease their membership in all other trading blocs except EAC.
It also emerged that Tanzania was weighing the possibility of negotiating a new EPA with Europe under SADC while the rest of the EAC bloc are for the COMESA-backed Eastern and Southern Africa (ESA) platform.
All these plans were however dropped and with all EAC member states agreeing to signing new trade arrangements with the EU under the East African Customs Union.
Analysts said the challenge for Tanzania continuing EPA negotiations under SADC is that it would be forced to sign under the Southern African Customs Union (SACU). It is said that such a move would be in contravention of the WTO regulations since the country is already included in the pact that the EU signed with EAC Customs Union.
Kenya and the rest of EAC members also found it impossible to pursue the ESA route because COMESA remains an amorphous bloc having yet to establish a Customs Union.
A free trade area refers to a group of countries that have agreed to eliminate tariffs, quotas and preferences on most (if not all) goods trading among them. It a form of economic integration that comes out of countries whose economical structures are complementary.
The Comesa bloc has a 14-member FTA, including Kenya while SADC plans to establish a similar bloc by the end of this year.
Sources at the Arusha meeting said Kenya had expressed reservations over the grand FTA proposal, citing the threat that South Africa’s larger economy could pose to it. Observers, however, said that Kenya’s concern could be “laced with a tinge of mischief” because it has the provision to negotiate for favourable terms of an FTA arrangement.
Business Daily Africa
Effort against illegal ivory trade launched
Officials from 17 African countries have signed a landmark agreement in an attempt to end the illegal trade in ivory and boost the continent's elephant population.
The delegates met in the West African nation of Mali, to discuss the implications of a recent decision by the members of the Convention on International Trade of Endangered Species (CITES).
At a recent conference, CITES signatories agreed to allow large-scale sales of the country's ivory stocks, before a nine-year ban on its trade is enforced. The African coalition will seek to deal with issues arising from the sale and any effect it has on elephant poaching
In a statement, Mali's director of national parks and biosphere reserves, Bourama Niagate, said: "We must recognise that this upcoming nine-year resting period does not mean peace for the elephants. Ivory trade anywhere is a threat to elephants everywhere. Success in elephant conservation will depend first on the elimination of ivory trade."
Recent reports indicate that figures released by the Kenyan Wildlife Service show a four per cent increase in the elephant population in the country's Tsavo reserve over the past three years, boosted by efforts to stop illegal poaching.
International Animal Rescue
The delegates met in the West African nation of Mali, to discuss the implications of a recent decision by the members of the Convention on International Trade of Endangered Species (CITES).
At a recent conference, CITES signatories agreed to allow large-scale sales of the country's ivory stocks, before a nine-year ban on its trade is enforced. The African coalition will seek to deal with issues arising from the sale and any effect it has on elephant poaching
In a statement, Mali's director of national parks and biosphere reserves, Bourama Niagate, said: "We must recognise that this upcoming nine-year resting period does not mean peace for the elephants. Ivory trade anywhere is a threat to elephants everywhere. Success in elephant conservation will depend first on the elimination of ivory trade."
Recent reports indicate that figures released by the Kenyan Wildlife Service show a four per cent increase in the elephant population in the country's Tsavo reserve over the past three years, boosted by efforts to stop illegal poaching.
International Animal Rescue
Officials put up trade complications despite liberalised East African trade laws
Despite efforts by member states to create a conducive environment for increased intra-East African Community trade, the police, immigration and revenue authorities have stood in the way.
EAC Secretary General Juma Mwapachu said the requirements of business visa, temporary visa and import duties and declaration fees on various products have been removed or eased, but continue to be enforced by some officers at the border posts in the partner states.
Mr Mwapachu said this is causing frustrations for the business community, hindering cross-border trade and movement and holding back the regional integration and development process. He said that the EAC Customs Union, which was launched in January 2005, and the preparations towards the realisation of the EAC Common Market by 2010, had established a conducive environment for increased intra-EAC trade and free movement of persons.
Furthermore, he added, the EAC partner states have already agreed on a substantial number of measures to vastly ease Customs clearance and trade flow within the East African region. Mwapachu said the temporary visa charges previously levied by immigration authorities was removed in June 2007, being retained only as work permits for those entering Tanzania for “temporary assignments,” but no longer applicable to traders, transporters and visitors who are not seeking temporary employment in Tanzania.
Similarly, the import declaration fee on imports from Uganda and Kenya was removed in June 2007.
The immigration, police and revenue authorities in the EAC border regions must be on the frontline of the effort to promote cross-border trade and free movement of persons in the region,” Mr Mwapachu said.
