Climate, Food, Trade - CUTS Geneva Manual-Kenya.pdf · Climate, Food, Trade: ... The training...

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Climate, Food, TradeClimate, Food, TradeClimate, Food, TradeClimate, Food, Trade Developing Coherent Policies Developing Coherent Policies Developing Coherent Policies Developing Coherent Policies

and Programmesand Programmesand Programmesand Programmes in Kenyain Kenyain Kenyain Kenya

KENYA TRAINING

Training Manual

CCCCover image: over image: over image: over image: tagxedo.com ©©©© CUTS International, trapca. 2013 The material in this publication may be reproduced in whole or in part and in any form for education or non-profit uses, without special permission from the copyright holders, provided acknowledgment of the source is made. The publishers would appreciate receiving a copy of any publication, which uses this publication as a source. No use of this publication may be made for resale or other commercial purposes without prior written permission of CUTS.

AUTHORAUTHORAUTHORAUTHOR

Trade Policy Training Centre in Africa (trapca)Trade Policy Training Centre in Africa (trapca)Trade Policy Training Centre in Africa (trapca)Trade Policy Training Centre in Africa (trapca) ESAMI Hill, ESAMI Road, PO Box 3030 Arusha, Tanzania Ph: +255 732 972 202 | Fax: +255 272 508 285 Email: [email protected] | Web: www.trapca.org

PUBLISHED BYPUBLISHED BYPUBLISHED BYPUBLISHED BY

CUTS CUTS CUTS CUTS International, GenevaInternational, GenevaInternational, GenevaInternational, Geneva 37-39, Rue de Vermont 1202 Geneva, Switzerland Ph: +41.22.734.6080 | Fax:+41.22.734.3914 Email: [email protected] | Web: www.cuts-geneva.org

FUNDING SUPPORTFUNDING SUPPORTFUNDING SUPPORTFUNDING SUPPORT

Swedish International Swedish International Swedish International Swedish International Development Cooperation Agency (Sida)Development Cooperation Agency (Sida)Development Cooperation Agency (Sida)Development Cooperation Agency (Sida) Address: SE-105 25 Stockholm, Sweden Visiting address: Valhallavägen 199. Ph: +46 (0)8-698 50 00 | Fax: +46 (0)8-20 88 64. Email: [email protected] | Web: www.sida.se

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MODULE 1MODULE 1MODULE 1MODULE 1


TABLE OF CONTENTTABLE OF CONTENTTABLE OF CONTENTTABLE OF CONTENT

Acknowledgements ................................................................................... iii

Acronyms and Abbreviations .................................................................... iv

Introduction ................................................................................................. 1

ISSUE ANALYSIS AISSUE ANALYSIS AISSUE ANALYSIS AISSUE ANALYSIS AND NATIONAL CONTEXTND NATIONAL CONTEXTND NATIONAL CONTEXTND NATIONAL CONTEXT ........................................................................................................................ 4444

Basic concepts, definitions od climate change, food security and trade concepts ....................................................................................................... 6 Status of Climate Change, Food Security, and Trade in Kenya ............... 14 Climate, Food, Trade: The Nexus ............................................................. 25

References ................................................................................................. 30

NATIONAL AND REGIONAL POLICIESNATIONAL AND REGIONAL POLICIESNATIONAL AND REGIONAL POLICIESNATIONAL AND REGIONAL POLICIES .................................................................................................................................................................................... 34343434

Climate change policies ............................................................................ 35

Trade Policy .............................................................................................. 45 Food security policy .................................................................................. 52

Climate Change-Food Security-Trade policy linkages ............................ 56

References ................................................................................................. 59

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Training Manual � Climate, Food, Trade: Developing Coherent Policies and Programmes



INTERNATIONAL INSTITUTIONS, AGREEMENTINTERNATIONAL INSTITUTIONS, AGREEMENTINTERNATIONAL INSTITUTIONS, AGREEMENTINTERNATIONAL INSTITUTIONS, AGREEMENTS AND S AND S AND S AND

INSTRUMENTSINSTRUMENTSINSTRUMENTSINSTRUMENTS .................................................................................................................................................................................................................................................................................................................................................................................................................... 62626262

International Institutions ........................................................................... 63

The United Nations Framework Convention on Climate Change ............ 63

The World Trade Organisation ................................................................. 76

Food and Agriculture Organisation .......................................................... 88

References ................................................................................................. 93

A SIMULATION EXERCISEA SIMULATION EXERCISEA SIMULATION EXERCISEA SIMULATION EXERCISE ........................................................................................................................................................................................................................................................................................................ 97979797

Contribution to the Development of New and/or Refinement of Existing CCFST Policy Regimes ............................................................................ 98

Exercise 1 .................................................................................................. 98 Exercise 2 .................................................................................................. 99

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ACKNOWLEDGEMENTSACKNOWLEDGEMENTSACKNOWLEDGEMENTSACKNOWLEDGEMENTS

The training programme on “Promoting Agriculture-Climate-Trade linkages in the East African Community (PACT EAC)”, including the regional and country specific manuals were developed with the financial assistance from CUTS International, Geneva. CUTS International Geneva provided guidelines for the development of the training manuals having coordinated country training needs assessment in each of the individual EAC Partner State countries of Burundi, Kenya, Rwanda, Tanzania, and Uganda. The training programme’s local country partners including ADIR Burundi; ESRF Tanzania; CUTS ARC Nairobi, Kenya; ACORD Rwanda and SEATINI Uganda also undertook individual EAC country studies on climate change-food security-trade (CC-FS-T) linkages, which informed the current training manual. The manuals have been reviewed according to the feedback from the stakeholders during the first set of training workshops. We are grateful to all of those that have contributed during different phases of the manual development. We are also indebted to the following trapca faculty who prepared the training manuals: Dr. Mary Mbithi and Dr. Godwell Nhamo. Our greatest gratitude goes to CUTS for the financial support and continuous guidance during the development of the training manuals.

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ACRONYMS AND ABBREVIACRONYMS AND ABBREVIACRONYMS AND ABBREVIACRONYMS AND ABBREVIATIONSATIONSATIONSATIONS AAUs Assigned Amount Units

AGOA African Growth and Opportunity Act

ARDP Agriculture and Rural Development Policy

CAADP Comprehensive Africa Agricultural Development Programme

CC-FS-T Climate change-food security-trade

CDM Clean Development Mechanism

CER Certified emission reduction

CET Common External Tariffs

CO2 Carbon dioxide

COMESA Common Market for Eastern and Southern Africa

CSOs Civil Society Organizations

CTE Committee on Trade and the Environment

EAC East African Community

EACCCP East African Community Climate Change Policy

EBA Everything But Arms

ECCAS Economic Community of Central African States

ECGLC Economic Community of the Great Lakes Countries

EPAs Economic Partnership Agreements

EPZ Export Processing Zone

ERUs Emission Reduction Units

FAFS Framework for African Food Security

FAO Food and Agriculture Organization

FNDPC National Forum for Development and Trade Policy

FTA Free Trade Area

GATT Agreement on Tariffs and Trade

GCF The Green Climate Fund

GEF Global Environment Facility

GEMIT Environmental Measures and International Trade

GSP Generalized System of Preferences

IPCC Intergovernmental Panel on Climate Change

JI Joint Implementation

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LDC Least developed countries

LULUCF Land use, land-use change and forestry

MFN Most Favored Nation

MUB Manufacturing Under Bond

NAPA National Adaptation Programme of Action

NEPAD New Africa’s Partnership for Development

NTBs Non-Tariff Barriers

NTMs Non-Tariff Measures

PACT Promoting Agriculture-Climate-Trade

PRSP Poverty Reduction Strategy Paper for the country

REDD Reducing Emission from Deforestation and Forest Degradation

REDD+ Reducing Emissions from Deforestation and Forest Degradation plus

SNA National Agricultural Strategy

TBT Technical barriers to Trade

UNEP United Nations Environmental Programme

UNFCCC United Nations Framework Convention on Climate Change

WMO World Meteorological Organisation

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INTRODUCTIONINTRODUCTIONINTRODUCTIONINTRODUCTION

BackgroundBackgroundBackgroundBackground Promoting Agriculture-Climate-Trade linkages in the East African Community (PACT EAC) National Training Programme is a project initiated by CUTS International Geneva to be undertaken at national and the regional levels in the East African Community. In the EAC food security, climate change, and trade are intimately linked. To make sure that policies in these areas are developed, reviewed, and implemented holistically, CUTS proposes to train multi-stakeholder groups through these workshops. The purpose of the training programme is to facilitate development of adequate and holistic policies addressing climate change-food security-trade (CC-FS-T) linkage in the East African Community through active involvement of representatives of all relevant stakeholders.

Objectives and rationale of the national training Objectives and rationale of the national training Objectives and rationale of the national training Objectives and rationale of the national training

programmeprogrammeprogrammeprogramme The objectives are to:

1) Increase knowledge and capacity of CCFST linkages (conceptual and policy linkages). The negative and positive linkages between CCFS, CCT, FST, CCFST in order that the stakeholders can identify their own policy solutions, make recommendations, and advocate for change.

2) Provide opportunity for stakeholders from multilateral, regional, and national levels to interact with each other and find coordinate solutions to CCFST issues. Ensure that each participant has an understanding of what kind of action/position they can take to better coordinate with other stakeholders and create coherent CCFST solutions.

3) Learn to contribute and advocate for holistic policies, programmes, and policy implementation.

The programme and the modules have been developed based on training needs assessment and on outputs of the EAC Partner State country studies on CC-FS-T linkages under the PACT EAC project conducted in individual EAC Partner countries of Burundi, Kenya, Rwanda, Tanzania, and Uganda in 2012.


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At the end of the national training, it is expected that the participants will:

1) Be able to identify climate change-food security-trade (CCFST) linkages in policies and policy implementation in their country;

2) Be able to identify holistic policy and implementation solutions to CCFST issues i.e. know how to deal with the negative linkages and how to take advantage of the positive linkages. Participants will learn ways of how to think about the solutions.

3) Be able to initiate, formulate, revise, or monitor current programmes and policies on climate change, food security, and trade linkages in your country and come up with real solutions and recommendations to concrete policy or programme issues on CCFST linkages together with different stakeholders.

The training manual structure and The training manual structure and The training manual structure and The training manual structure and methodologymethodologymethodologymethodology This training manual consists of four modules including:

Four modules

Module 1 : Concepts, definitions and status of climate change, trade and food security at the national level context and their linkages. The module contributes to the understanding of climate change-food security and trade linkages, in the context of Kenya national policies.

Module 2 : CC-FS-T policies in the national and regional context. The module contributes to the understanding of relevant national and regional policies and their linkage. Module 3 : International Institutions and Policies. The module contributes to stakeholder understanding and taking advantage of relevant international agreements and instruments dealing with CC-FS-T. Module 4 : Simulation exercise. This module contributes to stakeholder’s development of a programme / policy to deal with a concrete issue at the interface of CC-FS-T in Kenya. The above four modules are designed for delivery over a 3 day period in a highly interactive manner, making use of case studies of real country policy issues. Modules one to three will be delivered as presentations with adequate room for discussion and small exercises, while the fourth module will be developed as a practical exercise, also involving real country specific policy issue. The Kenya training manual is designed to facilitate the Kenya workshop trainer in structuring the discussion to improve the focus on trade, climate change and

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food security issues during the workshop. It will provide reference material that can inform different approaches for mainstreaming policy coherence between CC-FS-T regulatory frameworks in Kenya.


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ISSUE ANALYSIS AND ISSUE ANALYSIS AND ISSUE ANALYSIS AND ISSUE ANALYSIS AND NATIONAL NATIONAL NATIONAL NATIONAL

CONTEXTCONTEXTCONTEXTCONTEXT

Module OModule OModule OModule Objectivebjectivebjectivebjective ��

This module introduces participants to food security, trade and climate change. It provides concepts and definitions in of climate change, food security and trade (CC-FS-T); and discusses the status of these three in Kenya. The goal is to enhance understanding of the participants on issues of food security, trade and climate change and their linkages in Kenya. The objectives of the module are to:

i. Create and increase substantive understanding of issues related to CC- FS-T linkages, and how the three impact on each other

ii. Discuss the current situation on CC, FS and Trade in Kenya iii. Discuss Kenya policies and their linkages in the above three areas.

The purpose is to contribute to increased knowledge of stakeholders in climate change, food security and trade related sectors to enable them to contribute to policy making-processes; recognize contradictions, overlaps and gaps in the different policies; and become familiar with effective policy responses to deal with climate change effects on food security, Trade effects on food security, as well as climate change effects on Trade.

Learning OLearning OLearning OLearning Outcomeutcomeutcomeutcomessss ��

i. Be familiar with key definitions and concepts related CC, FS and Trade. ii. Be familiar with the status of CC, trade and food security in Kenya. iii. Understand the positive and negative linkages between climate change,

food security and trade. iv. Appreciate the need to mainstream climate change in trade and food

security policies for improved trade and food security. v. At the end of the training of this module, it is expected that participants

will have a better understanding of the current Burundi and EAC regional policies on climate change, agriculture, trade and food security. This will enable them to contribute to policy formulation, revision and make recommendations taking into account CC-FS-T linkages.


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Module ContentModule ContentModule ContentModule Content ��

The module is organized in three sections: i. Concepts and definitions ii. Status of food security, trade and climate change in Kenya iii. Climate change, Food security and Trade linkages in Kenya.


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BASIC CONCEPTSBASIC CONCEPTSBASIC CONCEPTSBASIC CONCEPTS &&&& DEFINITIONSDEFINITIONSDEFINITIONSDEFINITIONS

OFOFOFOF CLIMATE CHANGE, FOODCLIMATE CHANGE, FOODCLIMATE CHANGE, FOODCLIMATE CHANGE, FOOD

SECURITY AND TRADE SECURITY AND TRADE SECURITY AND TRADE SECURITY AND TRADE

Introduction Introduction Introduction Introduction In its simplest definition, policy is “a course or principle of action, adopted or proposed by a government, party, business or individual”. A policy states matters of principle; is focused on action, stating what is to be done and by whom and is an authoritative statement, made by a person or body with power to do so. A good policy is a tool that makes administration easier, and allows people to get on with the organization’s core business more efficiently and effectively. Public policy by extension is a course of action undertaken by government towards a specific sector.

Concepts in climate change, adaptation and Concepts in climate change, adaptation and Concepts in climate change, adaptation and Concepts in climate change, adaptation and

mitigationmitigationmitigationmitigation

Weather is the state of the atmosphere, to the degree that it is hot or cold, wet or dry, calm or stormy, clear or cloudy. Most weather phenomena occur in the troposphere just below the stratosphere. Weather refers, generally, to day-to-day temperature and precipitation activity.

Climate in a narrow sense is usually defined as the "average weather ," or more rigorously, as the statistical description in terms of the mean and variability of relevant quantities over a period of time ranging from months to thousands of years. The classical period is 3 decades, as defined by the World Meteorological Organization (WMO). These quantities are most often surface variables such as temperature, precipitation, and wind. Climate in a wider sense is the state, including a statistical description, of the climate system.

Climate Variability refers to variations in the mean state and other statistics (such as standard deviations, statistics of extremes, etc.) of the climate on all temporal and spatial scales beyond that of individual weather events. Variability may be due to natural internal processes within the climate system (internal variability), or to variations in natural or anthropogenic external forcing (external variability).

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Climate change refers to change in the state of the climate that can be identified (e.g., by using statistical tests) by changes in the mean and/or the variability of its properties and that persists for an extended period, typically decades or longer. Climate change may be due to natural internal processes or external forcing, or to persistent anthropogenic changes in the composition of the atmosphere or in land use.

Adaptation to climate change refers to actions taken to reduce vulnerability to actual or expected changes in climate. This includes all in natural or human systems in response to actual or expected climatic stimuli or their effects, which moderates harm or exploits beneficial opportunities. Various types of adaptation can be distinguished, including anticipatory and reactive adaptation, private and public adaptation, and autonomous and planned adaptation. Vulnerability is the degree to which a system is susceptible to, and unable to cope with, adverse effects of climate change, including climate variability and extremes. Vulnerability is a function of the character, magnitude, and rate of climate change and variation to which a system is exposed, its sensitivity, and its adaptive capacity. Mitigation refers to actions undertaken to reduce the sources or increase the sinks of greenhouse gases. It includes strategies to reduce greenhouse gas sources and emissions and enhancing greenhouse gas sinks. Climate mainstreaming refers to the incorporation of initiatives, measures, strategies to reduce vulnerability to climate change into other existing policies, programs, resource management structures, and other livelihood enhancement activities, so that adaptation to climate change becomes part of, or consistent with, other sectoral programs. REDD (Reducing Emissions from Deforestation and For est Degradation) refers to actions designed to use market and financial incentives to reduce greenhouse gas emissions from deforestation and forest degradation. Because the goal of REDD is to reduce carbon in the atmosphere, it is considered a mitigation strategy.

