Statement by Ms. Rabab Fatima at the Regional consultation for LDCs in Africa and Haiti Trade elements of the Doha Programme of Action Regional Perspectives
Excellencies, Distinguished Delegates,
Dear Colleagues,
I am very pleased to welcome you all to this regional consultation on the trade elements of the Doha Programme of Action for LDCs.
We are meeting at a critical time.
The lives and livelihoods of people in LDCs are being severely and disproportionately affected by multiple and overlapping crises COVID-19, climate change, and conflicts, especially the war in Ukraine.
[And] Africa is bearing a heavy brunt of these crises.
International trade has faced severe interruptions.
Trade costs have risen significantly.
Sanctions, export restrictions, inflation, energy costs, volatility in financial markets, and disruptions in value chains and transport ¨C they are all having an impact.
Despite the huge disruptions we saw in 2020, international trade started rebounding in 2021. This continued during the first half of last year.
The export of goods from LDCs in 2021 amounted to US$ 229 billion, representing a 27 per cent increase from 2020.
And it was particularly encouraging to see that African LDCs saw a considerable rise in their exports that year. At $145.4 billion, this showed a 35 per cent increase from the previous year.
However, once again, global trade faces difficult headwinds.
This most recent slowdown is shaped by a slowing global economy, persistent inflation, sharp rises in commodity prices and disruptions in access to essential goods - such as grain, gas, and fertilizers.
Distinguished Delegates,
Given the current global circumstances, the international community needs to act.
Coordinated and concerted measures are needed to enable LDCs to better access international trade and global value chains.
When Nelson Mandela spoke at the Make Poverty History rally in 2005, he said that trade justice was the first step needed to alleviate poverty. And that remains so true even today.
Trade is a sine-qua-non for ensuring sustained growth and achieving the SDGs.
The Doha Programme of Action for LDCs for the decade 2022-31 sets an ambitious agenda, that can serve as an accelerator to promote LDCs¡¯ trade.
The Programme reinforces existing global commitments, and agrees on numerous specific goals and targets - as well as new measures and initiatives.
As you would expect, international trade is one of the six fundamental pillars of the Programme.
LDCs can derive significant benefit from a multilateral trading system under the WTO. This should be universal, rules-based, open, transparent, predictable, inclusive, non-discriminatory, and equitable.
Distinguished Colleagues, I want to highlight six key targets and commitments from the Programme of Action which are highly pertinent to African LDCs.
First and foremost: The POA makes specific commitments to fully and expeditiously implement all the decisions of the WTO Ministerial Conferences taken in favour of LDCs. And these include:
- duty-free and quota-free market access
- simplified and transparent rules of origin
- preferential treatment to services and service suppliers of LDCs
- and capacity building support.
Second: the POA sets an ambitious target to significantly increase the exports of least developed countries, with a view to doubling their share of global exports by 2031.
This is especially important for African countries.
This continent has only about 3 percent of the share of global trade, despite having tremendous resources including oil, diamonds, gold, and a vast array of agricultural products such as coffee, tea, and cocoa.
Just one per cent increase in trade share would generate about $70 billion of additional income for Africa. This is about three times the total ODA that Africa receives annually.
Third: African LDCs need massive investment for trade capacity building including diversification, improving value chains, enhancing technology content, and meeting necessary standards.
The DPOA sets an ambitious target to increase aid for trade support to LDCs, aiming to double it by 2031.
This is going to be highly critical for the African LDCs. They need enhanced capacity and competitiveness, especially to harness their untapped potentials of product and market diversifications. And to ensure their upward mobility in global trade and value chain.
Fourth: The international community made a firm commitment to promoting regional economic integration and enhancing regional connectivity. The new Programme of Action also sets a target to fully implement the Trade Facilitation Agreement and provide assistance for capacity-building of LDCs in this regard.
These will increase regional trade, including integration of LDCs into regional value chains and services trade.
The fundamental building blocks required to achieve this aim include:
- strong cross-border energy and connectivity infrastructure;
- harmonized customs rules and procedures;
- and solid business integration ¨C such as regional electronic settlement systems, electronic cargo tracking systems, and easing restrictions on services trade.
The establishment of the Africa Continental Free Trade Agreement (AfCFTA) will further complement these efforts to boost intra-African trade; and to strengthen production and exports, create employment, and limit the impact of commodity price volatility.
Fifth: We must realize the potential of e-commerce.
Digitalization reduces many of the barriers to entry for international trade facing MSMEs and startups in LDCs.
During the pandemic, this sector has seen a major boom.
While the developed countries could turn to digital platforms to continue business during the lockdowns; this was not an option to many businesses in LDCs.
The DPOA urges development partners to provide additional and substantial support in this area.
That includes support for:
- building and gaining access to required energy infrastructure;
- electricity,
- access to internet, digital infrastructure including Wi-Fi connectivity;
- Fintech, including mobile banking; and
- developing transparent and fair regulations and promoting personal data protection.
Finally: The DPOA invited development and trading partners to extend to graduated countries the trade preferences previously made available as a result of LDC status.
This is crucial as a growing number of LDCs are meeting the graduation threshold.
Sixteen LDCs are currently in the pipeline to graduate.
And the good news is- African LDCs are making considerable progress towards graduation in recent years.
In the last review, out of the five countries that met the criteria for graduation for the first time, four were from this continent (Comoros, Djibouti, Senegal, Zambia).
And, as you are all aware, the first country that graduated from the category of LDCs was from this continent, which was Botswana.
The DPOA recognizes the importance of maintaining support to graduating countries, to ensure continued and sustainable development. And there is a strong package of support, providing a sense of security to the graduated countries.
The Sustainable Graduation Support Facility (iGRAD) is an important inter-agency support mechanism for graduating countries.
Distinguished Delegates,
We have an ambitious agenda before us.
But the goals and targets will only be ambitions, without a strong focus on implementation.
We must make it happen.
My Office is fully committed to, and shall invest every effort and resources to translate the goals and targets of the DPOA into concrete actions and deliverables.
We have established a renewed partnership with the WTO, to support the implementation of trade-related goals and targets for the 46 most vulnerable countries.
The MoU between us lays out the specific areas of support to be extended to LDCs in a collaborative manner.
And our joint support measures include:
- evidence-based analysis,
- joint capacity-building activities
- and joint outreach and awareness-raising efforts for trade related technical assistance and capacity building activities.
As part of these joint efforts, WTO and UNOHRLLS, have commissioned a study, on ¡°Digital Trade Opportunities and Challenges¡± which has already been shared with you. The study offers important perspectives that will help LDCs embark on a journey to promote e-commerce and digital trade.
I shall rest it here.
I look forward to a fruitful discussion today and tomorrow.
Your observations and recommendations will be carried forward to the Fifth UN Conference on LDCs to be held in Doha, from 5-9 March 2023.
I look forward to meeting many of you there.
I thank you.