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FOSTERING EQUITY AND ACCOUNTABILITY IN THE TRADING SYSTEM (FEATS )

FOSTERING EQUITY AND ACCOUNTABILITY IN THE TRADING SYSTEM (FEATS ). ROLE OF THE MINISTRY OF AGRICULTURE IN THE TRADE POLICY MAKING PROCESS BY MoAFS. PRESENTATION OUTLINE. INTRODUCTION OBJECTIVES APPROACH TO DEVELOPING THE PAPER TRADE POLICY MAKING INSTITUTIONS IN MALAWI

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FOSTERING EQUITY AND ACCOUNTABILITY IN THE TRADING SYSTEM (FEATS )

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  1. FOSTERING EQUITY AND ACCOUNTABILITY IN THE TRADING SYSTEM (FEATS) ROLE OF THE MINISTRY OF AGRICULTURE IN THE TRADE POLICY MAKING PROCESS BY MoAFS

  2. PRESENTATION OUTLINE • INTRODUCTION • OBJECTIVES • APPROACH TO DEVELOPING THE PAPER • TRADE POLICY MAKING INSTITUTIONS IN MALAWI • MoA AND TRADE POLICY DEVELOPMENT IN MALAWI • BENEFITS OF A STAKEHOLDER-WIDE CONSULTATIVE TRADE POLICY MAKING PROCESS. • MAJOR ISSUES OF PARTICIPATORY PROCESSES IN THE TRADE POLICY MAKING • RECOMMENDATIONS

  3. 1. INTRODUCTION ROLE OF AGRICULTURE IN MALAWI’S ECONOMY • Contributes 38% to GDP. • Employs 85% of workforce. • Contributes 90% to foreign exchange. • Government’s aim increase agricultural productivity & profitability • For equitable household food security, income and employment and sustainable utilization of natural resources

  4. 1. INTRODUCTION ROLE OF AGRICULTURE IN MALAWI’S ECONOMY • 1987 agricultural markets liberalisation, beginning of government company privatization. • Increase economic efficiency for promoting trade. • Malawi’s trade performance dismal with a negative visible trade balance. • Reflects skewed trade benefits between trading partners. • Formulation and application of trade policies and strategies for equitable distribution of trade benefits. • Mejn with Cuts implement FEATS to raise awareness for better coherence between development & trade policies.

  5. 2. OBJECTIVES OF THE PAPER Over all objective was to evaluate extent MoA is consulted in trade policy making process in Malawi. Specifically, • Identified trade policy development stages MoA is involved in Malawi. • Identified the nature of response of the MoA to new trade policies of the MoIT. • Outlined benefits of a stakeholder-wide consultative trade policy making process. • Outlined major issues in the trade policy making process in Malawi • Made some recommendations on the appropriate trade making processes.

  6. 3. APPROACH TO DEVELOPING THE PAPER • Literature based. • Used literature on trade policy development, trade policies, trade strategies, agricultural policies, agricultural economics and agricultural trade. • Literature included those from international and domestic trade related organisations.

  7. 4. Role of the MoA in Trade Policy MakingProcess Trade Policy Making Institutions in Malawi • The Malawi constitution guides trade policy making process. • Trade policy legislation • Support from Act of Parliament • Subsidiary registration • MoIT conferred with responsibility to make trade policies • Tariffs are the main Malawi’s trade measure in the context of its trade policies.

  8. 4. Role of the MoA in Trade Policy MakingProcess Trade Policy Making Institutions in Malawi • Other trade measures: SPS, customs inspection and clearance, customs valuation, duties, import taxes, and export taxes • MoIT also negotiates and implements multilateral, regional and bilateral trade arrangements. • MoIT does it through MoFAIC • Other ministries participate through IMCs & Regional Working Groups

  9. 4. Role of the MoA in Trade Policy MakingProcess Trade Policy Making Institutions in Malawi • IMCs & RWG include: SADC-NWGN, Agriculture cluster & NWGTP among others. • IMCs also provide technical expertise and recommendations on multilateral, regional and bilateral trade arrangements. • SADC-NWGN specifically provides a consultative public/private sector forum for examining the Malawi-SADC trade issues. • Agriculture cluster examines SPS measures in COMESA and between EU and COMESA countries.