Kyoto mechanisms are additional means (additional to national measures) flexibilities for countries with green house gas emission reduction commitments under Kyoto Protocol to meet their emission targets. As an additional means of meeting these targets, the Kyoto Protocol introduced three market-based mechanisms namely: Emissions Trading, the Clean Development Mechanism (CDM) and the Joint Implementation (JI). These mechanisms aim to:

• Stimulate sustainable development through technology transfer and investment.

Key concepts in climate change adaptation and

food security

Planting method and time

Rainfall intensity

Humidity


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• Help countries with Kyoto commitments to meet their targets by reducing emissions or removing carbon from the atmosphere in other countries in a cost-effective way.

• Encourage the private sector and developing countries to contribute to emission reduction efforts.

Emission trading: Parties with emission reduction commitments under the Kyoto Protocol (Annex B Parties) accepted targets for limiting or reducing emissions. These targets were expressed as levels of allowed emissions, or “assigned amounts,” over the 2008-2012 commitment period. The allowed emissions are divided into “assigned amount units” (AAUs). Emissions trading, (Article 17 of the Kyoto Protocol), allows countries that have emission units to spare - emissions permitted them but not "used" - to sell this excess capacity to countries that are over their targets, thus creating a new commodity in the form of emission reductions or removals. Since carbon dioxide is the principal greenhouse gas, people speak simply of trading in carbon .

Carbon market is the trading of carbon. This trading can be in the form of:

i. Actual emission units. ii. Other units which may be transferred under any of the schemes below,

each equal to one tonne of CO2: A removal unit (RMU) on the basis of land use, land-use change and forestry (LULUCF) activities such as reforestation,

iii. An emission reduction unit (ERU) generated by a joint implementation project, A certified emission reduction (CER) generated from a clean development mechanism (CDM) project activity.

iv. An emission reduction unit (ERU) generated by a joint implementation project, A certified emission reduction (CER) generated from a clean development mechanism (CDM) project activity.

The Clean Development Mechanism (CDM) is one of the flexibilities of the Kyoto Protocol, allows a country with an emission-reduction or emission-limitation commitment under the Kyoto Protocol (commonly referred to as Annex B Party) to implement an emission-reduction project in developing countries. Such projects can earn saleable certified emission reduction (CER) credits, each equivalent to one tonne of CO2, which can be counted towards meeting Kyoto targets. Kenya as is the case with most developing countries did not make emission reduction commitments under Kyoto Protocol and is thus a Non-Annex B Party to the Protocol. Joint Implementation (JI) : This Kyoto mechanism allows a country with an emission reduction or limitation commitment under the Kyoto Protocol (Annex B Party) to earn emission reduction units (ERUs) from an emission-reduction or emission removal project in another Annex B Party, each equivalent to one tonne of CO2, which can be counted towards meeting its Kyoto target. Joint

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implementation offers Parties a flexible and cost-efficient means of fulfilling a part of their Kyoto commitments, while the host Party benefits from foreign investment and technology transfer.

Concepts and definitions in food securityConcepts and definitions in food securityConcepts and definitions in food securityConcepts and definitions in food security FAO (2006) defines food security as the situation that exists when all people, at all times, have physical and economic access to sufficient, safe, and nutritious food, enabling them to meet their dietary needs and food preferences for an active and healthy life. This definition entails four dimensions of food security as illustrated in Figure 2.1: Figure 2.1: Concept of food security

Source: Adapted from Schoeneberger and al.; (1990).

Sta

bilit

y

Food security

Food Utilization

Accessibility

Availability


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Dimensions of Food Security

Availability : This refers to sufficient quantities of food of appropriate quality being at disposal to people. Availability of food can be achieved through domestic production, imports or through food aid.

Accessibility : This is ensured when households and all the individuals within the household, have physical, economic and/or social means to access food. The distance and access to markets , economic capacity and food aid are crucial factors in contributing to access to adequate food. Utilization : This refers to the proper and healthy use of food. The diet should provide sufficient energy and essential micronutrients to combat “hidden hunger”. The availability of clean water, adequate sanitation (including food safety, sanitary and phytosanitary, SPS) and good health of the citizens are key factors in the effective utilization of food. Stability : The concept of stability refers to the factors that aim at ensuring stable availability , access and the utilization of food. Food insecurity: This refers to the absence of food security as is exhibited by famines and food emergencies brought about by several factors including decline in food production. Food insecurity has a temporal dimension. Chronic (or long-term) food insecurity : This occurs when a population has continuously inadequate consumption. Chronic food insecurity arises from conditions of poor food production, limited incomes and poor health. Current (or transitory) food insecurity: This occurs when a population suffers a temporary decline in consumption. This can be as a result of instability in food production, food prices, household incomes and health conditions. Food insecurity is evidenced by a wide range of phenomena including famine or periodic hunger and uncertain food supply. Concepts of hunger include:

• Consumption of fewer than about 1,800 kilocalories a day the minimum that most people require to live a healthy and productive life.

• Under-nutrition, which is as a result of inadequate intake of food in terms of either quantity or quality – or poor utilization of nutrients due to infections or other illnesses, or a combination of these two factors. Under nutrition signifies deficiencies in energy, protein, essential vitamins and minerals, or any or all of these.

• According to FAO, malnutrition is an abnormal physiological condition caused by inadequate, unbalanced or excessive consumption of macronutrients and/or micronutrients. Malnutrition includes under-nutrition and over-nutrition as well as micronutrient deficiencies.

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• Chronic hunger is a constant or recurrent lack of food and results in underweight and stunted children, and high infant mortality.

Concepts and definitions related to tradeConcepts and definitions related to tradeConcepts and definitions related to tradeConcepts and definitions related to trade

International trade is the exchange of goods, services and capital across national borders. Export Diversification : Export diversification is variously defined as the change in the composition of a country’s existing export product mix or export destination or as the spread of production over many sectors. Tariff is a tax imposed on a good imported into a country. A tariff may be specific, when it is levied as a fixed sum per unit of the imported good, or ad valorem, when it is applied at a percentage rate with reference to the value of the import.

Non-tariff measures (NTMs) include all policy-related trade costs incurred from production to final consumer, with the exclusion of tariffs. They are categorized depending on their scope and/or design and are broadly distinguished in technical measures (such as SPS measures, TBTs and pre-shipment inspections) and non-technical measures.

These are further distinguished in hard measures (e.g. price and quantity control measures), threat measures (e.g. anti-dumping1 and safeguards2) and other measures such as trade-related finance and investment measures. NTMs measures have the potential to distort international trade, whether their trade effects are protectionist or not. For example, measures such as quality standards, although generally imposed without protectionist intent, may affect traders who are limited in capacity to comply with them.

Non-Tariff Barriers (NTBs) refer to restrictions that result from prohibitions, conditions, or specific market requirements that make importation or exportation of products difficult and/or costly. NTBs also include unjustified and/or improper

1 A counter dumping measure undertaken by one country (importing country) when another country exports their goods at below the normal value or market price of the respective goods. 2 Safeguard are emergency measures against injurious imports normally inform of higher tariffs, tariff quotas, or quantitative restrictions. They are taken by an importing country if concerned imported products are in increased quantities to the extent that they cause or threaten to cause serious injury to the domestic industry.


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application of Non-Tariff Measures (NTMs) such as sanitary and phytosanitary (SPS) measures and other technical barriers to Trade (TBT).

NTBs arise from different non-tariff measures (NTMs) taken by governments and authorities in the form of government laws, regulations, policies, conditions, restrictions or specific requirements, and private sector business practices, or prohibitions that protect the domestic industries from foreign competition.

Regional trading arrangements is an agreement among governments to liberalize trade and possibly to co-ordinate other trade related activities. There are four principal types of regional trading arrangements a: free trade area; customs union; common market; and an economic union. Trade liberalization or Free Trade refers to interchange of commodities across political boundaries without restrictions such as tariffs, quotas, or foreign exchange controls. This economic policy contrasts with protectionist policies that use trade restrictions to protect or stimulate domestic industries. Customs Unions are arrangements among countries in which the parties do two things: (1) agree to allow free trade of products within the customs union, and (2) agree to a common external tariff (CET) with respect to imports from the rest of the world. Customs unions and preferential trade arrangements, more generally, have become increasingly important in recent years. Common external Tariff (CET) is a uniform duty rate (customs duty) adopted by members of a Customs union and charged on imports from countries which are not a part of the Customs union. Common Market is a customs union with provisions to liberalize movement of regional production facts (people and capital). A free trade area (FTA) is a grouping of countries within which tariffs and non-tariff trade barriers between the members are generally abolished but with no common trade policy toward non-members. Trade preference is a policy of admitting imports from one or more countries at lower (perhaps zero) tariffs than apply to otherwise comparable imports from other countries. Preferences are extended by granting country or countries to beneficiary countries. An example of a trade preference is the Generalized System of Preferences (GSP) which is extended by many developed countries to developing countries. Rules of origin (ROO) are defined as the criteria used to define where a product was made. They are an essential part of trade rules because a number of policies discriminate between exporting countries: quotas, preferential tariffs, anti-dumping actions, countervailing duty (charged to counter export subsidies), among others. Rules of origin are broadly divided into two categories:

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• Preferential rules of origin are used in a preferential trading arrangement to avoid trade deflection.

• Non preferential rules of origin : these are used for purpose of compiling trade statistics, and for “made in ...” labels that are attached to products. They are also used in implementing trade policy instruments such as anti-dumping and countervailing duties and safeguard measures.

Most favored nation (MFN) principle is a principle of nondiscrimination embodied in Article 1 of the General Agreement on Tariffs and Trade (GATT), whereby any concession or privilege granted by one contracting party to GATT to a product of another contracting party will be unconditionally granted to the like product of all other contracting parties.


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STATUS OF CLIMATE CHSTATUS OF CLIMATE CHSTATUS OF CLIMATE CHSTATUS OF CLIMATE CHANGE, FOOD ANGE, FOOD ANGE, FOOD ANGE, FOOD

SECURITY, AND INTERNSECURITY, AND INTERNSECURITY, AND INTERNSECURITY, AND INTERNATIONAL ATIONAL ATIONAL ATIONAL

TRADE IN KENYATRADE IN KENYATRADE IN KENYATRADE IN KENYA

Status of Climate Change in KenyaStatus of Climate Change in KenyaStatus of Climate Change in KenyaStatus of Climate Change in Kenya Indicators of climate change in Kenya include increased climatic extremes including floods and droughts, large diurnal temperature variations and increased greenhouse gas emissions among others. Extreme climatic events are associated with disasters and increase in incidences of diseases. Incidences of vector and water-borne diseases have increased during periods of heavy rains and flooding, while droughts and high temperatures have led to frequent famines.

Green House Gas (GHG) emission, the main cause of climate, has been on an increasing trend in Kenya as shown in Table 2.1.

Table 2.1: Trends in main greenhouse gas emission in Kenya and EAC Partner State countries

Source: World Bank (2013) - World Development Indicators 2013 (http://wdi.worldbank.org/table/3.9)

Emission of Carbon dioxide gas has increased most over the last decade as compared to methane and nitrous oxide emission. Livestock, agriculture and forestry sectors are the largest emitters in Kenya, accounting for approximately 67 per cent of emissions in 2010. Agricultural sector emits about 30 percent of all the GHG emissions, with about 90 per cent of these emissions being generated by the livestock sector. Kenya’s GHG emissions are expected to rise with the growth of the country’s population and expanding economy. By 2030, emissions are expected to increase from the current levels of over 50 million tonnes of carbon dioxide

Country Carbon dioxide emissions (2010)

Methane emissions (2010) Nitrous oxide emissions (2010)

Total ’000 MT

change since 1999

Total’000 MT CO2 eqv.

Change since 1990

Energy and indus. % total

Agri. % of total

Total’000 MT CO2 eqv.

change since 1990

Energy and industry % of total

Agri % of total

Burundi 308 1.2% .. .. .. .. .. .. .. ..

Kenya 12427 113.4% 27477 35.2% 29.6% 53.9 11364 22.4% 6% 86.9%

Rwanda 594 -12.9% .. .. .. .. .. .. .. ..

Tanzania 6846 188.6% 27445 2.1% 25.4% 57.1 12948 -39% 5.2% 82.7%

Uganda 3784 371.2% .. .. .. .. .. .. .. ..

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equivalent (Mt Co2 in 2010) to over 102 MtCo2. The largest absolute growth in emissions is expected in energy and transport sectors, with energy emissions being projected to increase from 10 Mt Co2 in 2010 to 33 MtCo2 in 2030 and transport sector emissions increasing by about three times in the same period (Republic of Kenya, 2013). In Kenya, climate change is evidenced by Kinguyu et al general warming over land areas with cooling over coastal areas and near large water bodies. A reduction in cold extremes over the drier areas has also been observed. Rainfall trends show mixed signals with some indications of increasing trends in recent years, while majority do not show any significant trends. Floods and droughts have increased in the country and drought cycle has contracted from ten to about 10 years to about 2 years. In general, evidence of climate change in Kenya is evidenced by drought and water scarcity, flooding and sea-level rise. Table 2.2 shows trends in minimum and maximum temperature changes in various regions of Kenya since 1960 as reported in the National Climate Change Response Strategy (Government of Kenya, 2010). Table 2.2: Trends in minimum and maximum temperatures in various regions of Kenya since 1960

Region Trend Magnitude ( oC) Minimum temperatures

Western Increase 0.8-2.9 Northern & North-eastern

Increase 0.7-1.8

Central Increase 0.8-2.0 South Eastern districts Increase 0.7-1.0 Coastal strip Decrease 0.3-1.0

Maximum temperatures Western Increase 0.5-2.1 Northern & North-eastern

Increase 0.1-1.3

Central Increase 0.1-0.7 South Eastern districts Increase 0.2-0.6 Coastal strip Increase 0.2-2.0

Source: Government of Kenya (2010).

There is a general positive trend (increase) in rainfall events of September to February showing a tendency for the short rains of October to December season to be extending into the hot and dry period of January and February over most areas in the country. This may be attributed to possibly more frequent occurrences of El-Niño events occasionally coupled with relatively


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warmer sea surface temperatures over the western Indian ocean and relatively cooler than average sea surface temperatures on the east of the Indian Ocean. Recently observed rainfall amounts in the country are relatively lower than those of the early 1960s, and the rainfall amounts have been on a decreasing trend generally. Decreasing trends are also evident in the ‘Long Rains’ season over most parts of the country. These changes (reductions) are however not very significant. The intensity and frequency of rainfall over the coastal strip and the northern parts of the country in the September- October- November and December- January -February seasons has also been on the increase as reported by Government of Kenya (2010).

The IPCC 4th Assessment Report on climate change impacts in Kenya shows that along with warming surface waters, deep water temperatures (which reflect long-term trends) of the large East African lakes (including Lake Victoria) have warmed up by 0.2 to 0.7°C since the early 1900s. Ocean warming up has also been observed.

Projections of future climate change for Kenya (ILRI, 2010) paint a further gloomy picture of the future climate situation:

• Total annual precipitation is likely to increase by about 0.2 to 0.4 per cent per year, but semi- arid may not gain from increases in the length of growing periods and rangeland or crop productivity, as the later will be masked by increased evapo-transpiration due to rising temperatures.

• Extreme rainfall events are likely to become more intense over much of northern East Africa.

• An increase in climate variability in Kenya, leading to more than one drought every five years, is likely to cause significant and irreversible decreases in livestock numbers in the country’s arid and semi-arid lands, with severe impacts on pastoralists whose food security and livelihood depend solely on livestock.

• Climate change will likely lead to increased food imports by Kenya, which will dampen demand for food, as the affordability of nearly all agricultural commodities—including basic staples and livestock products—declines, leading to increases in malnutrition, especially of young children in the country’s highly vulnerable arid and semi-arid lands.

• As a result of climate change, Kenya could see significant areas where cropping is no longer possible and the role of livestock as a livelihood option increases.

In addition, the IPCC 4th Assessment Report on climate change impacts in Kenya shows Mangroves and coral reefs, the main coastal ecosystems will likely be affected by climate change. Endangered species associated with these ecosystems, including manatees and marine turtles, could also be at risk, along with migratory birds. Previously malaria-free highland areas could also

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experience modest changes to stable malaria by the 2050s, with conditions for transmission becoming highly suitable by the 2080s. Studies by Eitzinger et al; (2011) show that temperature rise could increase the optimum altitude for growing tea from between 1,500m and 2,100m AMSL to between 2,000m and 2,300m. This could affect production and export of tea.

