Transcript EU Accompanying Measures

FOSTERING EQUITY
AND ACCOUNTABILITY
IN THE TRADING
SYSTEM (FEATS)
ROLE OF THE MINISTRY OF
AGRICULTURE IN THE
TRADE POLICY MAKING
PROCESS
BY
MoAFS
PRESENTATION OUTLINE
•
•
•
•
•
INTRODUCTION
OBJECTIVES
APPROACH TO DEVELOPING THE PAPER
TRADE POLICY MAKING INSTITUTIONS IN MALAWI
MoA AND TRADE POLICY DEVELOPMENT IN
MALAWI
• BENEFITS OF A STAKEHOLDER-WIDE
CONSULTATIVE TRADE POLICY MAKING PROCESS.
• MAJOR ISSUES OF PARTICIPATORY PROCESSES IN
THE TRADE POLICY MAKING
• RECOMMENDATIONS
1.
INTRODUCTION
ROLE OF AGRICULTURE IN MALAWI’S ECONOMY
•
•
•
•
Contributes 38% to GDP.
Employs 85% of workforce.
Contributes 90% to foreign exchange.
Government’s aim increase agricultural
productivity & profitability
• For equitable household food security, income
and employment and sustainable utilization of
natural resources
1.
INTRODUCTION
ROLE OF AGRICULTURE IN MALAWI’S ECONOMY
•
1987 agricultural markets liberalisation, beginning of
government company privatization.
•
Increase economic efficiency for promoting trade.
•
Malawi’s trade performance dismal with a negative
visible trade balance.
•
Reflects skewed trade benefits between trading
partners.
•
Formulation and application of trade policies and
strategies for equitable distribution of trade benefits.
•
Mejn with Cuts implement FEATS to raise awareness
for better coherence between development & trade
policies.
2.
OBJECTIVES OF THE PAPER
Over all objective was to evaluate extent MoA is consulted
in trade policy making process in Malawi. Specifically,
• Identified trade policy development stages MoA is
involved in Malawi.
• Identified the nature of response of the MoA to new trade
policies of the MoIT.
• Outlined benefits of a stakeholder-wide consultative
trade policy making process.
• Outlined major issues in the trade policy making process
in Malawi
• Made some recommendations on the appropriate trade
making processes.
3.
APPROACH TO DEVELOPING THE
PAPER
• Literature based.
• Used literature on trade policy development,
trade policies, trade strategies, agricultural
policies, agricultural economics and agricultural
trade.
• Literature included those from international and
domestic trade related organisations.
4. Role of the MoA in Trade Policy
Making Process
Trade Policy Making Institutions in Malawi
• The Malawi constitution guides trade policy
making process.
• Trade policy legislation
• Support from Act of Parliament
• Subsidiary registration
• MoIT conferred with responsibility to make trade
policies
• Tariffs are the main Malawi’s trade measure in the
context of its trade policies.
4. Role of the MoA in Trade Policy
Making Process
Trade Policy Making Institutions in Malawi
• Other trade measures: SPS, customs inspection
and clearance, customs valuation, duties, import
taxes, and export taxes
• MoIT also negotiates and implements
multilateral, regional and bilateral trade
arrangements.
• MoIT does it through MoFAIC
• Other ministries participate through IMCs &
Regional Working Groups
4.
Role of the MoA in Trade Policy
Making Process
Trade Policy Making Institutions in Malawi
• IMCs & RWG include: SADC-NWGN, Agriculture
cluster & NWGTP among others.
• IMCs also provide technical expertise and
recommendations on multilateral, regional and
bilateral trade arrangements.
• SADC-NWGN specifically provides a consultative
public/private sector forum for examining the
Malawi-SADC trade issues.
• Agriculture cluster examines SPS measures in
COMESA and between EU and COMESA
countries.
4. Role of the MoA in Trade Policy
Making Process
Trade Policy Making Institutions in Malawi
• NWGTP advises government on all trade related
legislative and policy matters.
• It also provides a framework for monitoring and
evaluating the implementation of Malawi’s trade
agreements
• It also provides a framework for ensuring
conformity with the agreed rules
• It facilitates consultation and cooperation among the
private and public sector parties to promote trade
4.
Role of the MoA in Trade Policy
Making Process
MoA and Trade Policy Development
• MoA consulted during trade policy diagnostic
survey planning.
• It is also consulted at implementation-data
collection and stakeholder consultation workshops.
• This helps to assess potential impact of trade
policies on agriculture.
