Transcript FEATS SEMINAR, 20TH OCTOBER, 2008

NATIONAL INCEPTION MEETING ON
“FOSTERING EQUITY ACCOUNTABILITY
IN THE TRADING SYSTEM (FEATS)
PROJECT, 20TH OCTOBER, 2008,
CRESTER GOLF VIEW, LUSAKA, ZAMBIA
ROLE OF THE MINISTRY OF
COMMERCE, TRADE AND INDUSTRY
IN THE TRADE POLICY MAKING
PROCESS
Evaluation of the extent to which the
ministry of Agriculture and Co-operatives
is consulted in the trade policy making
process in Zambia
SOME DEFINITIONS..........
• SOME DEFINITIONS……
• POLICY…A STATEMENT OF GOALS, OBJECTIVES
AND COURSES OF ACTION OUTLINED BY THE
GOVERNMENT TO PROVIDE GUIDANCE FOR ITS
ACTIVITIES.
• POLICY PROCESS…COLLECTIVE
PROCEDURES/MECHANISMS FOR EFFECTIVE
POLICY FORMULATION, ADOPTION,
IMPLEMENTATION, MONITORING AND EVALUATION
AND THE CONSULATION THAT TAKES PLACE AT
ALL STAGES
MCTI MISSION STATEMENT
• why the Ministry exists…
• TO FACILITATE AND PROMOTE THE GROWTH,
DEVELOPMENT AND COMPETITIVENESS OF
COMMERCIAL, TRADE AND INDUSTRIAL SECTORS
IN ORDER TO ENHANCE SOCIO-ECONOMIC
DEVELOPMENT
MCTI GOAL
• To achieve what……..
TO DEVELOP A SUSTAINABLE AND GLOBALLY
COMPETITIVE COMMERCIAL, TRADE AND
INDUSTRIAL BASE IN ORDER TO CONTRIBUTE TO
SOCIAL ECONOMIC DEVELOPMENT.
ORGANISATION…DEPARTMENTS
• HUMAN RESOURCE AND
ADMINISTRATION
• PLANNING AND INFORMATION
• INDUSTRY
• FOREIGN TRADE
• DOMESTIC TRADE
MCTI CUSTODIAN OF TRADE POLICY
• Regional and international trade
organisations recognise Zambia’s
sovereignty that MCTI is Custodian of Trade
Policy in Zambia ……………
• Government Gazette Notice No. 547 Vol. XL,
No. 58 of 21st September, 2004 on Statutory
Functions, Portfolios and Composition of
Government signed by Dr. Joshua L Kanganja,
Secretary to the Cabinet allocated the following
functions to MCTI:
Functions of MCTI….
1. Trade Licensing policy
2. Commercial, Industrial and Trade Policy
3. Foreign Trade Policy and Agreements
4. Competition and Trading
5. Investment promotion policy
6. Privatisation policy
7. Companies and Business Names
OTHER FUNCTIONS OF MCTI..
•
•
•
•
•
Industrial Research
Patents, Trade Marks and Designs
Copyrights
Weights and Measures
Medium and Small Scale Enterprise
Development
TO WHAT EXTENT HAS THE MCTI BEEN CONSULTED
DURING THE TRADE POLICY MAKING PROCESS?
• IN RECOGNITION OF ITS ROLE IN THE
GOVERNMENT OF ZAMBIA MCTI HAS BEEN
CONSULTED IN POLICY MAKING AND REVIEW
• The final positions Zambia takes to negotiations
must have the blessing of Cabinet.
• MCTI Minister keeps Cabinet and Presidency
informed of developments in negotiations.
• DOMESTIC LEVEL: MCTI is the policy initiator
of domestic and international (in close
consultation with MFA, the Presidency and
Cabinet) trade policy.
• REGIONAL & MULTILATERAL LEVELS: MCTI
adivises the Zambian Government on
Membership based on perceived benefits.
• Zambia is a key stakeholder in the
following regional and international trade
organisations, treaties and arrangements:
WTO, COMESA, SADC, ACP/EU-EPAs,
UNCTAD, NEPAD, AGOA, EBAs, ITC and
BILATERALS.
• Each of the organisations, treaties and
arrangements has a philosophy on how trade
should be conducted regionally and globally.