● Impacts of climate change in KenyaImpacts of climate change in KenyaImpacts of climate change in KenyaImpacts of climate change in Kenya

The impacts of climate change in Kenya adversely affect all he sectors of the economy particularly agriculture, livestock and fisheries sectors. Climate change is particularly likely to impact on productivity with detrimental effects on food security and human health, in the following ways:

i. Higher temperatures are likely to directly reduce yields of desirable crops in the long-term. For example, it is estimated that parts of South West Kenya will experience reduction in the number of reliable crop growing days by the 2050s.

ii. Changes in precipitation patterns are likely to increase short-term crop failures and long-term production declines for rain-fed agriculture.

iii. Indirect impacts such as increased rates of runoff and soil erosion , and increased crop losses from wildlife migrations, insects, diseases and weeds, could significantly magnify production losses.

Manufacturing, retail and trade sectors climate-induced changes in productivity and crop diversity for Kenya key export products such as tea, coffee and vegetables, have implications for exports and type of imports into the country. For example, recent crop failure in maize resulted in the government importing 2.6 million bags between 2008 and 2009, worth KSh 6.7 billion. Coastal warming will also have adverse impact on tourism, a key leading economic sector in Kenya.

All these changes in climate will impact negatively on production and trade, and on food security.

Status of Food Security in KenyaStatus of Food Security in KenyaStatus of Food Security in KenyaStatus of Food Security in Kenya The main cause of food insecurity has generally been identified as chronic poverty. Many factors interact to create food-insecure situations: chronic poverty, low agricultural productivity, erratic changes in climate, high rates of population growth, civil conflict, poor infrastructure, ecological constraints, inappropriate economic and trade policies, limited arable land and even cultural practices developed over many years. These are not discrete, independent factors, but related elements of the food security equation (USAID, 1995). Climate change contributes to low production and therefore to less food availability. Trade measures which restrict food trade or which contribute to high food prices reduce food availability and food access respectively therefore contributing to food insecurity.


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The main cause of food insecurity in Kenya is poverty. About 46% of Kenya population lives below US $ 1per day and the country have skewed income distribution patterns, high inflation and food prices, inadequate and poor marketing strategies. Poor trade networks and cartels which control food prices also contribute to poor food affordability. There are a myriad of other factors which lead to food insecurity in the country: Limited arable land, underutilization of the arable land, declining per capita food output, high population growth rate, landlessness, urbanization, dependence on rain-fed food production, recurrent drought, low up-take of relevant farming technology, poor post-harvest strategies, inadequate and inefficient food reserves, limited value addition as well as general weaknesses along the entire value chain. Poor water harvesting and less attention to implementation of programmes to enhance food security, including budget support to the development of the agricultural sector also constrain food production and food availability. Limited availability of productive resources to women also constraint food production and therefore limit food availability. Kenya also has poor utilization of food due to over-reliance on limited foods e.g. globally, 60% of calories and proteins consumed by humans today comes from only 3 plant species; maize, wheat and rice; and 75% of our food supply comes from only 12 plants and 5 animal species. HIV+AIDs pandemic, poor sanitation, lack of awareness, cultural attitudes to different foods, media influence and low value-addition strategies of food also contribute to poor nutritional consumption of foods.

Environmental degradation and very low forest cover, climate change, overreliance on rain-fed agriculture and inadequate policy framework also contribute to food insecurity in Kenya. About half of Kenya’s over 40 million people are poor, and some 7.5 million people live in extreme poverty while over 10 million people suffer from chronic food insecurity and poor nutrition. In recent years, it is estimated that at any one time about two million people require assistance to access food. During periods of drought, heavy rains and/or floods, the number of people in need could double. Over 2 million children (35%) are stunted and the national per capita energy supply level per day is below the recommended rate of 2,250 Kcal/day per person (Government of Kenya, 2011).

In a related ranking, the IFRI’s Global Hunger Index (IFRI, 2013), Kenya scored 18 points out of 100 putting it in the range of countries with a serious hunger issue, and ranking at 51 out of 79 countries with a hunger challenge. Table 2.3 provides the scores and ranking of Kenya and other EAC Partner State countries.

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Table 2.3: Global Hunger Index Scores and Rankings for Kenya and EAC Partner State countries

Country Score/100

2013 Rank /78 1990 1996 2001 2012 2013

Burundi 31.6 35.9 38 37.1 38.8 78

Kenya 20.7 20.8 20.4 19.3 18.0 51

Rwanda 28.2 32.7 25.6 19.7 15.3 41

Tanzania 23.2 28 25.9 19.3 20.6 62

Uganda 18.7 20.3 17.3 16.1 19.2 56

Note: a country’s score is estimated by averaging the percentage of population that is undernourished, the percentage of children younger than five years old who are underweight, and the percentage of children dying before the age of five. This calculation results in a 100-point scale on which zero is the best score (no hunger) and 100 the worst. A score of <5.9 shows that the hunger situation is low; 5.0 – 9.9 show that the hunger situation is moderate; 10.0 – 19.9 shows that the hunger situation is serious; 20.0 – 29.9 shows that the hunger situation is alarming, while a score of > 30.0 shows that a country’s hunger situation is extremely alarming.

Source: IFRI (2013)

http://www.ifpri.org/sites/default/files/publications/ghi13.pdf Although from Table 2.3, Kenya’s food hunger situation has slightly improved over the last decade (as evidenced by the decreasing score), the country hunger situation is still serious and is worse than in the other developing countries.

Table 2.4 shows trends in some selected indicators of food security for Kenya and EAC Partner State countries (1990- 2011).


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Table 2.4: Some selected indicators of food security for Kenya and other EAC countries

Country 1990-92

1993-95

1996-98

1999-01

2003-05

2005-07

2008-10

2009-11

Value of food imports over total merchandise imports (%) Africa 13 15 14 12 10 9 10

Burundi 27 44 32 41 80 95 76 Kenya 18 20 21 23 15 19 27

Rwanda 46 114 57 72 63 50 57 Uganda 14 22 25 26 34 28 31

Tanzania 22 24 39 44 22 26 18

Per capita value of food production (US$ per capita)

World 240 244 255 263 276 285 299 302 Africa 150 149 157 159 170 174 178 179

Burundi 173 152 146 140 135 128 127 126 Kenya 150 139 128 134 141 158 160 160

Rwanda 168 132 140 139 152 158 183 198 Uganda 178 171 158 171 169 159 156 155

Tanzania 139 127 123 125 142 147 149 154

Share of dietary energy supply derived from cereals, roots and tubers(% of dietary energy supply)

World 56 55 54 54 52 51 51 Africa 64 65 65 64 63 63 63

Burundi 46 47 48 52 52 50 50 Kenya 55 55 56 56 57 57 55

Rwanda 49 48 44 53 55 52 51 Uganda 45 43 43 45 45 45 45

Tanzania 70 70 67 65 60 58 59

Domestic food price level (Index, using 2005 as the base year)

World 1.33 1.36 1.35 1.32 1.32 1.34 1.40 1.40

Africa 1.78 1.89 1.88 1.81 1.85 1.84 1.87 1.87

Burundi 2.11 2.18 2.20 2.20 2.08 2.20 Kenya 1.61 1.80 1.75 1.74 1.77 1.90 2.14 2.16

Rwanda 1.64 1.61 1.57 1.54 1.59 1.71 1.69 1.74

Uganda 1.56 1.54 1.58 1.68 1.60 1.68 1.76 1.90

Tanzania 1.85 1.87 1.90 1.90 1.93 1.97 2.00 2.05

Cereal food import dependence level (%)

World 14.6 14.4 13.8 15.2 15.1 16.0 Africa 26.9 27.7 25.2 29.8 28.6 30.5

Burundi 10.6 22.1 9.3 13.8 26.1 27.6 Kenya 14.3 19.1 28.2 26.4 21.7 23.7

Rwanda 11.0 47.0 17.4 19.6 18.5 23.7 Uganda 1.8 6.4 11.9 6.8 18.0 20.3

Tanzania 4.0 6.7 10.7 11.9 14.9 14.7

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Percent of arable land equipped for irrigation (% of arable land)

World 18.8 19.3 20.1 20.9 22.0 22.4 22.8 22.7

Africa 6.5 6.5 6.5 6.6 6.4 6.3 6.1 6.5

Burundi 1.7 1.9 2.0 2.2 2.4 2.4 2.4 2.5

Kenya 1.2 1.3 1.6 1.7 2.0 1.9 1.9 1.9

Rwanda 0.5 0.6 0.9 0.9 0.8 0.8 0.8 0.8

Uganda 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2

Tanzania 1.7 1.7 1.7 1.9 2.0 1.9 1.6 1.6

Depth of the Food Deficit (Kcal/capita/day)

World 128 121 108 105 101 95 90 88

Africa 179 177 178 176 168 160 156 154

Burundi 312 415 435 485 549 599 605 604

Kenya 222 230 222 213 228 179 179 170

Rwanda 393 408 518 424 333 314 240 210

Uganda 166 177 197 165 160 184 203 214

Tanzania 180 242 259 283 263 244 253 243

Prevalence of food inadequacy (%)

World 26.2 25.1 23.2 22.5 21.5 20.6 19.6 19.3

Africa 34.4 34.0 33.7 32.8 30.9 29.5 28.6 28.3

Burundi 54.5 65.3 66.9 70.9 74.9 78.2 78.3 78.2

Kenya 45.0 45.6 44.2 42.7 44.9 38.0 38.1 36.7

Rwanda 60.7 61.7 70.5 61.9 53.0 51.2 43.0 39.4

Uganda 35.8 37.4 40.0 35.3 33.5 36.5 38.8 40.2

Tanzania 38.1 46.1 47.0 48.6 45.6 43.1 44.0 43.0

Prevalence of undernourishment (%)

World 18.9 17.9 16.1 15.4 14.6 13.8 12.9 12.7

Africa 27.3 26.9 26.7 26.0 24.5 23.4 22.7 22.4

Burundi 44.4 55.7 57.7 62.1 66.3 69.7 69.5 69.2

Kenya 34.8 35.3 33.7 32.2 34.0 27.5 27.5 26.3

Rwanda 52.3 53.4 62.7 53.4 43.9 41.9 34.1 30.7

Uganda 27.1 28.7 31.3 26.9 26.2 29.3 31.6 32.9

Tanzania 28.8 36.7 38.3 40.5 37.8 35.6 36.5 35.5

Source: FAO Food security indicators

http://www.fao.org/economic/ess/ess-fs/ess-fadata/en/#.Uwp1bTnfo8E Kenya remains way below the average global and Africa values in most of the food security indicators. Imports of food have been on the increase, domestic food price level and cereal food import dependence level have been on increase too. Other indicators which show some improvement but which still remain of concern are: prevalence of food inadequacy, preference of under nourishment and depth of the food deficit (Kcal/capita/day).


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InternationalInternationalInternationalInternational TradeTradeTradeTrade

Kenya's share in world trade remains low, at an average of 0.05%. The country remains a largely trade deficit. The country’s current account deficit (as a share of GDP), has been on deterioration e.g. between 2006 and 2011, trade deficit reduced from 2.1% to 9.8%. The rise in the import bill has largely been on account of increased imports of oil, machinery, and transport and telecommunication equipment notable due to recent investment in infrastructure development sector. Trade in goods and services averages about 64% of the GDP, with imports accounting to over 37% of this share.

The value of imports has been on an increasing trend e.g. between 2005 and 2010, imports increased from US$5.8 billion to US$12 billion, with a large share being attributed to manufactures (over 60% of import value on average).

The share of agricultural products imports has also been on an increased trend, increasing from 11.2% to 13.6% for period between 2005 and 2010. The increase has been influenced by increasing food products, as the share of manufactured products declined, from 64.3% to 62.7% (Figure 2.2 a).

Agricultural products remain the main exports products, with a share in total exports being on the increase (Figure 2.2, a). Tea, coffee, and horticultural products are the main agricultural exports.

Asia is the main import market, providing some 42% of Kenya's total imports, with China and India leading the pack. Europe is also a significant source of imports, with 20.6% of total imports (Figure 2.2, b). Kenya's imports from Africa remain low, with South Africa being the largest Africa source market.

Africa remains the main export market for Kenya, with the leading markets being Uganda, Tanzania, Sudan and Egypt (Figure 2.2, b). EU accounts for a significant 24.8% of Kenya's export market. In general, Kenya's principal export markets are those to which it has preferential access: Uganda and Tanzania under the EAC, EU in the framework of the Interim Economic Partnership Agreement, and Egypt under COMESA.

Kenya's trade in services has been growing since 2006. Tourism remains the leading services trade sector.

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Figure 2.2 (a): Composition of merchandise trade, 2005 and 2010 (percentage)

Source: WTO, 2012

2005 2010

(a) Exports, including re-exports (f.o.b.)

Other mining1.9

Manufactures31.8

Other mining 2.0

Other agricultural raw material

3.0

Chemicals9.0

Machinery and transport

equipment 5.1

Other semi-manuf.

7.0Other

manufactures 9.9

Other food 24.4

Cut flowers and foliage

7.7

Fuels 4.2

Iron and steel3.0

Total: US$3.4 billion Total: US$5.2 billion

(b) Imports (c.i.f.)

Chemicals14.4

Manufactures64.3

Electricalmachines

5.8

Non-electrical machinery

6.8

Other manfactures8.7

Other mining1.5

Fuels22.9

Automotive products

6.5

Other transport equipment

11.6

Food9.5

Agricultural raw material

1.7

Iron and steel4.8

Non-electricalmachinery

8.6

Automotive products

6.5

Electricalmachines

10.3

Iron and steel 4.5

Food12.1

Agricultural raw material

1.6

Other 0.1

Other semi-manuf. 6.7

Other transport equip.

6.3

Chemicals13.3

Manufactures62.7


Per cent

Manufactures33.9

Tea22.5

Fuels18.3

Other 0.1

Other food21.1

Other 2.3

Agriculture 57.6

Mining23.6

Other semi-manuf.5.7

Agriculture 47.6

Agriculture13.6

Agriculture11.2

Mining24.4

Chemicals 8.4

Other 0.3

Other manufactures

6.5

Other mining1.5

Fuels22.1

Other agricultural raw material

2.8

Machinery and transport

equipment 2.9

Other semi-manuf.

5.5

Other manufactures

11.5

Tea16.6

Cut flowers and foliage

7.2

Iron and steel3.6


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Figure 2.2 (b): Direction of merchandise trade, 2005 and 2010 (percentage)

Source: WTO, 2012

2005 2010

(a) Exports, including re-exports (f.o.b.)

Asia 11.4

United States

5.5

Uganda12.7

Other Africa20.7

Middle East 7.4

Asia12.6

Other Europe0.9

Pakistan4.4

Other Asia8.2

Other America0.4


(b) Imports (c.i.f.)

Japan 5.2

EU(27)21.0Europe

22.8

Middle East 24.4

Other Middle East 10.2

China 5.2

South Africa9.7

Other Europe

1.8

Other Africa 4.5

United States9.6

Other1.4

EU(27)18.6

Europe20.6Asia

42.0

Other America 1.7

India 10.8

Japan 6.1

Africa 12.0 South Africa

6.2

Other Africa 5.7

Middle East 17.6

U.A.E. 12.1Other Middle East 5.5

United States4.1

Other2.1


Per cent

United States6.7

Uganda16.6

Other Asia 12.6

United Republic of Tanzania

8.1

Other Europe2.0

EU(27)23.9

Asia25.5

EU(27)24.5

Africa 46.7

Sudan4.6

India 5.6

U.A.E. 14.2

United Republic of Tanzania

7.7

Africa 14.2

Other 3.0Other

5.8

Africa 46.1

Other Asia 9.5

China 12.6

Other America 2.1

Sudan 2.6

Europe25.4

Middle East 3.5

Europe24.8

Other Africa19.8 Other Europe

0.9

Pakistan5.4

Other Asia5.9

Other America0.5

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CLIMATE, FOOD, TRADECLIMATE, FOOD, TRADECLIMATE, FOOD, TRADECLIMATE, FOOD, TRADE: THE : THE : THE : THE

NEXUS NEXUS NEXUS NEXUS Climate change and food security link directly and indirectly through trade. Trade also links with both climate change and food security directly. A conceptual relationship between climate change, trade and food security is presented in Figure 2.3 (IISD, 2010). Figure 2.3: Climate change, food security and trade linkages

Source: IIDS (2010)

Climate change, food security and trade interact in many important ways (details in Box 2.1):

i. Climate change physically affects trade (patterns and volume) ii. Trade affects climate change (directly international transport contributes

to greenhouse gas emissions and indirectly trade - induced growth affects production and policy priorities).