• But provides minimal ownership of policy making
process to MoA.
4.
Role of the MoA in Trade Policy
Making Process
MoA and Trade Policy Development
• At formulation/review stage, MoA consulted on Competition
& Trade Policies, Export Strategy, SADC & COMESA Market
Integration Agenda, AGOA and WTO Policies.
• MoA achieves it by attending IMCs and NWGTP
preparatory sessions.
• MoA also responds to interviews on trade policy
formulation/reviews by consultants.
• MoA is also a member of the SADC-NWGN and
attends all the necessary sessions on trade policy
formulation/review it organises.
4.
Role of the MoA in Trade Policy
Making Process
MoA and Trade Policy Development
• COMESA recent consultation was on Agricultural
Trade in Relation to Tariff and Non-tariff Barriers in
COMESA.
• A major weakness of the approach has been slow
& inadequate feedback from secretariats.
• As for on going EPA discussions, MoA chairs the
Agriculture Cluster that reviews SPS measures.
• Thus MoA directs country’s position on SPS
measures.
• It also participates in issues that involve food
standards handled by the Malawi Bureau of
Standards
4. Role of the MoA in Trade Policy
Making Process
MoA and Trade Policy Development
• MoA also a member of EPA Market Access &
Development Clusters.
• Under Market Access MoA has been involved
in revising a list of sensitive products for
Malawi.
• ESA sensitive products will be exempted from
reciprocal liberalisation to boost their revenue
capacities, local agro-industrial development
and food security.
4.
Role of the MoA in Trade Policy Making
Process
MoA and Trade Policy Development
• MoA recent trade policy review consultations in which the
MoA participated for WTO was in 2007.
• This was on measures of tariff, customs and legislation.
• And how these affect the productivity of the agriculture
sector.
• MoA not served with a copy of report for a comprehensive
analysis and provision of feedback
• MoA participation varies from one senior rank to another.
• Both preparatory sessions and consultations are either
handled by Assistant Directors, Directors or PS.
• At times these are handled by the minister of agriculture
4.
Role of the MoA in Trade Policy
Making Process
MoA and Trade Policy Development
• At regional level, Minister of Agriculture is a member of the
Council of Ministers of COMESA and SADC.
• These act upon recommendations from the Trade Technical
Committees.
• Council of Ministers make recommendations to the Summit
of Heads of States.
• Summit discusses, reviews and approves policy proposals
for implementation.
• Drawback is COMESA & SADC do not have
regional parliament to legislate and register
regional trade measures.
4. Role of the MoA in Trade Policy
Making Process
MoA and Trade Policy Development
• MoA participates in implementation, monitoring and
evaluation of the trade policies through the IMCs
and NWGTP.
• IMCs and NWGTP organises regular review
sessions.
• Usually such meetings mobilize progress reports
from various sectors for consolidation.
• IMC consolidates for SADC or COMESA Annual
Summits or Special Progress Review Meeting.
• MoA contributes a chapter to such reports.
4.
Role of the MoA in Trade Policy
Making Process
MoA and Trade Policy Development
• MoA occasionally makes some self initiatives in
developing comments and views on trade policy
issues.
• MoA made comments on assigning roles of
institutions in the NWGTP.
• MoA submitted comments to the MoIT on the list of
sensitive products.
• MoA compiled comments on the development of
COMESA Regional SPS Laboratories.
4.
Role of the MoA in Trade Policy
Making Process
Benefits of a Stakeholder-Wide Consultative
Trade Policy Making Process
• Sustains trade liberalisation as frequent
interactions enhance understanding of the
process.
• Engenders sense of ownership of the
policies and programmes.
• Legitimates the policies resulting from
process.
• Promotes accountability
4.
Role of the MoA in Trade Policy
Making Process
Major Issues of Participatory Processes in the
Trade Policy Making
• Pressure on technical, time and monetary
resources.
• Complex and difficult to manage & operate.
• Little opportunity to build up a relationship of trust.
• Donor driven technical assistances tend to
concentrate on donor priorities.
• Inadequate coordination on the part of government
institutions.
5. Recommendations
• MoEPD should take a leading role by working hand
in hand with the sector ministries.
• Technical assistance should be designed to
transfer skills and knowledge to government
officials and not under capacitating them.
• Strengthen coordination amongst government
institutions by putting in place an independent
government institution to coordinate.
• Increase capacity through increased human
resources, utilization of available human resources
and adequate financial resources