African countries are expected to lobby for more access to the duty free global market for agricultural products at the upcoming World Trade Organisation Ministerial Conference in Nairobi.
Top on the agenda during the December 15-18 meeting is the issue of reduction of agricultural subsidies and implementation of domestic support measures to reduce competition from exports from developing countries.
According to Peter Kiguta, EAC Director General of Customs & Trade, African countries are already negotiating on how to present these key issues to the other partners for negotiations.
“This is the right time is Africa lobbying for support from developing countries to comprehensively address their issues,” said Mr Kiguta.
African countries are seeking to address the issue of agricultural subsidies, “anti-dumping” barriers by rich countries like the US, Japan and Korea that restrict exports of agricultural products, steel and other goods from developing countries; the impact of lower industrial tariffs on domestic industries in many African countries; and the failure of the rich countries to provide adequate technical assistance to enable developing countries to comply with trade regulations and compete effectively.
READ: Africa to negotiate for better terms at WTO meet
READ: Africa to negotiate for better terms at WTO meet

“Under the WTO, African countries have been forced to open their markets to cheap imports that undermine domestic agriculture and industry while rich countries have failed to lower their own trade barriers, which cost developing countries some $100 billion in lost opportunities,” said Mr Kiguta.
He added that instead of addressing these concerns, the rich countries and the WTO secretariat are pressing for a new round of negotiations.
Despite a commitment under WTO to reduce certain agricultural subsidies by 20 per cent, overall subsidy levels in the industrialised countries of the Organisation for Economic Co-operation and Development (OECD) have continued to rise. Payments to farmers now reach some $1 billion a day, equivalent to the total daily income of the world’s poorest 1 billion people. Additional earnings
A World Bank report indicates that the elimination of such farm subsidies along with reductions in high agricultural tariffs and the granting of duty- and quota-free access to OECD markets for exports from the LDCs could bring developing countries additional earnings of $15,000 billion over 10 years.
“African ministers want to obtain binding commitments from especially the high-subsidy countries, such as the US, Japan, China and the Republic of Korea, to reduce the agricultural subsidies that enable the developed countries to export cheap food to developing countries, to the detriment of farmers in Africa,” said Joshua Mugodo, director of economic affairs at the Kenyans Ministry of Foreign Affairs and International Trade.
He said that agricultural subsidies to farmers in the US, Europe, and Japan $1 billion a day are six times the amount these countries provide in development assistance. Together with other measures, such as tariffs and quotas, these subsidies make it difficult for developing countries to compete in rich country markets.
Even more damaging, they allow agricultural exports from the rich countries to drive small farmers out of business in developing countries.
The upcoming talks will also review past trade agreements for inequities that African and other developing countries argue have unfairly denied them the benefits of increased global commerce.
Source: The East African

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