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iii. Climate change affects various sectors in the economy that are important for trade and foreign exchange for example agriculture, tourism, etc.

iv. Climate change affecting food availability, production and subsequently food prices which may impact negatively on food imports

v. Climate change policies affect trade. vi. Trade policies can provide the mechanisms to address climate change.

Box 2.1: CC-FS-T linkages

First , biophysical climate change impacts on agriculture and fisheries will alter the comparative advantages that determine countries’ export specializations and trade patterns. In addition, an increase in extreme weather events related to climate change threatens the infrastructure necessary for trade. Thus, climate change affects trade and alters trade patterns as countries react, adapt, and adjust to the current or potential impacts. Climate change will be particularly serious for the agricultural sector, raising food security and economic development concerns for many countries, especially in the developing world. Second , trade can directly and indirectly affect climate change. For example, international transport , an essential component in trade, is a direct contributor to greenhouse gas emissions (GHG). Business as usual in this sector will increase emissions as consumption continues to grow worldwide. Moreover, trade-induced growth , with resulting production and consumption is associated with greater GHG emissions that contribute to rise in climate change. It may be concluded that these dual causal and effect relationships suggest possibility of trade-off between supporting more trade and promoting climate change mitigation. However, freer trade policies, apart from promoting exports, can also enhance greatly a count ry’s access to green technologies as well as promote trade in environmental goods and services. In addition, at some stage of increased economic growth, populations start to demand better environmental protection. This can constructively alter policy priorities and compel governments to address sustainable development issues. These indirect effects are extremely important, but also very complex and therefore heavily debated. Third , policies designed to address climate change can aff ect trade . Examples of such policies are carbon taxes, emissions trading schemes , border carbon adjustments, the allocation of emissi ons allowances free of charge, national promotion of low-carbon technol ogies and clean energy, technical requirements, standards and label ing schemes, and the regulation of bunker fuels . However, it should be noted that these policies, through their effects on trade, if not appropriately designed, can have negative social and economic consequences for trading partners.

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For example, trade policies can be used to address climate chang e, both from an adaptation and a mitigation perspective. For example, the removal of trade barriers with respect to climate-friendly goods and services will make these available at lower prices and stimulate the diffusion of climate-friendly technologies, thereby strengthening the ability of countries to mitigate and adapt to climate change. In addition, intellectual property rights promote innovation in the transfer of climate-friendly technologies.

CC-FS-T linkages in Kenya can be summarized in Figure 2.4. Figure 2.4: Climate change, food security and trade linkages in Kenya

1

2 3 4

Source: Authors

Climate change, trade and food security are directly and indirectly interlinked (1&3). Climate change is directly linked food security and trade. Rainfall variability, increased temperatures and frequent floods already experienced in Kenya reduce production and supply of food affecting food quantities traded and direct food availability and therefore food security. Climate change effects discussed above are likely to affect food security in Kenya through all the food security dimensions.

Climate change (CC) Trade (T)

Food security (FS)


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Climate Change Effects on Food Availability in Keny a

Food Availability: Food availability may be affected through reduced production as a result of increased droughts, flooding, pests and diseases observed and projected for Kenya due to climate change. Climate change will also affect regional and global food trade, and therefore affecting food availability in Kenya. Trade impacts on food availability by enhancing food availability with food imports to bridge domestic shortage gaps and it worsens food availability through increased exports from the affected country or in the case of an export ban in the source country.

Climate Change Effects on Food Accessibility in Ken ya

Food Accessibility : Food accessibility depends both on market and non-market distribution mechanisms affected by climate change. Food purchasing power of households is likely to be reduced as income for farmers reduce due to low sales from reduced productions in Kenya as a result of climate change. Reduced production and supply also imply higher food prices, which may lead to decline in affordability of food in the country. Climate change affects transport infrastructure leading to high transport costs and higher food prices. Trade could contribute to higher or lower accessibility, with more imports leading to higher access, while less trade (both exports and imports) could lead to less accessibility.

Climate Change Effects on Food Utilization in Kenya

Food Utilization : Low household incomes (as a result of low sales due to reduced agricultural production) translate into the inability of households to diversify their diets, generating situations of chronic malnutrition. With increased temperatures in Kenya and lack of proper storage facilities including refrigeration equipment in rural areas, there is likelihood of loss of food quality. Projected increase in malaria and waterborne diseases will also affect nutritional requirements and therefore utilization of food in the country. Trade could lead to better technical standards, SPS, safety and overall quality of available food due to higher competition induced by trade. This could therefore contribute to better food utilization .

Climate Change Effects on Food Stability in Kenya

Food Stability : persistent droughts and poverty in the northern parts (ASALs) of the country have meant that these populations are vulnerable to chronic food insecurity, consequently these populations have tended to depend on food aid every year and therefore a long lasting solution is needed to ensure stability of food production and accessibility in those areas.

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Exercise

Using information from the Kenya trade situation and climate change situation presented in this chapter, identify two products and discuss their future implications on the country’s food security.


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REFERENCESREFERENCESREFERENCESREFERENCES Eitzinger, A. Laderach, P. Quiroga, A. Pantoja, A. and Gordon, J. (2011). Future Climate Scenarios for Kenya’s Tea Growing Areas. Final Report, Cali, Managua: April, 2011. International Center for Tropical Agriculture (CIAT), Cali, Colombia.

FAO (2001). The State of Food Insecurity in the World. World Food Summit. Food and Agriculture Organization of the United Nations, Viale delle Terme di Caracalla, 00100 Rome, Italy.

Government of Kenya (2010).National Climate Change Response Strategy. Ministry of Environment and Mineral Resources.

Government of Kenya (2011). National Food and Nutrition Security Policy. Agricultural Sector Coordination Unit (ASCU).

Government of Kenya (2013). National Climate Change Action Plan 2013 -2017. Ministry of Environment and Mineral Resources.

IFRI (2012). Global hunger index. The Challenge of Hunger: Ensuring sustainable food security under land, water, and energy stresses.

IFRI (2013). Global Hunger Index: The Challenge of Hunger: Building Resilience to Achieve Food and Nutrition Security. International Food Policy Research Institute. Bonn / Washington, DC / Dublin. http://www.ifpri.org/sites/default/files/publications/ghi13.pdf

ILRI (2010). Climate Variability and Climate Change: Impacts on Kenyan Agriculture. ILRI.

International Institute for Sustainable Development (IISD, 2010). Trade and Climate Change: Implications for Food Security. The Case of Mainland Southeast Asia. Series on Trade and Food Security. Policy Report 2. IISD.

King’uyu, S.M., Kilavi, M., Omeny, P., Muigai, E., and Njogu, A. K.(undated). Climate change indices for Kenya. Journal of Meteorological Studies. KSM 10th Conference Special Issue. 49-55.

Schoeneberger, R.G., Pfeifer, H., and Preuss J.A. (1990). The Four Dimensions of Food and Nutrition Security: Definitions and Concepts. FAO.

UNEP (2010). Kenya National Status Report on the Coastal and Marine Environment. UNEP.

USAID (1995). Food Aid and Food Security Policy Paper. USAID/General Notice. Policy PPC; 03/17/95. PN-ABU-219.

WWF. Definitions and concepts related to climate change. (http://frameweb.org/adl/en-US/7474/file/996/Key%20Concepts%20for%20Climate%20Change%20Adaptation.pdf).

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Websites

http://www.ifpri.org/sites/default/files/publications/ghi13.pdf

http://www.wfp.org/countries/Kenya/food-security

http://www.wfp.org/countries/Kenya/food-security/reports-and-bulletins

http://stats.oecd.org/glossary/index.htm


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Notes

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Notes

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NATIONAL AND NATIONAL AND NATIONAL AND NATIONAL AND

REGIONAL POLICIES REGIONAL POLICIES REGIONAL POLICIES REGIONAL POLICIES

Module ObjectiveModule ObjectiveModule ObjectiveModule Objective ��

The objective of this training module is to:

• Increase understanding of stakeholders in agriculture, climate sector and related sectors of the national and regional policies.

• Enable the stakeholders to have better technical knowledge of the CC-FS-T policies and their linkages.

LLLLearning outcomeearning outcomeearning outcomeearning outcomessss ��

At the end of the training of this module, it is expected that participants will have a better understanding of the current Kenya and EAC regional policies on climate change, agriculture, and trade and food security. This will enable them to contribute to policy formulation, revision and make recommendations taking into account CC-FS-T linkages.


35


CLIMATE CHANGE POLICCLIMATE CHANGE POLICCLIMATE CHANGE POLICCLIMATE CHANGE POLICIESIESIESIES

National climate change policiesNational climate change policiesNational climate change policiesNational climate change policies The aim of Kenya climate change policies is to achieve a low carbon climate resilient development pathway. The objective is to reduce the country’s vulnerability to climate change and improve her ability to take advantage of opportunities offered by climate change to move towards attaining the country’s long-term development goals. The National Climate Change Action Plan (NCCAP) 2013 – 2017 guides implementation of climate change policy in Kenya. The plan is guided by several policies, strategies and initiatives that provide a supportive framework for implementing climate change responses in the country. These include: • The Constitution of Kenya (2010) which provides ground for the

formulation of adaptation and mitigation legislation, policies and strategies by guaranteeing the right to a clean and healthy environment under the Bill of Rights .

• Vision 2030, the national long term development framework which provides for programmes and projects with aspects of adaptation and mitigation such as:

i. Integrated National Transport Policy (2010), which provides

for transport solutions that have relevance to climate change mitigation.

ii. The National Policy for the Sustainable Development of Northern Kenya and other Arid Lands which focuses on climate resilience requiring Government to find solutions to address climate challenges and to develop measures to manage drought and strengthen livelihoods.

iii. The establishment of the National Drought Managemen t Authority (NDMA), the National Disaster Contingency Fund and the Council for Pastoralists education are provided for in the policy.

iv. The National Disaster Management Policy, 2012 , which institutionalizes disaster management and mainstreams disaster risk reduction in the country’s development initiatives. The policy aims to increase and sustain resilience of vulnerable communities to hazards.

v. Environmental Management and Coordination Act (EMCA , 1999), which provides for development of relevant institutional framework for the coordination of environment management including the establishment of the National Environment Management Authority (NEMA). NEMA is the Designated National Authority (DNA) for Clean Development Mechanism

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(CDM) and the National Implementing Entity (NIE) for the environment Adaptation Fund.

vi. The Water Act of 2002 provides for the overall governance of the Water Sector. The regulations and strategies from the Act recognize the climate change implications on health, sanitation and water .

vii. The Energy Policy and Act of 2006 , which implements the energy policy of 2004 which promotes use indigenous renewable energy sources and provides for mitigation of climate change, through energy efficiency.

viii. Feed in Tariffs (FiTs) policy of 2008 (revised 2012 ) which promotes electricity generation from renewable sources such as geothermal, wind, hydro, solar and biomass.

ix. The Agricultural Sector Development Strategy 2010-2 020, promotes sustainable food production and agroforestry.

x. The Kenya Forestry Master Plan 1995-2020 which provides a framework for forestry development until 2020.

xi. The Second National Environment Action Plan (NEAP, 2009-2013), which provides a framework for the coordination of environmental activities by various actors for better management of resources.

xii. Threshold 21 (T21) Kenya, a simulation for supporting comprehensive, integrated long-term national development planning. The model integrates risks and impacts analysis of climate change across economic sectors to inform coherent national development policy formulation.

● Policy prioritization areaPolicy prioritization areaPolicy prioritization areaPolicy prioritization area

The low carbon climate resilient development pathway being pursued by Kenya means the country acknowledges the implications of climate change for sustainable development objectives. The challenge therefore is adopting and implementing the necessary corrective actions. The policies stress on:

• Sustainable Development: All climate actions aim at achieving sustainable development and poverty alleviation.

• Adaptation: Policies aim at reducing vulnerability to avoid or cushion the impacts of climate change, and enable people to respond to climate risks by moving toward a climate-resilient society.

• Mitigation: Policies aim at taking action to encourage low emissions of GHG and to reduce the human causes of emissions by moving toward a resource efficient economy.

● PrioritPrioritPrioritPrioritized actionsized actionsized actionsized actions

Prioritized actions aim at attaining a climate-proofed development that sustains natural capital base and enhances adaptive capacity of the communities. Low carbon actions are based on impacts on poverty alleviation and significant sustainable development benefits.

37


The priority sectors with maximum carbon emission reduction are: energy, transport, industry, agriculture, forestry and Waste. It is estimated that mitigation actions in these sector could lead to reduction of carbon emission by between 15percent to about 70 percent of the 2010 base period values by 2030 (Republic of Kenya 2012). Actions expected to contribute most to reduction in carbon emissions are: geothermal power generation, distributed clean energy solutions, improved water resource management, restoration of forests on degraded land, climate smart agriculture and agroforestry and waste. Specific areas of action in Agriculture include:

• Agroforestry • For crops: conservation tillage and limiting the use of fire in

cropland and rangeland management, promotion of drought tolerant crops, water harvesting, integrated soil fertility management and insurance schemes.

• For livestock improved management of grazing systems, livestock diversification, and breeding techniques, price stabilization.

• Provision of accessible climate information to farmers and pastoralists in arid and semi-arid lands.

• Maintaining strategic food reserves. • Mainstreaming climate change into agricultural extension

services.

● Specific actions for environment, water anSpecific actions for environment, water anSpecific actions for environment, water anSpecific actions for environment, water and sanitation d sanitation d sanitation d sanitation

include:include:include:include:

• Increasing tree cover to 10 per cent of total land area so as to reduce impact of flooding

• Reforesting and rehabilitating the main water towers and water catchment areas

• Restoration of forests on degraded lands • Reforestation and reducing emissions from deforestation and

forest degradation (REDD • Improving coastal zone management to rehabilitate and conserve

vital coastal ecosystems • Improved sewage systems.

Other priority actions target tourism, transport infrastructure, electricity generation infrastructure, manufacturing, population, urbanization and housing and disaster preparedness. If implemented, these actions will mitigate the negative impacts of climate change therefore contributing to better agricultural productivity, more trade and a possibly improved food security.

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The EAC Climate Change Policy FrameworkThe EAC Climate Change Policy FrameworkThe EAC Climate Change Policy FrameworkThe EAC Climate Change Policy Framework

● Policy Making at the EAC LevelPolicy Making at the EAC LevelPolicy Making at the EAC LevelPolicy Making at the EAC Level

The general EAC policy or decision making process is summarized in Figure. Figure 3.1: EAC decision and policy making structure and cycle

Source: EAC (2012)

Partner States or EAC secretariat initiates a policy

Experts group meeting examines /EAC secretariat formats

Council of Ministers & sectoral councils

for budgetary and adoption

Sectoral committee checks relevance acceptance and applicability

Summit for adoption

Coordinating committee Structural & budgetary implications

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Key Actors

The Summit : Which is made up of the Heads of State of the Partner States, its purpose is to give general direction and thrust to the development and achievement of the Community’s objectives. It considers Community’s annual progress reports and any other reports submitted to it by the Council of Ministers. Key activities related to policy and decision making are the functions of assenting to Bills, and publishing rules and orders in the East African Gazette, after which the rules come into effect. Council of Ministers and Sectoral Councils: The Council of Ministers is made up of ministers responsible for regional co-operation of each Partner State and other ministers of the Partner States as determined by each Partner State. Some of the Council’s function include: promotion, monitoring and reviewing implementation of community programmes and ensuring Community’s proper functioning. It also establishes Sectoral Councils to address specific Community matters, when necessary. Coordinating committees: This Committee is made up of Permanent Secretaries responsible for regional co-operation in each Partner State and other Permanent Secretaries as determined by each Partner State. Among it’s the functions of this Committee is implementation of decisions of Summit and the Council of Ministers and; co-ordination of the activities of the Sectoral Committees. Sectoral committees: These Committees are created by the Council of Ministers and report to the Coordination Committee. Their functions include: preparation of comprehensive implementation programmes; definition of sectors’ priorities and monitoring their implementation; and addressing sector specific issues. They are made up of senior officials from Sector Ministries including Trade, Industrial Development, Finance, Infrastructure and Services, Maritime Transport, Health, Agriculture and Environment management from the Partner States. Non state actors including private sector and civil society organizations are represented at the national level and at the regional level as part of the experts group. A more consultative dialogue framework for private sector and civil society was adopted by the EAC Council of Ministers in 2012.

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EAC policies on climate change are guided by the re gional policies articulated in the EAC treaty, the region’s Protoco l on Environment and Natural Resources Management, East African Communit y Climate Change Policy (EACCCP) and the Climate Change Maste r Plan.

