Global Trade Hurts Africa

Emmanuel Wetang’ula (Business Daily) - Recent heightened activity by the European community entering into Economic Partnership Agreements (EPA) with African countries, to counter the influence of the equally powerful eastern bloc reminds me of the historical scramble and partition of the continent. This event paved way for a cataclysm that is Africa today. The continent still labours under the catastrophe.

Trade related issues, are very political and subject to protectionism by various powerful countries. This action has not at all advanced the interests of the developing countries which have found themselves on the receiving end. In fact, the existing trade regime has not been geared towards development.

It is largely felt by developing countries that it only serves to reinforce and exacerbate the vast inequities between the developed and the less developed.

Trade regime is reinforced by institutions such as the World Bank and the IMF, and by bilateral trade treaties such as AGOA and NAFTA. The overriding objective is to create a unified global economy, which is facilitated by policies such as Structural Adjustment Programmes that demand trade liberalisation so as to increase the participation of Western investors in developing countries.

How can this trade regime be acceptable when it takes away developing countries’ policy autonomy, leads to unregulated international markets, and occasions so much suffering to billions of people? Besides, institutions championing trade liberalisation, including the WTO, are themselves not democratic.

There is no doubt that the current ‘negotiations’ are going on under the same skewed trading regime that is not bound to yield much for developing countries.

International trade ought to be perceived from the perspective of the preamble to the Agreement Establishing the WTO listing its aspiration, inter alia, as raising standards of living, ensuring employment and a large and steadily growing volume of real income. With regard to its aspirations, there has been an echoing chasm between aspiration and achievement.

It is time to take stock and review the impact that trade liberalisation has had on the social and economic rights of citizens of developing countries.

Instead of chasing new agreements, the contracting parties should review the existing agreements, to make the international institutions more democratic.

There is no point adopting new agreements when the rule-making and decision making processes favour industrialised countries.

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