  10. 4. Role of the MoA in Trade Policy MakingProcess Trade Policy Making Institutions in Malawi • NWGTP advises government on all trade related legislative and policy matters. • It also provides a framework for monitoring and evaluating the implementation of Malawi’s trade agreements • It also provides a framework for ensuring conformity with the agreed rules • It facilitates consultation and cooperation among the private and public sector parties to promote trade

  11. 4. Role of the MoA in Trade Policy MakingProcess MoA and Trade Policy Development • MoA consulted during trade policy diagnostic survey planning. • It is also consulted at implementation-data collection and stakeholder consultation workshops. • This helps to assess potential impact of trade policies on agriculture. • But provides minimal ownership of policy making process to MoA.

  12. 4. Role of the MoA in Trade Policy MakingProcess MoA and Trade Policy Development • At formulation/review stage, MoA consulted on Competition & Trade Policies, Export Strategy, SADC & COMESA Market Integration Agenda, AGOA and WTO Policies. • MoA achieves it by attending IMCs and NWGTP preparatory sessions. • MoA also responds to interviews on trade policy formulation/reviews by consultants. • MoA is also a member of the SADC-NWGN and attends all the necessary sessions on trade policy formulation/review it organises.

  13. 4. Role of the MoA in Trade Policy MakingProcess MoA and Trade Policy Development • COMESA recent consultation was on Agricultural Trade in Relation to Tariff and Non-tariff Barriers in COMESA. • A major weakness of the approach has been slow & inadequate feedback from secretariats. • As for on going EPA discussions, MoA chairs the Agriculture Cluster that reviews SPS measures. • Thus MoA directs country’s position on SPS measures. • It also participates in issues that involve food standards handled by the Malawi Bureau of Standards

  14. 4. Role of the MoA in Trade Policy MakingProcess MoA and Trade Policy Development • MoA also a member of EPA Market Access & Development Clusters. • Under Market Access MoA has been involved in revising a list of sensitive products for Malawi. • ESA sensitive products will be exempted from reciprocal liberalisation to boost their revenue capacities, local agro-industrial development and food security.

  15. 4. Role of the MoA in Trade Policy MakingProcess MoA and Trade Policy Development • MoA recent trade policy review consultations in which the MoA participated for WTO was in 2007. • This was on measures of tariff, customs and legislation. • And how these affect the productivity of the agriculture sector. • MoA not served with a copy of report for a comprehensive analysis and provision of feedback • MoA participation varies from one senior rank to another. • Both preparatory sessions and consultations are either handled by Assistant Directors, Directors or PS. • At times these are handled by the minister of agriculture

  16. 4. Role of the MoA in Trade Policy MakingProcess MoA and Trade Policy Development • At regional level, Minister of Agriculture is a member of the Council of Ministers of COMESA and SADC. • These act upon recommendations from the Trade Technical Committees. • Council of Ministers make recommendations to the Summit of Heads of States. • Summit discusses, reviews and approves policy proposals for implementation. • Drawback is COMESA & SADC do not have regional parliament to legislate and register regional trade measures.

  17. 4. Role of the MoA in Trade Policy MakingProcess MoA and Trade Policy Development • MoA participates in implementation, monitoring and evaluation of the trade policies through the IMCs and NWGTP. • IMCs and NWGTP organises regular review sessions. • Usually such meetings mobilize progress reports from various sectors for consolidation. • IMC consolidates for SADC or COMESA Annual Summits or Special Progress Review Meeting. • MoA contributes a chapter to such reports.

  18. 4. Role of the MoA in Trade Policy MakingProcess MoA and Trade Policy Development • MoA occasionally makes some self initiatives in developing comments and views on trade policy issues. • MoA made comments on assigning roles of institutions in the NWGTP. • MoA submitted comments to the MoIT on the list of sensitive products. • MoA compiled comments on the development of COMESA Regional SPS Laboratories.

  19. 4. Role of the MoA in Trade Policy MakingProcess Benefits of a Stakeholder-Wide Consultative Trade Policy Making Process • Sustains trade liberalisation as frequent interactions enhance understanding of the process. • Engenders sense of ownership of the policies and programmes. • Legitimates the policies resulting from process. • Promotes accountability

  20. 4. Role of the MoA in Trade Policy MakingProcess Major Issues of Participatory Processes in the Trade Policy Making • Pressure on technical, time and monetary resources. • Complex and difficult to manage & operate. • Little opportunity to build up a relationship of trust. • Donor driven technical assistances tend to concentrate on donor priorities. • Inadequate coordination on the part of government institutions.

  21. 5. Recommendations • MoEPD should take a leading role by working hand in hand with the sector ministries. • Technical assistance should be designed to transfer skills and knowledge to government officials and not under capacitating them. • Strengthen coordination amongst government institutions by putting in place an independent government institution to coordinate. • Increase capacity through increased human resources, utilization of available human resources and adequate financial resources

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