● The Treaty Establishing the EACThe Treaty Establishing the EACThe Treaty Establishing the EACThe Treaty Establishing the EAC

The Treaty establishing the EAC provides for cooperation in environment and natural resources management through coordination and cooperation in: joint and efficient management and sustainable utilization of natural resources; policies and actions for the protection and conservation of the natural resources and environment against degradation and pollution arising from developmental activities; common policies for control of trans-boundary movement of toxic and hazardous waste including nuclear materials and any other undesirable materials; timely provision of relevant information and through capacity building programmes for sustainable management of natural resources. The Treaty also provides for cooperation in management of the Environment through development of a common and special environmental management strategies to prevent, arrest and reverse the effects of environmental degradation for fragile ecosystems, terrestrial and marine resources, noxious emissions and toxic and hazardous chemicals; measures to control trans-boundary air, land and water pollution arising from developmental activities; and taking necessary disaster preparedness, management, protection and mitigation measures especially for the control of natural and man-made disasters including include oil spills, bio-hazards, floods, earthquakes, marine accidents, drought and bush fires; and integration of environmental management and conservation measures in all developmental activities such as trade, transport, agriculture. The EAC Treaty also provides for cooperation in meteorological services including in cooperation in support to early warning systems and remote sensing for food security; and; in meteorological support to environment management, with objectives being to: preserve, protect, enhance quality, contribute towards sustainability and sustainable utilization of natural resources like lakes, wetlands, forests and other aquatic and terrestrial ecosystems; and to jointly develop and adopt water resources conservation and management policies that ensure sustenance and preservation of ecosystems.

● EAC Protocol on EAC Protocol on EAC Protocol on EAC Protocol on Environment and Natural Resources Environment and Natural Resources Environment and Natural Resources Environment and Natural Resources

Management Management Management Management

The EAC Protocol on Environment and Natural Resources Management (EAC, 2005) provides for the EAC Partner States’ cooperation in the

EAC Treaty provides for cooperation in environment and

natural resources management…

… and meteorological services

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management of environment and natural resources over areas including trans-boundary environment and natural resources (areas of cooperation are provided in Box 3.1. The objectives of the cooperation under the protocol are to:

• Promote sustainable growth and development of the EAC Partner States through sustainable use and management of the environment and natural resources;

• Foster closer cooperation for judicious, sustainable and coordinated management, conservation, protection and utilization of the environment and natural resources and promote capacity building and environmental awareness in environment and natural resources management;

• Promote shared responsibility and cooperation in the management of environment and natural resources including those that are trans-boundary in nature; and,

• Promote development and harmonization of policies, laws and strategies for environment and natural resources management to support sustainable development.

Box 3.1: Regional cooperation in Management of 1. trans-boundary resources 2. biological diversity 3. forest and tree resources 4. wildlife resources 5. water resources 6. sustainable management

and wise use of wetland

resources coastal and marine

resources 7. fisheries resources 8. genetic resources 9. mineral resources 10. energy resources 11. mountain ecosystems

12. soil and land use 13. management rangelands 14. combating

desertification and mitigating effects of drought and climate change

15. protection of the ozone layer

16. tourism development

17. biosafety and biotechnology chemicals

18. environmental

standards 19. wastes and hazardous

wastes 20. pollution control and

management 21. environmental impact

assessment and audits

22. military and hostile activities

23. public participation, access to justice and information

24. environmental disaster preparedness and management.

● The East African Community Climate Change Policy The East African Community Climate Change Policy The East African Community Climate Change Policy The East African Community Climate Change Policy

(EACCCP) (EACCCP) (EACCCP) (EACCCP)

According to the EACCCP, the aims of the EAC, climate change policy are to address the adverse impacts of climate change in the EAC region and to contribute to development of policies and programmes aimed at widening and

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deepening cooperation among Partner States in line with the EAC Treaty (EAC, 2010). The general objective is to guide EAC Partner States and other stakeholders on the preparation and implementation of collective measures to address Climate Change in the region while assuring sustainable social and economic development. The Community’s policy is founded on three key pillars of adaptation, mitigation and climate change research (monitoring, detection, attribution and prediction). The pillars are to be supported by the several capacity building areas including: technology development and transfer, finance, education, training and public awareness, information and knowledge management systems. Given the differentiated impacts of climate change on women, men and youth, and the roles of women specifically in addressing climate change, the policy attempts to take gender considerations into attention. On adaptation , the Policy aims at implementing urgent and immediate adaptation priorities identified in the National Adaptation Programmes of Action (NAPAs), National Adaptation Plans (NAPs) and climate change strategies. Adaptation priorities identified include: strengthening meteorological services and improving early warning systems; disaster risk management through; risk reduction, preparedness, mitigation and reconstruction, scaling up of efficient use of water and energy resources, irrigation, crop and livestock production, strengthening pre and post agricultural losses, protection of wildlife and key fragile ecosystems such as wetlands, coastal, marine and forestry ecosystems, improving land use, soil protection, tourism, climate proofing social infrastructure, and reducing climate sensitive vector and water borne diseases. On mitigation , policy reiterates the importance of the EAC region to contribute to the reduction of GHG in the atmosphere through the preparation of Nationally Appropriate Mitigation Actions (NAMAs) for sectors with potentially high emission factors. This is important although the region has negligible contribution to global greenhouse gases (GHGs) emissions. Critical sectors for mitigation measures identified include: energy, transport, agriculture, waste management and industry. The policy observes that Mitigation actions should not compromise the region’s social and economic development, but should position the region towards the low carbon development pathways. mitigation measures prioritized in the Policy include; forestation, reforestation, promotion of energy efficiency, efficient crop and livestock production systems and efficient transport systems, waste management while capturing opportunities in emission reductions in the

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region provided for under the Clean Development Mechanism (CDM) of the Kyoto Protocol. For implementation , each EAC Partner State is expected to create an enabling environment through policy, legislative and institutional frameworks so as to operationalize the provisions of the Policy. Partner States are to develop: national policies, strategies and institutional arrangements (refer to section 3.3.1(a) on details of the national policy). At the regional level , the Policy provides for an establishment of a regional Climate Change Coordination structure at the EAC Secretariat and an EAC Climate Change Fund. The aim of the Fund is to mobilize financial resources for the implementation of the Policy and instruments of implementing the Policy including the EAC Climate Change Strategy and Master Plan. The EAC Secretariat, other organs and institutions of the Community are to develop effective approaches to initiate follow up actions and establish partnership to ensure the successful implementation of the Policy. The approaches to be developed include: capacity building in terms of technical skills, knowledge and monitoring tools and address challenges related to technology development and transfer and access to finance. To implement the climate change policy, the region has developed a climate change master plan for the period 2011-2030. The plan sets out a long-term vision and a basis for EAC Partner States to operationalise a comprehensive framework for adapting to and mitigating climate change in line with the EAC Protocols on: Environment and Natural Resources Management and with international climate change agreements. It takes into account the EAC Climate Change Policy, EAC Climate Change Strategy, the EAC Protocol on Environment and Natural Resources Management and the EAC Food Security Action Plan.

● Protocol for sustainable development of Lake Victoria Protocol for sustainable development of Lake Victoria Protocol for sustainable development of Lake Victoria Protocol for sustainable development of Lake Victoria

BasinBasinBasinBasin

Under the protocol for sustainable development of Lake Victoria Basin (EAC, 2001), Partner States cooperate in the conservation and sustainable utilization of Lake Victoria Basin resources including the: water resources; fisheries resources; agricultural and land use practices including irrigation; forestry resources; wetlands; trade, commerce and industrial development; infrastructure and energy; maintenance of navigational safety and maritime security; improvement of public health with specific reference to sanitation; research, capacity building and information exchange; environmental protection and management of the Basin; public participation in planning and decision-making; integration of gender concerns in all activities in the lake basin; and promotion of wildlife conservation and sustainable tourism development.

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● Climate change policy making at the EAC levelClimate change policy making at the EAC levelClimate change policy making at the EAC levelClimate change policy making at the EAC level

The general EAC policy making process is discussed above (page 37). For climate change policy, the EAC Secretariat, Sectoral Council on Environment and Natural Resources and its Sectoral Committee are the main actors. The private sector and civil society participate at the six expert groups dealing with environment and natural resources which include: Terrestrial Ecosystems; Aquatic Ecosystems; Pollution Issues; Policy, Legal and Institutional Frameworks; Bio-safety; and Climate Change.

Exercise

Participants will be expected to discuss the areas of cooperation under EAC Climate Change Master Plan for the period 2011-2030 (discussed above), identify, and suggest any other areas which they consider important for inclusion in the policy.

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TRADE POLICYTRADE POLICYTRADE POLICYTRADE POLICY

National Trade PolicyNational Trade PolicyNational Trade PolicyNational Trade Policy According to Kenya National Trade Policy (NTP; Government of Kenya, 2011), the aim of Kenya trade policy is to contribute to the achievements of the aspirations of the Vision 2030 framework (economic development) through development of a competitive and globally efficient economy.

The objectives of the policy are to: • Pursue more open, competitive, and export-oriented policies that are

compatible with the country’s national development objective, • Create an enabling environment for trade and investment to thrive.

● Priorities identified to achieve the objectives include:Priorities identified to achieve the objectives include:Priorities identified to achieve the objectives include:Priorities identified to achieve the objectives include:

• Expanding and diversifying domestic and export trade, • Enhancing support for trade facilitation, • Promotion of e-trade, • Expanding and strengthening public-private partnerships, • Establishing a trade and investment information-sharing system, • Providing entrepreneurial skills for micro, small, and medium-size

enterprises (MSMEs), Supporting the improvement of the business and investment climate,

• Formulating an appropriate trade remedy regime, • Developing an appropriate negotiating structure and an integrated

database on trade in goods and services, • Aggressively promoting trade in services.

International trade is a priority in realizing our objectives. It is pursued through more open, competitive and export oriented policies through multilateral, regional and bilateral trade commitments. The sectors identified for export opportunities include: tea, coffee, horticulture, livestock and livestock products, fish and fish products, food and beverages, textiles and clothing, and commercial crafts. ¨

● Key trade policy instruments include:Key trade policy instruments include:Key trade policy instruments include:Key trade policy instruments include:

•••• Import duty

Since EAC became a Customs Union in 2005, Kenya has been implementing the EAC trade policy regime provided under the EAC Customs Protocol (EAC, 2004), which provides duty free market access conditions for intra EAC Partner States trading. Trade with non EAC member countries is governed by the Common External Tariff (CET). Kenya trades with the other four EAC Partner State countries of Burundi, Rwanda, Uganda and Tanzania on duty free and quota free basis under the EAC Customs Union, and implements the EAC rules of origin. The intra EAC trade policy regime aims at facilitating

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intraregional trade among the Partner States (this is discussed in detail in the next session – regional trade policy). Kenya is also a part of the COMESA FTA and trades on duty free and on preferential duty basis with COMESA members who are a part of the COMESA FTA3 and COMESA non4 FTA members respectively. COMESA rules of origin (which are similar to EAC rules of origin) apply to trade with COMESA member countries. Imports from the rest of the world (except for trade with the EAC and COMESA member countries) are subject to the EAC Common External Tariff (CET) of 0, 10 and 25 for raw materials, intermediate goods and final products respectively.

•••• Designation of sensitive products

Together with the other EAC Partner State countries, Kenya has designated over 50 products classified as sensitive (see annex 1), which attract higher tariffs than the maximum of the EAC finished goods tariffs of 25%. Most of these products (including maize, rice, milk, meslin, and sugar, wheat and their derivative products) are agricultural products (EAC Common list of sensitive products). The products are considered sensitive because they are deemed to be of economic importance, especially from the point of view of food security or are considered to be of a potential and therefore the need to protect the ‘infant industry’. On average agricultural sector is more protected with higher import duty compared to manufactured sector in Kenya. The higher protection of the agricultural sector means imports of food products in times of deficit attracts high duty rates, further reducing food access.

•••• Duty exemption

In times of food shortages (e.g. 2011) Government may suspend import duties, and including Value Added Tax (VAT) on key food products such as maize and wheat with a view to enhance their accessibility. The country in 2011 also obtained one-year exemption from applying the current CET rate of 75 percent duty on imported milled rice to apply 35 percent. Import duties are also exempted on other essential products such as hospital and medical equipment.

3 In addition to Burundi, other members of COMESA FTA are: Djibouti, Egypt, Kenya, Madagascar, Malawi, Mauritius, Rwanda, Sudan, Zambia, Zimbabwe, Comoros, Seychelles and Libya. 4 These include: Eritrea, Uganda, DR Congo and Ethiopia.

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•••• Safeguards

Kenya applies COMESA safeguard provisions on sugar. Sugar imports from COMESA face a duty rate of 10%, until March 2014, until the extension of the safeguards period is extended.

•••• Rules of origin

Kenya applies preferential rules of origin for EAC and COMESA (which are similar). See page 49 for details of the EAC rules of origin.

•••• Health, sanitary, phytosanitary, and environmental protection measures

Pre Export Verification of Conformity (PVoC) is required for import of some products such as vehicles for the purposes of ensure quality of products, health, and safety, and environmental protection for consumer. Kenya has a fairly well developed institutional structure for developing and ensuring safety, sanitary and phytosanitary of agricultural and food products. Exports and imports of agricultural and food products must meet the set standards.

•••• Export tax

Kenya applies an export tax of 40 percent on hides and skins, with an aim of discouraging exports of these products in their raw forms. The country also applies an export tax of 20% on scrap metal, to support local demand for metals.

● Other trade measuresOther trade measuresOther trade measuresOther trade measures::::

i. Administrative procedures: In addition to export and import procedures such as business registration and export permits that depend on the product being exported, being more for agricultural, livestock and fisheries products.

ii. Value Added Tax (VAT): All goods, imported or domestic, are subject to a

value added tax (VAT) of 16 percent. iii. Excise duties: Excise duties in Kenya are charged to both imports and

domestically produced goods, including fruit juices, alcoholic beverages, tobacco products, fuels, and cosmetics.

iv. Export incentives: Export production incentives are provided under the

Export Processing Zones (EPZ) Scheme, the Manufacturing Under Bond Scheme, and the EAC duty remission scheme, with an aim of promoting export manufacturing.

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● Other trade regimes to for KenyaOther trade regimes to for KenyaOther trade regimes to for KenyaOther trade regimes to for Kenya

Together with the other EAC Partner State countries, Kenya has been negotiating Economic Partnership Agreements (EPAs) with the EU. In addition, the EAC Partner State countries are negotiating with the United States an agreement on Trade and Investment. At the multilateral level, Kenya is a member of World Trade Organization (WTO) and participates in WTO negotiation process individually or as a part of other groups of interest.

● Trade policy formulation in KenyaTrade policy formulation in KenyaTrade policy formulation in KenyaTrade policy formulation in Kenya

Trade policy formulation in Kenya is undertaken under the leadership of the Ministry of Foreign Affairs and Trade. Formulation is a consultative process involving all the government ministries’ stakeholders including Ministry of Finance, Ministry of East Africa and Tourism, Ministry of Agriculture, Livestock and Fisheries among others. Private sector, academia/research institutions and civil society institutions are also represented in the policy formulation.

EAC Trade policyEAC Trade policyEAC Trade policyEAC Trade policy

The EAC trade regime is governed by the EAC Treaty, the EAC Customs Union Protocol, the common external tariffs (CET), the EAC Common Market Protocol.

● The Treaty establishing the EACThe Treaty establishing the EACThe Treaty establishing the EACThe Treaty establishing the EAC

The EAC rules of origin aim at facilitating EAC intra-regional trade by ensuring that the products traded duty free under the EAC Customs Union origin from the EAC Partner State countries, therefore preventing trade deflection. The rules of origin also promote local production and processing. The origin conferring (EAC, 2004) is made up of the following criteria:

(a) Wholly produced (such as agricultural, mineral, fisheries products among others).

(b) Partially produced (some parts imported from non EAC Partner State countries) provided that:

(i) The cost insurance and freight (c.i.f.) value of those materials does not exceed sixty per centum of the total cost of the materials used in the production of the goods;

(ii) The value added resulting from the process of production accounts for at least thirty five per centum of the ex-factory cost of the goods;

(iii) The goods change their tariff heading from their imported heading with processing in EAC Partner State country.

For food and agricultural products, rules of origin have not been an issue as most of these products fit under wholly produced criteria.

49


● EAC Common Market ProtocolEAC Common Market ProtocolEAC Common Market ProtocolEAC Common Market Protocol

The EAC trade regime is governed by the EAC Treaty, the EAC Customs Union Protocol, the Common External Tariffs (CET) and the EAC Common Market Protocol. The objective of EAC internal trade policy is to liberalize trade. Liberalization objective has been pursued through establishment of a Customs Union Protocol since 2005 and establishment of the common market in 2010, with the former liberalizing goods trade while the later liberalizes services trade. For intra EAC trade, the Customs Union (EAC Secretariat, 2004) provides for:

i. Elimination of customs duties and other charges of equivalent effect ii. Elimination of Non-Tariff Barriers to trade among the Partner States iii. Establishment a Common External Tariff (CET) applicable to all goods

imported into the Partner States third countries.

