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News : International Last Updated: Feb 13, 2017 - 1:45:37 AM


African countries to stand up to mega-trading blocs
By Commonwealth Secretariat
May 23, 2015 - 9:21:22 AM

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Senior officials and experts will meet to consider the future of African trade in light of the emergence of mega-trading blocs which exclude more than 160 countries from regional trade negotiations.

The meeting organised by the Commonwealth Secretariat in collaboration with the International Institute for Sustainable Development will take place in Nairobi from 26 to 27 May 2015. Participants will look at ways to ensure the trade interests of African countries are taken into account at global and regional levels.

The advent of mega-trading blocs - the Trans-Pacific Partnership, the Trans-Atlantic Trade and Investment Partnership and the Regional Comprehensive Economic Partnership in Asia - has significant implications for regions such as Sub-Saharan Africa, which, so far, has been bypassed by negotiations.

Deodat Maharaj, Deputy Secretary-General of the Commonwealth Secretariat, described the conference as ‘essential’ to amplify the concerns and interests of member countries excluded from key trade talks.

He said: “The world economy has seen a seismic shift in the trading environment with the rise of regional giants dominating the landscape. More than 160 countries are excluded from these mega-regional negotiations, including the entire Sub-Saharan Africa. The Commonwealth, therefore, has taken a leading role in raising global awareness of the implications of mega-trading blocs for countries squeezed out of deals.

“With the next World Trade Organisation conference to take place in Nairobi later in the year, this meeting is both timely and essential to bring together experts to advocate for the trade interests of excluded countries. It will be an opportunity to ensure member states do not lose out, and to find ways to boost trade in the region, vital for sustainable economic growth.”

The conference will provide a unique platform for policymakers, standard-setting bodies, experts and researchers to assess the impact of mega-trading blocs on Sub-Saharan Africa, share expertise and explore strategic responses. The keynote address will be delivered by Dr Amina Mohamed, Cabinet Secretary of the Kenyan Ministry of Foreign Affairs and International Trade.

“These mega-regionals could be major game-changers for world trade”, said Mohammad Razzaque, Acting Director of the Commonwealth Secretariat’s Trade Division.

Describing the possible negative consequences the region could face, Dr Razzaque added: “Sub-Saharan African countries could face greater competition in their key export markets, while investment may be diverted when countries cannot meet the stricter rules and standards introduced by these major new agreements.”

The Commonwealth Secretariat will present the first draft of its Policymakers Handbook on Regionalism and Mega-Trading Blocs at the meeting. Outcomes of discussions will inform the Secretariat’s ongoing programme of work to maximise the trading capacity of member countries.


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