• Zambia’s Membership to regional and
multilateral trade organisations and treaties
is voluntary upon recognition of likely
benefits to the social and economic benefits
for the country.
• MCTI:
– Makes an input in the regional and
international trade policies and
implementation mechanisms
– Provides factual information in the policy
documents review reports
– Is allowed to present and market/defend
Zambia’s position on issues.
– Is invited to participate at
meetings/conferences
– Hosts missions to Zambia to consult on trade
and related issues.
– Is given an opportunity to consult internally
through the most effective mechanisms on
given issue.
– Is allowed to invite other stakeholders to
submit sector reports directly to regional and
international missions.
HAS MCTI BEEN CONSULTED BEFORE IN THE
PROCESS OF MAKING ANY RELEVANT CHANGE IN
THE EXISTING COUNTRY’S TRADE POLICY?
• POINTS TO NOTE:
• Ratification and Domestication of Trade
Treaties are National Policy issues in Zambia.
• National Policy-making in Zambia is a preserve
of the Executive Wing of Government through
Cabinet Decision OR Pronouncement by the
President.
• Presidential pronouncements or decrees may
be made with or without consulting the Minister
of MCTI.
Consultation on trade policy
changes.........
• IN VIEW OF THE ABOVE:
• Zambia has been consulted on regional and
international trade agendas, e.g. on content and
implementation of COMESA and SADC trade
protocols, WTO Trade Policy Reviews, ACP/EU
Economic Partnership Agreements.
Consultation on trade policy
changes.........domestic level
• Changes to Trade policy is a responsibility of
the MCTI. In recent times trade policy changes
include:
– Amendment of the Control of Goods Act to
provide for Safeguard measures against
imports which threaten or cause injury to
domestic industry.
• Scrap Metal Act to regulate crap metal trade.
• Amendment to the Trades Licensing Act to:
– revise fees and regulate wholesale and
retail trade; and
– Increase trading hours
• Enactment of Competition and Fair Trading Act
to regulate anti-competitive business practices.
ACTUAL EXPERIENCE OF THE MINISTRY
IN TRADE POLICY MAKING PROCESS
• REGIONAL LEVEL.
– SADC Rules of Origin negotiations, relations
with SACU, Trade in Services liberalisation
among member states
– COMESA list of sentive products for
exclusion from the Common External Tariff.
ACTUAL EXPERIENCE…..
–List of products to be traded under the
COMESA Simplified Trade Regime
–Ratification of the Protocol on the
COMESA Fund (Aid for Trade
programme).
Actual experience......
• BILATERAL TRADE
– Joint Permanent Commissions with
various countries to discuss trade with
other countries. Active ones include
Tanzania, Zimbabwe and Namibia.
Actual experience......
• MULTILATERAL TRADE
WORLD TRADE ORGANISATION
– MCTI is consulted extensively on Trade
policy reviews and new trade policies.
– Trade Review Policies carried out in 1996,
2002 and on-going 2008.
– Stakeholder paticipation high.
Actual experience......
• consulted on the factual content on Zambian
Chapter
• Sector input encouraged.
• Geneva-based officials and National Working
Group on Trade (NWGT) utilised.
• NWGT membership include sector ministries,
statutory bodies, private sector (chair) and civil
society.
Actual experience......
ACP/Economic Partnership Agreements
• Zambia has participated fully in trade
negotiations between the 77 ACP countries
and the European Union.
• Won confidence of Eastern and Southern
African (ESA) Group who have sought her
leadership in negotiating with the European
Commission.
• Zambia’s position is a result of national
consultations. Zambia’s position has been
approved by Cabinet.
Domestic policy
• Domestic policy: 1994 Commercial,
Industrial and Trade Policy which has
since been revised into a working policy
paper through a comprehensive
stakeholder consultative process.
• Specific policies which have been
formulated include:
Conclusion……
National Trade Policy is a preserve of the
Government of the Republic of Zambia through
the Minister of Commerce, Trade and Industry.
No other authority can initiate and conclude
trade policy change outside the Ministry of
Commerce, Trade and Industry.
The Ministry of Agriculture, Food and Fisheries is
a member of the NWGT. It regulates
agricultural trade domestically and
internationally.