● KKKKey instey instey instey instruments of EAC trade policyruments of EAC trade policyruments of EAC trade policyruments of EAC trade policy

•••• The Common External Tariff (CET)

This is the common duty rate that applies to imports originating from on EAC Partner state countries. This is a three-band tariff rate of 0, 10 and 25% for raw and capital goods, intermediate and finished goods respectively for goods. The CET provides for tariffs higher than the maximum CET rates (over 25%) to some fifty- eight (58) strategic finished products designated as sensitive goods (list of the EAC sensitive products is presented in annex 1). Of these products, most them (31 of them) are agricultural and food products. Among these sensitive products are staple foods and other strategic food products for which the region is often not sufficient in such as: milk (with a duty rate of 60%), maize (with a duty rate of 50%), rice (with a duty rate of 50%), wheat or meslin flour (with a duty rate of 60%) and sugar (with a duty rate of 35-100%). The justification for sensitive products in trade policy is based on the argument that liberalization could adversely affect production or trade of products that are of strategic importance to a particular country, in this case food products. Production, consumption and revenue earning capacity of such commodities are considered to be vulnerable to trade policy changes. The criteria for including products on EAC sensitive list include contribution to rural development, employment, livelihood sustainability, promotion of food security, fostering infant industries and contribution to government revenues. Although this policy protects EAC agricultural industry, in times of food deficit, the higher custom duties contribute to higher prices, thus reducing food access. Any other departure from the EAC CET is granted on a country’s request of a waiver.

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Both the rules of origin and the designation of sensitive products aim at encouraging EAC domestic production, which can be adversely affected by, or it could contribute to climate change. Increased EAC production can lead to increased incomes and to improved food availability and access, therefore improving food security.

•••• Non-Tariff measures

According to the treaty establishing the EAC Partner is to remove all non-tariff barriers (NTBs), and not to impose any new ones. In 2008, EAC Partner states started implementation of a mechanism for identifying and monitoring the elimination of NTBs, including standards and technical requirements. Products technical standards and phytosanitary requirement (SPS) are for ensuring animal and plant health, the ultimate objective being to ensure security, safety, and environment. Over 1,200 standards have been harmonized at the regional level by the East African Standards Committee (EASC), although the Partner States continue to apply national standards. According to the EAC SPS protocol, SPS measures are to ensure protection of human, animal, and plant live and health and for promoting trade in agri-food products. Under this protocol, Partner states have defined procedures for: conformity assessment, mutual recognition, and determination of equivalences across EAC Partner States. The protocol provides for development of harmonized SPS measures for plants; mammals, birds and bees; for fish and fishery products; and on food safety. SPS requirements remain a national issue.

•••• Incentives

The EAC Customs Union provides for incentives for processing for exports outside the EAC including duty drawback, manufacturing under bond (MUB) and manufacturing under Export Processing Zones (EPZ), free ports and duty and VAT remission schemes.

•••• Prohibited imports

False money and counterfeit currency notes and coins, pornographic materials, marches made up of white phosphorous, distilled beverages containing essential oils or chemical which are injurious to health, narcotic drugs under international control, hazardous wastes and their disposal, soaps and cosmetic products containing mercury, used tires for light commercial vehicles and passenger cars. Several agricultural and industrial chemicals imports into the EAC, all counterfeit goods and plastic articles of less than 30 microns for the conveyance or packing of goods are also prohibited.

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•••• Restricted imports

Postal franking machines, traps capable of killing or capturing game animals, unwrought precious metal and precious stones, arms and ammunition, genetically modified products, spent cartridges of nuclear reactors, ozone depleting substances among other animal and endangered species products.

•••• Restricted exports

EAC trade policy restricts exports of some products to encourage value addition or to conserve the environment. These products include: waste and scrap of ferrous cast iron, timber from any wood grown in EAC Partner State countries, fresh unprocessed fish (Nile Perch and Tilapia) and wood charcoal.

•••• Other trading regimes

Together, EAC countries are negotiating for EAC- EU Economic Partnership agreement (EPA). They are also negotiating for a trade and investment agreement with the United States and a part of the COMESA-EAC-SADC tripartite agreements. The Partner States are also a part of the WTO Doha round negotiations.

● Trade policy making at the EAC levelTrade policy making at the EAC levelTrade policy making at the EAC levelTrade policy making at the EAC level

The general EAC policy making process is discussed above. For trade policy; the Secretariat; Sectoral Council on trade, industry, finance and investment (SCTIFI) and EAC Sectoral Committee on Trade, Industry and Investment are the main actors. Private sector and civil society contribute at the trade experts group.

Exercise

Participants will discuss the likely impact of the EAC higher CET (on the specific products provided above) on Kenya domestic production of these products and its implications on climate change, and implications on Kenya exports and imports of these products; and on the country’s food security.

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FOOD SECURITY POLICYFOOD SECURITY POLICYFOOD SECURITY POLICYFOOD SECURITY POLICY

National Food Security National Food Security National Food Security National Food Security PolicyPolicyPolicyPolicy Kenya’s food security policy is first and foremost guided by the Constitution of Kenya 2010 (Government of Kenya, 2010). Article 43 (1) of the constitution provides that ‘every person has a right to be free from hunger, and to have adequate food of acceptable quality’. The Constitution puts the food security in Kenya at the right-based approach.

Food security policy in Kenya is also informed by other policies, strategies, actions plans and initiatives both at the national level and at the regional levels. Key among these: the Agricultural Sector Development Strategy (ASDC) 2010–2020 and the Comprehensive Africa Agricultural Development Policy (CAADP).

The objectives of Kenya food security policy as stated in the National Food and Security Policy (NFSP; Government of Kenya, 2011) are to:

i. Achieve good nutrition for optimum health of all Kenyans

ii. Increase the quantity and quality of food available, accessible and affordable to all Kenyans at all times

iii. Protect vulnerable populations using innovative and cost-effective safety nets linked to long-term development.

The framework adopted by Kenya includes the four dimensions of food security: availability, accessibility, stability, and meeting nutritional requirements. Kenya’s approach to food security combines longer-term action to enhance productive potential and incomes, with programmes and policies that respond to immediate needs of the poor and food insecure.

● Food availability and access Food availability and access Food availability and access Food availability and access is tois tois tois to be achieved through:be achieved through:be achieved through:be achieved through:

i. Increased sustainable production to increase food that is diversified, affordable and helps meet basic nutrition requirements.

ii. Better storage and processing is to reduce post-harvest losses and will help smooth availability over time.

iii. Maintenance of Strategic reserves comprised of both food and cash stocks to ensure rapid response to emergencies

iv. Ensuring well-functioning markets at the rural and urban areas

v. Promoting food trade to ensure a predictable supply of food on a commercial basis

vi. Enhanced employment in rural and urban areas to improve food access.

Food safety, Standards and quality control are ensured through raising public awareness on relevant issues, and by setting, promoting and enforcing appropriate guidelines, standards and a regulatory framework.

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● Other policy measures to ensure food security include:Other policy measures to ensure food security include:Other policy measures to ensure food security include:Other policy measures to ensure food security include:

• Enhancing food access and special nutrition interventions for specific vulnerable groups

• Creating awareness to provision of nutritious foods to all family members and especially children

• Improving nutrition and nutrition education in schools with an emphasis on good nutrition practice and positive food habits.

• Development of an early warning and emergency management system to protect vulnerable populations such as an emergency response mechanisms, cash transfers and supply of inputs.

● Food security policy formulation in KenyaFood security policy formulation in KenyaFood security policy formulation in KenyaFood security policy formulation in Kenya

Food security policy in Kenya is undertaken under the leadership of the Ministry of Agriculture, Livestock and Fisheries. The formulation process is consultative involving all the stakeholders including other government of Kenya Ministries, departments and agencies, representatives of research/ academia, private sector and civil organizations. The above approach to achievement of food security includes both increased domestic production, and facilitated domestic, regional and international trade. Climate change may adversely affect achievement of increased domestic production and increased trade food supplies.

EEEEAC Agriculture aAC Agriculture aAC Agriculture aAC Agriculture and Food Security Policy nd Food Security Policy nd Food Security Policy nd Food Security Policy

FrameworkFrameworkFrameworkFramework

The EAC agricultural policy is articulated in the T reaty establishing the EAC (EAC Treaty, EAC Agriculture and Rural Developm ent Policy (EAC-ARDP), EAC Food Security Action Plan (2011 – 2015). It is also shaped by the Comprehensive Africa Agricultural Developmen t Programme (CAADP). At the national level, the policy is artic ulated by the Kenya food security policy.

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● Treaty establishing the EACTreaty establishing the EACTreaty establishing the EACTreaty establishing the EAC

Chapter eighteen of the EAC Treaty (EAC, 1999), article 105 sets the scope for the regions cooperation in Agriculture and food security. The objectives of cooperation in this areas are to ensure: a common agricultural policy; food sufficiency within the Community; an increase in the production of crops, livestock, fisheries and forest products for domestic consumption, exports within and outside the Community and as inputs to agro-based industries within the Community; and post-harvest preservation and conservation and improved food processing. Specific identified areas of cooperation in agriculture include: harmonization of agricultural policies of the Partner States; the development of food security within the Partner States and the Community as a whole, through the production and supply of foodstuffs; agro-meteorology and climatology to promote the development of early climatological warning systems; development and application of agricultural training and research and extension services; adoption of internationally accepted quality standards for food processing; establishment of joint programmes for the control of animal and plant diseases and pests; the marketing of food and the co-ordination of the export and import of agricultural commodities; joint actions in combating drought and desertification.

● The EAC Food SThe EAC Food SThe EAC Food SThe EAC Food Secuecuecuecurity Action Prity Action Prity Action Prity Action Plan (lan (lan (lan (2011201120112011----2015201520152015))))

The EAC agricultural policy is articulated in the Treaty establishing the EAC (EAC Treaty, EAC Agriculture and Rural Development Policy (EAC-ARDP), EAC Food Security Action Plan (2011 – 2015). It is also shaped by the Comprehensive Africa Agricultural Development Programme (CAADP).

The EAC food security action plan for the period 2011-2015 guides the implementation and actualization of a regional food security. The food security plan is aligned to the continental food security agenda particularly the Comprehensive Africa Agricultural Development Programme (CAADP) and the Framework for African Food Security (FAFS). Implementation is guided by the Agriculture and Rural Development Strategy for the East African Community (2005 - 2030) and other EAC relevant documents. Resource Mobilization and Time Frame is mainly from EAC Partner States and Development Partners. The priority areas include:

i. Provision of enabling policy, legal and institution al framework , through creation of a harmonized approach for achieving food security.

ii. Increase food availability in sufficient quantity a nd quality by increasing agricultural (crops, livestock and fisheries) productivity to

Cross-cutting cooperation areas

Agro-meteorology

Early warning systems

International food processing quality

standards

Synergies exist with

Comprehensive Africa Agricultural

Development Programme (CAADP)

EAC Agriculture and Rural Development

Strategy

KEY POINTSKEY POINTSKEY POINTSKEY POINTS

55


Exercise

make the region a net exporter of food, ensuring that food is effectively moved from areas of surplus to areas of deficit within the region and improving exploitation of alternative sources of food supply from crop, livestock, marine and fisheries, and forestry systems.

iii. Improving access to food by putting in place structured trading system for food commodities and products and improving food purchasing power.

iv. Improving stability of food supply and access in the EAC region by improving capacity for emergency preparedness and response.

v. Enhance the efficiency of food utilizatio n, nutrition, and food safety.

vi. Implementation strategy and monitoring. vii. Resource Mobilization mainly from EAC Partner States and

Development Partners.

● Food Security Policy Making at the EAC LevelFood Security Policy Making at the EAC LevelFood Security Policy Making at the EAC LevelFood Security Policy Making at the EAC Level

The general EAC policy-making process is discussed above. For agriculture and food security policy making, the Agriculture and Food Security Council and Sectoral Committee are the key actors concerned at the regional level. The private sector and the civil society contribute at the experts group.

Trade and Trade and Trade and Trade and Food: National Policies in KenyaFood: National Policies in KenyaFood: National Policies in KenyaFood: National Policies in Kenya There is a need for more coherence between EAC food security and trade policy. The EAC food security policy needs to put in place measures which encourage increased production/ productivity of the sensitive products protected under the EAC CET. Unless domestic supply of the protected products is achieved, shortages and deficits of these products will be met with extra regional food imports at high import duty which worsens food access as prices increase.

Participants will discuss the implications of the priority areas of action towards food security identified in the EAC food security action plan for the period 2011-2015 and the objectives of the Kenya Agricultural Sector Development Strategy (ASDS) 2009-2020 (provided above) on climate change and related concerns in Kenya.

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CLIMATE CHANGECLIMATE CHANGECLIMATE CHANGECLIMATE CHANGE----FOOD FOOD FOOD FOOD

SECURITYSECURITYSECURITYSECURITY----TRADE POLICY TRADE POLICY TRADE POLICY TRADE POLICY

LINKAGES LINKAGES LINKAGES LINKAGES Climate change, food security and trade policies are interlinked. Interventions through one of the policy may lead to realization or non-realization of the other policies’ objectives. For example, trade liberalization policy can have both positive and negative effects on climate change, therefore affecting realization of the climate change policy objective.

On the positive linkage for example trade liberalization can help efforts to mitigate and adapt to climate change by promoting an efficient allocation of the world’s resources (including natural resources), raising standards of living (and hence the demand for better environmental quality) and improving access to environmental goods and services (World Trade Organization, 2013). The main assumption is that trade liberalization increases economic activity. The dimensions of trade liberalization effects on environment can summarized as:

• Scale: The impact of greenhouse gas emissions from the increased output or economic activity resulting from freer trade.

• Composition : The way that trade liberalization changes the mix of a country’s production towards those products where is has comparative advantage.

• Technique : Trade opening can lead to improvements in energy efficiency due to the increased availability/decreased cost of green technologies and the increased income leading to greater societal demand for green technologies.

On the negative effect, trade openness is associated with increased global warming arising from transportation and other CO2 emitting activities.

The linkage in CC-FS-T policy in Kenya can be summarized in Figure 3.1.

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Figure 3.1 : CC-FS-T policy linkages Kenya

1

2 3 4 5 6

Source: Authors

Figure 3.1 shows that climate change policy, trade policy and food security policy in Kenya are interlinked (1, 2, 3, 4, 5 & 6).

Climate change policy links to both trade policy and food security directly (Figure 3:1; 1 & 4 respectively). Achievement of the trade policy objective of competiveness, diversification and increased trade will depend on Kenya climate change policy (1). Climate change policy interventions to adapt and mitigate climate change by Kenya in agriculture, energy, livestock, and health and in ecosystems sectors is likely to lead to increased production and more trade, therefore positively contributing to the achievement of the trade policy objective. Non implementation of this policy may lead reduced trade and therefore non achievement of the trade policy objective.

Climate change policy linkage to food security policy is shown in Figure 3.1 (4). Kenya climate change adaption and mitigation measures are likely to contribute to increased food supply and increased incomes and therefore to increased food availability and access, and therefore contribute to the food security objective. Non implementation of the climate change policy is likely to contribute reduced production output (including of maize) therefore contributing to non-availability, non-accessibility and instability food availability, incomes and food prices, therefore contributing to non-achievement of the food security objective.

Trade policy interlinks with climate change and foo d security policy directly (Figure 3.1; 2 &5) and in both positive and negative manner.

On the positive links with climate change , attaining increased trade in environmental goods will contribute to achievement of the climate change policy. On the negative , Kenya trade policy (2) of trade led growth, implies increased production and trade. Achieving and sustaining industrialization and economic growth still relies on fossils which generate greenhouse gas (GHG) emissions. Trade led growth as is promoted by Kenya is associated with greater GHG emissions that are likely to negatively influence climate change contributing to non-achievement of the climate change objective.

Climate change policy Trade policy

Food security policy

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Exercise

On the positive links with food security , trade policy (5) including trade liberalization in the EAC is likely to contribute to increased trade, leading to increased variety and availability of food (at possibly reduced prices) and therefore is likely to contribute to better availability, access and stability, therefore to the food security objective. Harmonization of policies such as standards and SPS under EAC is likely to contribute to better quality of food products. Trade protectionist measures including the maintenance of sensitive products, if they achieve increased domestic production of these products may contribute to increased food availability positively contributing to the food security objective.