The secretary general said the partner states have adopted the EAC harmonised standards for goods traded within the region, which has been enacted into law and provides for mutual recognition of national quality marks on products by the standards bureaux of the member states. He said this will save the goods being subjected to vigorous verification upon importation so long as they bear the quality marks.
On road transport, Mr Mwapachu said a grace period of seven days without payment of temporary road licence is allowed for Uganda and Kenya-registered vehicles entering Tanzania under the 1998 East African Tripartite Agreement on Road Transport, which is still in force.
He said officers at border posts should constantly update themselves on the decisions of the Council of Ministers on cross-border trade and movement so as to implement them accordingly.
To this end, the EAC will step up its public communications and revamp its website to deliver up-to-date business information on the region.
Other measures include closer monitoring by the EAC of the implementation of regional projects and programmes on the ground.
“The problems faced by the business community will be promptly attended to and brought before the EAC Council of Ministers for solutions to be worked out,” he said.
Non-tariff barriers still impede Africa's trade
If A country wants to ensure meaningful market access to a foreign market it requires a reduction in all types of potential barriers to trade.
Recently, there has been a renewed use of import controls by industrialised nations, such as antidumping , phytosanitary, labour and environmental controls, and rules of origin. It seems African countries are increasingly suffering the effect of especially phytosanitary controls and quality standards.
This becomes an even greater problem if a country is dependent on one or two primary commodities for the bulk of its export earnings. One of the problems is that African countries have been unable to participate in drawing up standards and regulations to protect their industries. It is therefore important for exporters to look at the most important non-tariff barriers that confront developing countries such as SA.
Antidumping is one of the most utilised forms of non-tariff barriers, especially by industrialised countries. Antidumping measures are imposed on products sold abroad at less than the product's market value. The main problem with these measures is that the importing country should be able to demonstrate that such imports have caused material injury to the domestic producers.
From 1995-2004, there were 69 antidumping cases in Africa, of which 50 involved SA.
However, it should be noted that SA is also the only African country to bring any antidumping cases to the World Trade Organisation (WTO), mainly because other less developed countries in Africa do not have the institutional capacity and political strength to register cases at the WTO. Developing countries are six times more likely to be targeted by industrial countries than developed countries . SA should thus take care to avoid subsidised imports that could disrupt its own domestic markets.
Although governments are allowed to intervene on trade to protect human, animal or plant life or health, it is also accepted that this should not be used to discriminate against particular trading partners or as a disguised form of protectionism. Phytosanitary regulations can seriously constrain the export potential of a country.
An example is the European regulations on citrus black spot, which negatively affects South African citrus fruit exports according to Mold (2005). Although these spots merely influence the appearance of fruit and are harmless to consumers, they are used as a reason to decrease export volumes to Europe.
The World Bank has confirmed that SA has been exporting citrus fruits to Europe for more than 70 years without causing any serious health issues.
Rules of origin are another nontariff barrier. These entail obliging beneficiary countries to prove that a high percentage of the value-add has been created within the national borders, and as such restrict sourcing from third countries. This severely constrains the export capacity of countries dependent on manufacturing production inputs from other countries. The result is that they are less able to source competitive inputs to ensure increased demand for the final product.
Studies show that the benefits for Africa provided under the US African Growth and Opportunity Act (Agoa) could have been about five times greater if countries were not subjected to the restrictive rules of origin that were imposed.
Antidumping is one of the most utilised forms of non-tariff barriers, especially by industrialised countries. Antidumping measures are imposed on products sold abroad at less than the product's market value. The main problem with these measures is that the importing country should be able to demonstrate that such imports have caused material injury to the domestic producers.
From 1995-2004, there were 69 antidumping cases in Africa, of which 50 involved SA.
However, it should be noted that SA is also the only African country to bring any antidumping cases to the World Trade Organisation (WTO), mainly because other less developed countries in Africa do not have the institutional capacity and political strength to register cases at the WTO. Developing countries are six times more likely to be targeted by industrial countries than developed countries. SA should thus take care to avoid subsidised imports that could disrupt its own domestic markets.
Although governments are allowed to intervene on trade to protect human, animal or plant life or health, it is also accepted that this should not be used to discriminate against particular trading partners or as a disguised form of protectionism. Phytosanitary regulations can seriously constrain the export potential of a country.
An example is the European regulations on citrus black spot, which negatively affects South African citrus fruit exports according to Mold (2005). Although these spots merely influence the appearance of fruit and are harmless to consumers, they are used as a reason to decrease export volumes to Europe.
