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Towards Equitable Agricultural Development in the EAC:

An Analysis of the Multilateral Trading System. Towards Equitable Agricultural Development in the EAC:. Fostering Equitable Agricultural Development in Africa (FEAD) Project. Structure of the Presentation. Agricultural disciplines in the Multilateral Trading System (MTS)

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Towards Equitable Agricultural Development in the EAC:

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  1. An Analysis of the Multilateral Trading System Towards Equitable Agricultural Development in the EAC: Fostering Equitable Agricultural Development in Africa (FEAD) Project

  2. Structure of the Presentation • Agricultural disciplines in the Multilateral Trading System (MTS) • Equitable Agricultural Development • Towards an Enabling Environment (Opportunities & Constraints) • Conclusion and the way forward

  3. Agricultural Disciplines in the MTS • The WTO Agreement on Agriculture disciplines: • Market Access • Domestic Support • Export Subsidies

  4. Agricultural Disciplines in the MTS: Market Access STRATEGIC INTEREST OF EAC REGION Would facilitate value-addition on their agricultural products, sold at higher prices on world market and increasing incomes for farmers

  5. Agricultural Disciplines in the MTS: Export Subsidies STRATEGIC INTEREST OF EAC REGION Would guarantee stable international prices for EAC agro-products, hence increasing livelihoods

  6. Agricultural Disciplines in the MTS: Domestic Support

  7. The Cotton Issue • Cotton issue has received specific attention in DDA. • Initiallyintroduced by 4 cotton-dependentW.African countries affected by heavilysubsidisedcottonproducers in developed countries • Current WTO negotiations aim to : • dramatically reduce these subsidies • provide development assistance to LDCs dependent on cotton STRATEGIC INTEREST OF EAC REGION EAC countries are cotton producers with great potential, and 4 would be eligible for development assistance

  8. An Introduction to EAD • MTS being an avenue for growth, development and poverty reduction • EAC endowed with great potential in agriculture THUS… • Strong need for an enabling environment that… • Harness opportunities in MTS towards equitable agriculture development EAD MTS Trade Opportunities EnablingEnvironment

  9. EAD Continued… • Equitable Agricultural Development entails: • Reformed international and regional trade disciplines in agriculture; • Increased investment to improve productivity; • Redress of agriculture related trade facilitation constraints; • Prioritizing capacity building of small and medium sized farmers and traders; • Encouraging multi-stakeholder consultations and coordination.

  10. Reaping benefits from the Multilateral Trading System… …towards and enabling environment for equitable agricultural development

  11. Towards an enabling environment: Reformed Int. Trade Disciplines • Further reforms necessary for equitable development; • Tightening of domestic support; • Elimination of export agricultural subsidies; • Meaningful market access (DFQF); • Enhanced monitoring and survaillance mechanism

  12. Towards an enabling environment: Investment opportunities & the MTS • Increased market access and value added for EAC products will be an incentive for investment in EAC agriculture, thereby improving agricultural productivity • To ably harness new market opportunities, the EAC agriculture sector will need: • Supporting policy measures • Sufficient resource allocation • Supportive business environment • Investing in the great potential of the EAC region in ORGANIC AGRICULTURE could contribute immensely to poverty reduction

  13. Towards an enabling environment: Trade Facilitation & the MTS • Trade facilitation constraints hinder effective participation in MTS, with factors such as: • Trade infrastructure constraints (transport networks, storage facilities etc.) • Fragmented and imperfect markets • Inefficient and cumbersome border procedures • Redressing these constraints will contribute to an enabling environment towards EAD

  14. Towards an enabling environment: Redressing TF constraints • A number of initiatives undertaken to redress these constraints in the region include:

  15. Towards an enabling environment: Building stakeholders’ capacities • Smallholder farming practices in most EAC • Agriculture a way of life for self-consumptionratherthan commercial • Need for capacity building for SMS farmers  Capacity building needs of farmers and traders: - More and better information about the potential of trade and trading opportunities for them • - Training in better farming practices for improved productivity • - Information about rules and requirements to conform with STAKEHOLDER INVOLVEMENT IN WTO TRAININGS Governments should select stakeholders from all sectors to participate in Training Workshops provided by the WTO

  16. Towards an enabling environment: Encouraging dialogue • Multi-stakeholder consultative forums in policy-making processes would ensure: • Reality-linked policies • Ownership by the society, leading to more effective implementation • Trust-building and knowledge-sharing among and between all stakeholder groups • EAC MULTI-STAKEHOLDER COORDINATION MECHANISM would: • Foster mutual learning about utilizing the potential benefits of trade policy • Facilitate better interactions between national and international processes

  17. Specific stakeholder constraints • Inefficient marketing systems and market availability • No access to financial services • Reliance on weather conditions • Poor quality extension services • Affordability of inputs • Poor infrastructure (transport, storage, irrigation, comm…) • Farmer capability • Policy frameworks and government actions

  18. Conclusion • The MTS presents opportunities for EAD in the EAC HOWEVER… • The constraints faced by the agro-sector need to be redressed for the region to effectively harness the opportunities

  19. Thank you ! 37-39, Rue de Vermont1202 Geneva, SwitzerlandPh: +41.22.734.6080Fax:+41.22.734.3914Email: geneva@cuts.orgWeb: http://www.cuts-grc.org/

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