Trade agreements to which Kenya is party to, besides stimulating export oriented growth, can also directly benefit the country’s ability to deal with climate change if they ensure greater access to green technologies and liberalize trade in environmental goods and services. Cooperation at the EAC level on climate change mitigation will benefit Kenya.

On the negative , protectionist measures (such as maintaining of sensitive goods), in times of food deficit, lead to higher food prices (due to high import duty), therefore contributing to reduced food access (affordability), and damning achievement of the food security objective.

Food security also links with trade and climate cha nge policies (4 & 6) directly and in both positive and negative manner. On the positive linkage to the climate change policy (4), the food security goal of promoting the preservation and sustainable management of the environment and natural resources through “sustainable increase in productivity and agricultural production” will contribute to achievement of the climate change objective. On the negative linkage , increased availability of food through increased domestic production implies intensive use of productive resources with a possible increased GHG emissions therefore contributing to non-achievement of the climate change objective.

On the positive linkage with trade policy , increased productivity of agricultural products, and increased processing and marketing objectives are likely to contribute to achievement of trade policy objective of increased trade.

The interlinkage in CC-FS-T policies underscores the need for coherence in policy making in the three areas for sustainable attainment of the objectives.

Refer to the EAC sensitive list in annex 1 and discuss the likely impact of the EAC higher CET on Kenya domestic production of these products and its implications on climate change, exports and imports of these products; and on the country’s food security.

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REFERENCESREFERENCESREFERENCESREFERENCES EAC (1999). Treaty Establishing the East African Community (EAC Treaty). EAC Secretariat, Arusha Tanzania.

EAC (2003). Protocol for Sustainable Development of Lake Victoria Basin. EAC Secretariat, Arusha Tanzania.

EAC (2005). Protocol on Environment and Natural Resources Management. EAC Secretariat, Arusha Tanzania. EAC Secretariat, Arusha Tanzania.

EAC (2009). Protocol on the Establishment of the East African Community Common Market. EAC Secretariat, Arusha Tanzania.

EAC (2010). Declaration of the 12th summit of EAC Heads of State on food security and climate change. EAC Secretariat, Arusha Tanzania.

EAC (2011). East African Community Climate Change Policy (EACCCP). EAC Secretariat, Arusha Tanzania.

EAC (2011). EAC African Community Climate Change Master Plan. EAC Secretariat, Arusha Tanzania.

EAC (2011). EAC Food Security Action Plan (2011 – 2015). EAC Secretariat, Arusha Tanzania.

IISD (2011). Review of Current and Planned Adaptation Action: East Africa. International Institute for Sustainable Development.

Government of Kenya, 2010. The Kenya CAADP Compact: Implemented through Agricultural Sector Development Strategy. Ministry of Agriculture, Nairobi.

Government of Kenya (2010). National Climate Change Response Strategy. Ministry of Environment and Mineral Resources.

Government of Kenya (2011). The National Trade Policy. Ministry of Trade, Nairobi, Kenya.

Government of Kenya (2013). National Climate Change Action Plan 2013 -2017. Ministry of Environment and Mineral Resources.

Republic of Kenya (2010). The Constitution of Kenya 2010. Laws of Kenya. Government Printer, Nairobi.

Republic of Kenya (2012). National Food and Nutrition Security Policy (FNSP). Agricultural Sector Coordination Unit (ASCU), Nairobi.

Republic of Kenya (2012). National Climate Change Action Plan 2013 -2017. Ministry of Environment and Mineral Resources

WTO (2012). EAC trade policy review. Annex 2- Kenya. WTO, Geneva.

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Notes

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Notes

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Module Objective Module Objective Module Objective Module Objective ��

To allow stakeholders attending the National Training Workshops in Kenya to familiarize themselves with international institutions and their key areas of work related to climate change, food security and trade (CCFST) as well as the respective protocols, agreements and instruments as a continuum. The emphasis of this module is to encourage holistic, substantive, collective and pragmatic thinking by the participants that enables them to be familiar with the following key international institutions and how their work relates to climate change, food security and trade: the United Nations Framework Convention on Climate Change (UNFCCC), World Trade Organisation (WTO), and the Food and Agriculture Organisation of the United Nations (FAO).

Learning OLearning OLearning OLearning Outcomesutcomesutcomesutcomes ��

After going through this module, it is anticipated that the participants will sharpen their skills to interact with institutions and contribute to policy-making at the international arena that will result in favorable outcomes in dealing with the CCFST interface.

INTERNATIONAL INSTITUTIONS,

AGREEMENTS AND

INSTRUMENTS

63


INTERNATIONAL INSTITINTERNATIONAL INSTITINTERNATIONAL INSTITINTERNATIONAL INSTITUTIONSUTIONSUTIONSUTIONS Although there are a number of international institutions dealing with climate change, food security and trade issues, the UNFCCC based in Bonn, Germany, the FAO in Rome, Italy and the WTO based in Geneva, Switzerland deserve special consideration in this module. Related to the work of these three key organisations are protocols, agreements and instruments that will also be discussed in this module.

THE UNITED NATIONS THE UNITED NATIONS THE UNITED NATIONS THE UNITED NATIONS

FRAMEWORK CONVENTIONFRAMEWORK CONVENTIONFRAMEWORK CONVENTIONFRAMEWORK CONVENTION ON ON ON ON

CLIMATE CHANGE CLIMATE CHANGE CLIMATE CHANGE CLIMATE CHANGE The United Nations Framework Convention on Climate Change (UNFCCC) of 1992 remains the key intuition regarding deliberations on climate change (UNFCCC, 1992). The UNFCCC came into force in 1994 after receiving over 170 ratification instruments from Parties. The Conference of Parties (COP) is the UNFCCC’s supreme policy making institution and has a number of subsidiary bodies and working groups that support the Convention. The COP meets annually to deliberate on climate change issues, among them: mitigation, adaptation, financing, technology, education and awareness raising, and more recently, agriculture as well as loss and damage. The UNFCCC aims to minimise human induced greenhouse gas (GHG) emissions that lead to global warming and ultimately climate change (UNFCCC, 1992). Carbon dioxide (CO2), methane (CH4) and nitrous oxide (N2O) are among the chief GHGs listed in the UNFCCC. To address the escalating levels of GHGs into the atmosphere, the COPs to the UNFCCC concluded a legally binding implementation policy instrument called the Kyoto Protocol. Space is devoted in this module to deliberate on the Kyoto Protocol in detail later. As outlined in Article 2 of the UNFCCC, the single fundamental challenge of international cooperation for climate governance is how to reconcile the objective to reduce and stabilise GHG concentration in the atmosphere with economic growth and international justice (Okereke & Schroeder, 2009). It is therefore necessary to realise that there is an extreme imbalance in both the distribution and the ability of Parties to the UNFCCC to cope with the negative impacts of the changing climate. Climate change then becomes an aspect of (in) justice as it is by the developed countries yet it imposes severe risks to the poor who are least responsible and simultaneously most vulnerable to climate change impacts.

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Two fundamental principles inbuilt within the UNFCCC that address climate justice are: (1) equity, and (2) common but differentiated responsibilities of Parties (Robinson et al., 2009). The responsibilities between the developed North and the developing South are evident as these regions have: unequal material wealth, social and economic situations, different historical contributions to GHG emissions as well as different financial and technological capacities. In many occasions during international climate policy formulation, the developing countries, especially those from Africa have viewed proposals from the developed countries with suspicion (Buck et al., 2002). In the UN process, in theory, each country holds an equal vote (Shanahan, 2007). However, in reality, there is a big difference in the negotiating power of individual nations. Some have teams of well-trained negotiators, whereas others have individuals who may be meteorologists or technicians without training in negotiating. African negotiators are usually poorly trained and equipped unlike their counterparts from developed countries, with the exception of South Africa. The international climate negotiations follow a two-track system that incorporates the ‘Convention track’ and ‘Kyoto track’ (Ministry of the Environment, 2009). The negotiations within the Kyoto track are coordinated by the Ad hoc Work Group (AWG) on further commitments for Annex 1 countries5. The AWG was established under Article 3 of the Kyoto Protocol (European Parliament, 2008). Under the UNFCCC, an Informal Dialogue on Long-Term Cooperative Action was set-up in July 2005 and ended two years later in August 2007. A new arrangement – the AWG Long-term Cooperative Action was formed under the UNFCCC and keeps the two tracks separated. The two groups’ work was expected to converge leading to a post-Kyoto Protocol framework in Copenhagen. However, this did not take place until COP17 that took place in Durban, South Africa in 2011. A summary of the two track systems and key issues discussed is presented in Figure 4.1. Although agriculture as well as loss and damage are being have emerged strongly under the UNFCCC, these are being addressed under the adaptation theme.

5Thes are 37 industrialised countries given greenhouse gas emissions reduction targets.

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Figure 4.1: Two track systems and key issues discussed

Source: Authors

Within the UNFCCC, there are formally recognised main negotiating groups that include the Africa Group, Environmental Integrity Group, European Union (EU) + Umbrella Group, G77+China, Least Developed Countries (LDCs) and the Small Island Developing States (SIDS).Although most of their members are also part of the G77+China, the LDCs and SIDS want large developing nations such as China and India to reduce their emissions. This break from solidarity within the larger block is a new development (Shanahan, 2007). This trend has since changed as many developing countries now support climate justice as being reflected by growing calls on loss and damage. The negotiating process is not a simple and once off event. There exist both formal and informal negotiating platforms of which Africa has to be aware of. A summary of the negotiating process is given by Boyer (2000) and this is shown in Figure 4.2.

Climate Change Issues on Global Agenda

UNFCCC (COPs) and Kyoto Protocol (CMPs) – the two track

system

Technology Adaptation

Agriculture Loss and Damage

Mitigation FinancingCapacity

Building & Awareness

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Figure 4.2: The formal and informal processes

Source: Gupta (2000: 17)

Africa’s climate negotiation environment cannot be fully understood without taking stock of both the formal and informal negotiating arrangements. The continent is split in the formal and informal set-up to the level where speaking with one and strong climate voice becomes very difficult (Figure 4.3). Under the UNFCCC, formal negotiation groupings to which African countries are affiliated include: the Africa Group, Alliance of Small Island States (AOSIS), Least Developed Countries (LDCs) and G77+China. The formal climate negotiations are undertaken based on the two-track system that considers proposals from the two AWGs from the UNFCCC and the Kyoto Protocol. This makes it possible for all countries to be covered since some like the USA have not ratified the Kyoto Protocol.

67


Figure 4.3: Africa climate negotiation surrounds

Source: Nhamo, 2011 However, it is the informal negotiating groups that make life difficult for the African continent as speaking with one united climate voice can be remote. This is because informal groups are smaller and coherent. Their strong associations and the need to be dominant forces in either wrestling climate change leadership or maintaining a strong hold on climate leadership facilitates their sticking together. Such informal groups have hidden agendas that are usually felt and seen from their negotiating positions or lack of it in formal groups. Among some of the noticeable informal climate negotiation groupings affecting Africa are: the Organisation for Petroleum Exporting Countries (OPEC), the Major Economies Forum, the G20 and a host of smaller blocks linked to the continent’s largest GHG emitter, South Africa. These small blocks include Basic/Brics (Brazil, South Africa, India and China), G8+5 (G13) as well as Basic + the USA. The Basic + USA group is the youngest having emerged during Copenhagen 2009. The Basic protects its interests in taking advantage of belonging to Non-Annex 1 countries yet

Africa's

Climate

Negotiating

Environs

Leading to

COP15

Alliance of

Small Island

States (AOSIS)

(43 nations)

G77+China

(130 nations)

OPEC

Least

Developed

Countries

(49 nations)

G77

G20

South Africa

within Basic,

G13, G20,

Basic + USA

Africa Group

(50 nations)

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leveraging its role as an emerging global economic and military powerhouse. Basic sees further cooperation both within its boundaries and with global superpowers as an opportunity to propel its economic and industrial growth. As a member of Basic and other global groupings like the G8 and G20, South Africa usually finds itself excluded by the Africa Group during climate negotiations. Two other issues of relevance to this module are trade and food security. These last sections will now be dedicated to discussing these elements. Trade is mentioned only once in the UNFCCC under Article 3(5). The UNFCCC thus indicate:

“The Parties should cooperate to promote a supportive and open international economic system that would lead to sustainable economic growth and development in all Parties, particularly developing country Parties, thus enabling them better to address the problems of climate change. Measures taken to combat climate change, including unilateral ones, should not constitute a means of arbitrary or unjustifiable discrimination or a disguised restriction on international trade.”

It emerges from Article 3(5) that Annex 1 (developed) countries are not supposed to disadvantage developing countries in their dealing with climate change, especially unilateral measures that result in discrimination on international trade. This way, the UNFCCC directly links to the World Trade Organisation (WTO), which is discussed in depth in the next section. Coming to food security, this is addressed under Article 2 dealing with the objective of the UNFCCC. The UNFCCC thus indicate:

“The ultimate objective of this Convention and any related legal instruments that the Conference of the Parties may adopt is to achieve, in accordance with the relevant provisions of the Convention, stabilization of greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system. Such a level should be achieved within a time frame sufficient to allow ecosystems to adapt naturally to climate change, to ensure that food production is not threatened and to enable economic development to proceed in a sustainable manner.”

Unfortunately the food security issues in the UNFCCC only came to the table late in 2011. During COP17, concerned agriculture based non-governmental organisations, donors and other stakeholders rallied behind the ‘No agriculture, No deal’ campaign. This campaign aimed at raising awareness regarding the need to address agriculture issue in the UNFCCC as this sector has not been adequately addressed in the past. Basically, it was a protest that the resultant Durban Platform from the COP17 should not have been concluded if agriculture was not central to the negotiations. Unfortunately this

69


did not happen. Some of the issues the negotiators expected regarding a deal on agriculture are presented in Box 4.1. Box 4.1: Africa expects deal on agriculture at COP 17 Pretoria - African negotiators at the upcoming COP 17 in Durban should push for a binding and responsible climate deal on agriculture. Food, Agriculture and Natural Resources Policy Analysis Network (FANRPAN) CEO, Dr Lindiwe Sibanda, said African negotiators should make it their priority to secure a deal that will promote food security for climate change not to wreak havoc any further in the African continent. Addressing reporters in Pretoria about her organisation's call, 'no agriculture, no deal' for COP 17, Sibanda said: "We are grateful that COP 17 is taking place in the African continent. Now we want African negotiators to come out of this gathering with a responsible, binding climate change deal on agriculture. "Should they fail to clinch a deal at COP 17, civil society will rise and say, 'any deal that does not have agriculture as a stand-alone priority sector is a betrayal to the farming sector and anybody who needs food to survive Sibanda is also urging African political leadership to hold accountable those who will be negotiating on behalf of the continent. She further said previous commitments made in Cancun must be sealed. "Let's not keep on changing ... Our view is that COP 17 in Durban [should] produce concrete outputs that would be binding to everyone. Regarding the "no agriculture no deal campaign", Sibanda said: "We don't embark on protest campaigns, but we advocate for evidence based dialogue. Agriculture is the backbone of Africa's economy, so we will use all our power to ensure that agriculture is put on the centre stage at the COP 17, [and not] through an exit door." Sibanda said it was disturbing that developed countries were still refusing to make a binding deal to reduce atmospheric concentrations of greenhouse gases, adding that Africa would use COP 17 to push for a better global environment, improved agricultural productivity and land use. FANRPAN will play a leading role in partnering with Climate Change, Agriculture and Food Security (CCAFS) to host Agriculture Day as a side event of COP 17 on December 3. It will also advocate for climate-smart agriculture at COP 17. Climate-smart agriculture includes proven techniques such as agro-forestry, improved grazing, zero tillage and intercropping to mention but a few.

Source: FANRPAN, 2011 http://www.fanrpan.org/news/7727/themes/hiv_aids (16 February 2014)

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Parties to the UNFCCC have established four special funds: the Special Climate Change Fund (SCCF), the Least Developed Countries Fund (LDCF), both managed by the Global Environment Facility (GEF), and the Green Climate Fund (GCF) under the Convention; and the Adaptation Fund (AF) under the Kyoto Protocol. Some of these funds will be discussed in depth in this section.

