Africa and International Trade: A Primer for Cancun and Beyond
Summary
The document examines Africa's position within the Doha Development Agenda, emphasizing the critical need for agricultural reform to eliminate trade-distorting subsidies in the US and EU. It details the challenges African nations face, including supply-side constraints, high tariffs (tariff peaks and escalation), and limited negotiating capacity. The report advocates for strategic alliances with the Cairns Group and other developing nations, while highlighting specific legal challenges, such as the fight against cotton subsidies and the effort to secure access to generic medicines under TRIPS.
Key insights
- Agricultural subsidies in developed OECD countries create massive market distortions, with annual spending estimated at $318 billion, which is more than the total annual production of goods and services in sub-Saharan Africa.
- African countries face significant trade barriers through 'tariff peaks' on competitive goods like textiles and clothing, and 'tariff escalation,' where higher duties are placed on processed goods than on raw materials to discourage value-added production.
- Despite having duty-free access to some markets, African nations often fail to utilize quotas due to supply-side constraints, including an inability to meet strict sanitary and phytosanitary (SPS) standards and poor infrastructure.
- A critical agreement reached in August 2003 allows developing countries lacking manufacturing capacity to import cheaper generic versions of vital medicines, bypassing certain TRIPS restrictions to address public health emergencies.
- Four West African states (Mali, Burkina Faso, Chad, and Benin) joined Brazil in a WTO legal challenge against US and EU cotton subsidies, arguing that these subsidies impoverish African farmers and threaten food security.
- African nations are generally opposed to launching negotiations on the 'Singapore Issues' (investment, competition policy, transparency in government procurement, and trade facilitation) until developmental concerns and agricultural reforms are addressed.
- The 'single undertaking' principle, where 'nothing is agreed until everything is agreed,' is viewed as controversial because it can bind developing countries to unacceptable agreements in exchange for concessions in other areas.
- Africa's negotiating power is hampered by a lack of technical manpower and experienced experts compared to the large delegations fielded by developed nations.
- The African Union's common position, established in the Mauritius Ministerial Declaration, emphasizes the need for 'special and differential treatment' (SDT) to be more binding and operational rather than based on 'best endeavour' promises.
Cite the original document
- APA
- Gruzd, S. (2003). Africa and International Trade: A Primer for Cancun and Beyond. South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2013/06/tradeprimerprecancun.pdf
- Chicago
- Gruzd, Steven. Africa and International Trade: A Primer for Cancun and Beyond. South African Institute of International Affairs, 2003. https://saiia.org.za/wp-content/uploads/2013/06/tradeprimerprecancun.pdf.
- Wikipedia
- {{cite report |last1=Gruzd |first1=Steven |title=Africa and International Trade: A Primer for Cancun and Beyond |publisher=South African Institute of International Affairs |date=September 2003 |url=https://saiia.org.za/wp-content/uploads/2013/06/tradeprimerprecancun.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{gruzd2003africa, author = {Gruzd, Steven}, title = {{Africa and International Trade: A Primer for Cancun and Beyond}}, institution = {South African Institute of International Affairs}, year = {2003}, month = sep, url = {https://saiia.org.za/wp-content/uploads/2013/06/tradeprimerprecancun.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }
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