The World Bank has confirmed that SA has been exporting citrus fruits to Europe for more than 70 years without causing any serious health issues.
Rules of origin are another nontariff barrier. These entail obliging beneficiary countries to prove that a high percentage of the value-add has been created within the national borders, and as such restrict sourcing from third countries. This severely constrains the export capacity of countries dependent on manufacturing production inputs from other countries. The result is that they are less able to source competitive inputs to ensure increased demand for the final product.
Studies show that the benefits for Africa provided under the US African Growth and Opportunity Act (Agoa) could have been about five times greater if countries were not subjected to the restrictive rules of origin that were imposed.
Although considerable progress has been made on reducing tariff barriers it does not mean that these barriers do not continue to impede exports. South African exporters should acquaint themselves with the most recent non-tariff barriers used by foreign countries and also align their company policies to ensure compliance and improve the potential of sound financial returns.
Prof André Jordaan is director of the Investment and Trade Policy Centre of the University of Pretoria. This article was co-written by researchers Riaan de Lange, Reyno Seymore and Chris Lotter.
Business Day SA
Africans press for Doha cotton concessions on subsidies
A group of 36 African cotton-producing nations have warned that there will be no deal in the Doha trade talks without drastic reductions in trade-distorting cotton subsidies.
Failure to accommodate the concerns of poor African nations contributed to the collapse of the Doha talks in Cancún, Mexico, in September 2003, and the issue has stalled the talks and put the U.S., the world's biggest subsidizer of cotton, on the defensive. Since then, disputes brought to the World Trade Organization by Brazil have found that multibillion-dollar U.S. cotton subsidy plans violate global trade rules.
Ahead of a new round of crucial talks aimed at a breakthrough deal on lower subsidies and tariffs for agricultural and industrial goods, Malloum Bamanga Abbas, Chad's WTO ambassador, speaking on behalf of the African cotton-producing nations, told a negotiating session, "Without a solution on cotton, there will not be a solution to the agriculture negotiations or to the Doha Round," according to senior trade diplomats.
"If there's no solution for cotton, consequently there will be no Doha deal," said a West African envoy, adding that the group is consulting with the U.S. "to get a concrete result."
In July, the chief U.S. agriculture negotiator, Joseph Glauber, rejected a draft proposal by the chairman of the agriculture talks, Ambassador Crawford Falconer of New Zealand, which called for deeper cuts in cotton subsidies compared with other products.
The blueprint reflected the demands of the so-called Cotton Four countries — Benin, Burkina Faso, Chad and Mali — and called for reductions in U.S. subsidies of as much as 82 percent, or more than $1.5 billion.
Several African envoys said they had major concerns about the failure of the U.S. to make any counteroffer, while others were confident they will achieve what they want on cotton.
But a former senior U.S. trade official said, "You're not going to see anything move forward until after the U.S. elections."
Women's Wear Daily
Failure to accommodate the concerns of poor African nations contributed to the collapse of the Doha talks in Cancún, Mexico, in September 2003, and the issue has stalled the talks and put the U.S., the world's biggest subsidizer of cotton, on the defensive. Since then, disputes brought to the World Trade Organization by Brazil have found that multibillion-dollar U.S. cotton subsidy plans violate global trade rules.
Ahead of a new round of crucial talks aimed at a breakthrough deal on lower subsidies and tariffs for agricultural and industrial goods, Malloum Bamanga Abbas, Chad's WTO ambassador, speaking on behalf of the African cotton-producing nations, told a negotiating session, "Without a solution on cotton, there will not be a solution to the agriculture negotiations or to the Doha Round," according to senior trade diplomats.
"If there's no solution for cotton, consequently there will be no Doha deal," said a West African envoy, adding that the group is consulting with the U.S. "to get a concrete result."
In July, the chief U.S. agriculture negotiator, Joseph Glauber, rejected a draft proposal by the chairman of the agriculture talks, Ambassador Crawford Falconer of New Zealand, which called for deeper cuts in cotton subsidies compared with other products.
The blueprint reflected the demands of the so-called Cotton Four countries — Benin, Burkina Faso, Chad and Mali — and called for reductions in U.S. subsidies of as much as 82 percent, or more than $1.5 billion.
Several African envoys said they had major concerns about the failure of the U.S. to make any counteroffer, while others were confident they will achieve what they want on cotton.
But a former senior U.S. trade official said, "You're not going to see anything move forward until after the U.S. elections."
Women's Wear Daily
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