Protocols, Institutions and Instruments under the Protocols, Institutions and Instruments under the Protocols, Institutions and Instruments under the Protocols, Institutions and Instruments under the

UNFCCCUNFCCCUNFCCCUNFCCC

● Kyoto ProtocolKyoto ProtocolKyoto ProtocolKyoto Protocol

Linked to the UNFCCC is the Kyoto Protocol (KP) of 1997 (UNFCCC, 1997). The KP requires that developed countries collectively reduce their greenhouse gas emissions by an average of 5.2% below the 1990 levels between the years 2008-2012 (Shin 1998, 519; United Nations 1997, 4). This was implemented under the premise that developed countries are the major emitters of GHGs. The KP entered into force on 16 February 2005. Taking cognisance of the fact that CC is a global challenge and that GHG emission reductions are necessary regardless of their spatial location, the KP establishes three distinctive flexible mechanisms to reduce GHG emissions. The so-called carbon trade mechanisms, which all result in credits being earned by the investing country include (United Nations 1997): (1) The Joint Implementation (JI) mechanism (Article 6), which earns the climate change investing country emission reduction units (ERUs), (2) CDM (Article 12), which earns the investing country certified emission reductions (CERs) and (3) Emissions Trading (ET) mechanism (Article 17), which earns the investing country assigned amount units (AAUs). Given that developing (host) countries like those from Africa cannot engage the JI and ET mechanisms and for the purposes of this paper, the following section will briefly elaborate on the CDM.

Exercise

In groups, trace the ‘No agriculture, No deal’ campaign since its launch during COP17 in Durban, South Africa and discuss progress from COP18 and COP19. In your view, how best could negotiators and their interested stakeholders present the case for it to be adopted as one of the COP decisions from the three COPs? You can also find leads to this question from section 4.3.3 summarising COP19 outcomes.

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The CDM permits developed countries to invest in projects that reduce GHGs in developing countries and earn carbon credits or carbon offsets (United Nations, 1997) including those from the agriculture sector. Article 12 of the KP spells out the aim of CDM as assisting developing countries to achieve sustainable development as well as assisting developed countries in meeting their stipulated emission reduction targets. In addition, the CDM is subject to the authority and guidance of the Meeting of Parties (MoP) to the UNFCCC that is supervised by an Executive Board. Emission reductions resulting from each CDM project are certified by operational entities designated by the MoP on the basis of: “(a) voluntary participation approved by each Party involved; (b) real, measurable, and long-term benefits related to the mitigation of climate change; and (c) reductions in emissions that are additional to any that would occur in the absence of the certified project activity” (United Nations, 1997: 14). Participation under the CDM may involve private and/or public entities. Up until recently, the only African country significantly involved in the KP mechanism is South Africa. In addition, the KP mechanism is seen as unfair to Africa and other emerging economies (Shin 1998, 519) as it is biased toward mitigation – the reduction of GHG emissions as opposed to adaptation (the ‘how’ do we live with climate change component). Further, the UNFCCC aspects pertaining to technology development and deployment as well as financing have not been adequately addressed under the KP with the issue of intellectual property rights (IPR) remaining illusive and unanswered for developing countries. Among the main technology transfer challenges for developing countries include the top down design and implementation of technology transfer initiatives and liner innovation assumptions. This approach has not yielded any significant positive outcome due to limited incorporation of the needs and beliefs of the target beneficiaries during conceptualisation and implementation. This is affirmed by illustrative cases in Craft (2013).

● Intergovernmental Panel on Climate ChangeIntergovernmental Panel on Climate ChangeIntergovernmental Panel on Climate ChangeIntergovernmental Panel on Climate Change

The Intergovernmental Panel on Climate Change (IPCC) was jointly established in 1988 by the World Meteorological Organization (WMO) and the United Nations Environment Programme (UNEP) and hosts up to 2,500 members. This special group of leaders have seen it all: from the sceptics and dissidents that had a strong voice, determined and well-resourced to dismiss the phenomenon to a now receptive and better understanding world with regards to the subject matter here. In terms of organisation, the IPCC is headed by the Plenary consisting of WMO and UNEP member countries. Below it is the Bureau and the IPCC Secretariat with head offices at the WMO in Geneva. The higher tiers explained above oversee three working groups namely (UNEP, 2009, p. 5):

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• Working Group I: that assesses physical scientific aspects of the climate system and CC;

• Working Group II: which evaluates vulnerability of socio-economic and natural systems to climate change, negative and positive consequences, and options for adapting to it; and

• Working Group III: that looks at options for mitigating CC through limiting or preventing GHG emissions and enhancing activities that are working to remove them from the atmosphere.

Each of the three working groups has produced reports within their specialisation areas since 1990. Figure 4.4 shows hoe the IPCC has been highlighting CC issues. Figure 4.4: Synthesis of IPCC Assessment Reports (1990-2007)

● Green Climate FundGreen Climate FundGreen Climate FundGreen Climate Fund

The Green Climate Fund (GCF) was a major outcome of the UNFCCC from the Copenhagen Accord of 2009. The GCF for developing countries would witness support of US$10 billion annually leading to a kick-start Fast Start Climate Finance (FSCF) of US$30 billion that was to be realised by December 2012. The US$30 billion (FSCF) is earmarked for mitigation (including Reducing Emissions from Deforestation and Forest Degradation plus – REDD+), adaptation, technology development, deployment and transfer and

• Scientific assessment of CC

•Impact Assessment of CC

•The IPCC Response

Strategies

•The Science of CC

•Impacts, Adaptation and

Mitigation of CC: Scientific-

Technical Analysis

•Economic and Social

Dimenssions of CC

•IPCC Second Assessment


Vulnerability

•The Physical Science Basis

•Mitigation

•Synthesis Report

•The Scientific Basis


Vulnerability

•Mitigation

•Synthesis Report

2001

IPCC Third

Assessment

Reports on CC

2007

IPCC Fourth

Assessment

Reports on CC

1990

IPCC First

Assessment

Reports on CC

1995

IPCC Second

Assessment

Reports on CC

73


capacity building (UNFCCC, 2009). In September 2010, the FSCF website hosted by the UNDP was launched in partnership with UNEP, the UNFCCC and the World Bank (UNDP, 2010). The FSCF was a fund to start-up to GCF. However, the GCF has not been that successful, given the challenges major global donor economies faced after the 2008 global financial crisis. The website (http://www.faststartfinance.org) was developed in response to international calls from key stakeholders in climate policy demanding publicly available and reliable information on the FSCF pledged during Copenhagen. The information pack on the amounts pledged highlights potential financial opportunities that developing countries including the EAC regional block can leverage on. This is a process the EAC is currently pursuing through the accreditation process. Details on the amounts committed against the pledges are shown in Table 1. Table 4.1: Fast Start Climate Finance pledges and committed amounts

Country Total pledged (million)

Total committed (million) Programmes As of

19/09/10 As of

28/11/10 As of

19/10/10 As of

28/11/10 Australia AUD 599 - - - 5 Belgium EUR 150 - EUR 42,0 - - Canada CAD 400 - - - - Denmark DKK 1 200 DKK 308 DKK 308,0 - - EUEUEUEU EUR 150 EUR 50 EUR 50,0 - 8 Finland EUR 110 - - - 7 France EUR 1 260 EUR 1 260 EUR 1 260,0 - - Germany EUR 1 260 - EUR 291,9 7 51 Luxembourg EUR 9 - EUR 9 - - Malta EUR 1 - EUR 1 - 2 Netherlands EUR 310 EUR 310 EUR 310,0 7 7 Norway - USD 357 USD 357,0 11 7 Portugal EUR 36 - EUR 12,0 - - Slovenia EUR 8 - - - 2 Spain EUR 375 - - - 6 Sweden EUR 800 - - - 17 Switzerland CHF 140 - - - - UKUKUKUK GBP 1 500 GBP 511 GBP 511,0 7 7 USA - - USD 1 700,0 - -

Source: Nhamo (2011)

Debates on the modalities of operationalizing the GCF such as the governing bodies and the host countries have been ongoing since COP16 in Cancun, Mexico, to COP17, COP18 and the latest COP, COP19. The current decision on the fund is presented below.

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● Adaptation FundAdaptation FundAdaptation FundAdaptation Fund

The Adaptation Fund was established to finance concrete adaptation projects and programmes in developing countries such as Kenya that are particularly vulnerable to climate change. More than US$165 million has been set aside to increase climate resilience in 25 countries around the world. The Adaptation Fund is supervised and managed by the Adaptation Fund Board (AFB). The Board is composed of 16 members and 16 alternates and holds periodic meetings throughout the year. The Global Environment Facility (GEF) provides secretariat services to the AFB and the World Bank serves as trustee of the Adaptation Fund, both on an interim basis. Financing for the Adaptation Fund comes mainly from a 2% levy of CDM projects. Adaptation projects fit right into the agriculture space and can enhance food security and trade in agricultural goods. Adaptation Fund finance to projects and programs are grant funding. There is no requirement for co-financing. The protocols and application procedures for the Adaptation Fund are available on the fund website at: https://www.adaptation-fund.org/.

● State of Negotiations from COP19State of Negotiations from COP19State of Negotiations from COP19State of Negotiations from COP19

There are always contestations in negotiations, mainly between the developed and developing countries. As highlighted earlier, such disagreements are over the key issues including financing, adaptation, mitigation, and technology and capacity development. The last COP before the finalisation of this manual is COP19 – commonly referred to in the climate negotiation circles as Warsaw 2013. This COP took place between 11 and 23 November 2013. The key decisions are identified by the UNFCCC (http://www.c2es.org/international/negotiations/cop-19/summary, Accessed 9 March 2014) as follows:

Ad Hoc Working Group on The Durban Platform for Enhanced Action: “In Durban, parties set a 2015 deadline for an agreement covering the post-2020 period, in the form of a ‘protocol, another legal instrument or an agreed outcome with legal force under the Convention applicable to all Parties’. This formulation implied a major turning point in the evolution of the UNFCCC, in particular by eschewing the strict differentiation between developed and

Exercise

Discuss any experiences your country has in formulating a proposal and approaching the Adaptation Fund for financing? How has the exercise benefited CCFST programmes in the country?

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developing countries reflected in the Kyoto Protocol (which set legally binding emission targets for the former and no new commitments for the latter)”.Parties agreed that COP20 should make a decision regarding the actual modalities of implementing the Durban Platform.

Loss and Damage: The interim measure established the International Mechanism on Loss and Damage (IMLD) and placed it under the existing Cancun Adaptation Framework. Although still contested by the G77 and China, the establishment of the mechanism is a step in the right direction for many vulnerable Least Developed Countries and the Small Island Developing States.

Finance: “As part of the Copenhagen and Cancún agreements, developed countries pledged $30 billion in climate finance from 2010 through 2012 (the “fast start” period) and to mobilize $100 billion a year in public and private finance for developing countries by 2020. Developing countries, concerned by a lack of progress in ramping up finance, pushed in Warsaw for an interim goal of $70 billion by 2016, but developed countries refused.” However, the developed countries agreed to start submitting new biennial reports indicating their strategies for scaling up climate finance.

Measurement, Reporting and Verification: “A key component of the Cancún Agreements was a new set of transparency mechanisms to strengthen the reporting and review of parties’ implementation efforts. These include new biennial reports and processes of international assessment and review for developed countries (IAR) and international consultations and analysis (ICA) for developing countries”. In Warsaw, Parties agreed on the composition, modalities, and procedures of the teams of technical experts that will analyze developing countries’ biennial reports under ICA.

Framework for Various Approaches/New Market Mechanism: “In Doha, efforts toward establishing a new market mechanism under the UNFCCC were subsumed under a broader work programme on a Framework for Various Approaches, which also takes in non-market approaches.” Warsaw did not make good progress here as discussions remained tied down in the Subsidiary Body on Scientific and Technological Advice (SBSTA) and never reached the COP.

Reducing Emissions from Deforestation and Forest Degradation plus (REDD+): There was good progress regarding the implementation of REDD+. Guidelines for forest countries to develop “reference levels” against which their efforts to reduce deforestation will be measured were adopted. Norway, the UK, and the United States pledged a total of $280 million for REDD+ efforts.”

No, agriculture no deal campaign: This did not see the light of the day during COP19 and some stakeholders were angry about it. “[T]here was fury with the

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turn of events at COP19 when livestock keepers and farmers learnt of the exclusion of substantive discussions on agriculture”6.

THE WORLD TRADE THE WORLD TRADE THE WORLD TRADE THE WORLD TRADE

ORGANISATIONORGANISATIONORGANISATIONORGANISATION The World Trade Organisation (WTO) was formed in 1995 after the end of the cold war to regulate commerce between states. It succeeded the General Agreement on Tariffs and Trade (GATT) of 1947. A practice was established where the members would meet periodically to review tariff issues. The meetings came to be known as the ‘Rounds of Negotiations’ and would entail the formulation of binding principles and policies. These rounds include the Geneva Round 1947; the Annecy Round 1949; the Torquay Round 1950-51; the Geneva Round 1955-56; the Dillon Round 1961-62; the Kennedy Round 1963-67; the Tokyo Round 1973-79; the Uruguay Round7 1984-94 which established the WTO and the Doha Round which is yet to be concluded. The stalemate in the Doha Round has been precipitated by the contentious issues mainly concerning agricultural subsidies A breakthrough albeit partly was struck which includes Trade Facilitation, some agricultural issues and a few development proposals in Bali in December 2013. Since the establishment of the WTO, its membership has been growing. As of 2 March 2013, there were 159 WTO members. All the EAC member states are WTO members and their dates of joining are as follows (http://www.wto.org/english/thewto_e/whatis_e/tif_e/org6_e.htm, accessed 9 March 2014): Kenya (25 July 1995), Kenya (1 January 1995), Rwanda 922 May 1996). Tanzania (1 January 1995) and Uganda (1 January 1995).

6 http://chimalaya.org/2013/11/16/activists-fury-as-cop19-sidelines-agriculture-once-more/, accessed 9 March 2014

7The Uruguay Round was a decisive moment as it resulted in the famous Uruguay Round Agreements which include the Marrakech Agreement Establishing the World Trade Organization. The Uruguay Round started in 1986 and ended in 1994 and involved 123 countries.

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Objectives, Functions and Structure of the WTOObjectives, Functions and Structure of the WTOObjectives, Functions and Structure of the WTOObjectives, Functions and Structure of the WTO The WTO is established under the Marrakech Agreement. The preamble of the agreement lists the objectives of the WTO to include:

a) To raise the standards of living of its members; b) To generate employment amongst its members; c) To increase trade amongst the WTO member states; d) To increase productivity amongst the WTO member states; and e) To reduce trade barriers amongst the WTO member states

The functions of the WTO include

• To oversee the implementation and administration of the WTO agreements;

• To provide a forum for negotiations; and • To provide a Dispute Settlement Mechanism

It should be noted that nowhere in the Marrakech Agreement and even the entire GATT and WTO documentation is it stated that the objectives of GATT and the WTO system are to liberalize trade or promote free trade. In fact, the phrases ‘free trade’ or ‘liberalization’ are not used in WTO documents. However, the practical consequence of implementing these agreements is to liberalize trade. The WTO exists both as an institution with defined structures as well as a trading system. As a trading system, it entails a complex web of agreements and codes of the GATT as well as the principles, rules and decisions of the Rounds of Negotiations. It further includes all the GATT panel decisions as well as those of the Dispute Settlement Body established under the DSU. The WTO further embodies all decisions of the Contracting Parties. It is this system and the rules that make up the body of law known as international trade law. As an institution, the WTO is made up of a single treaty namely the Marrakech Agreement which established the WTO that was signed on 30th April 1994 in Marrakech, Morocco and came into being on 1st January 1995. The WTO replaced the GATT Secretariat as the organization charged with the overall administration of the multilateral trading regime. Its basic structure includes the following bodies: The Ministerial Conference; The General Council; The Trade Policy Review Mechanism; The Dispute Settlement Body (DSB); Councils; The Secretariat and Directorate; and Committees. The WTO has established committees to deal with specific issues of importance. These have specific mandates to focus on relationships between the WTO and issues relating to sustainable development. There is the Committee on Trade and Development which was established in 1965 under

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GATT and was retained under the WTO system. There is also the Committee on Trade and Environment which was formed from the Group on Environmental Measures and International Trade (GEMIT) established in 1971 and this is a committee that will receive further attention here. It is noteworthy that the previous body (GEMIT) did not meet until 1992. These committees are actively engaged in discussions involving their thematic areas of focus. Given the central role played by the Committee on Trade and the Environment within the context of this module, space is now devoted to discuss this further. The Committee on Trade and the Environment (CTE) was established as a successor to the Group on Environmental Measures and International Trade established in 1971. Perhaps telling of the uneasy relationship between trade and the environment, GEMIT had never met since its inception until 1992 in light of the Rio Earth Summit. The Marrakech Agreement set out the role of the CTE as entailing the responsibility:

• To identify the relationship between trade measures and environmental measures, in order to promote sustainable development; and

• To make appropriate recommendations on whether any modifications of the provisions of the multilateral trading system are required, compatible with the open, equitable and non-discriminatory nature of the system.

In light of the foregoing mandate, the CTE developed a 10-item agenda for work. However, the CTE’s mandate was adjusted in light of the 2001 Doha Ministerial Conference. One key development from this conference was the Doha declaration, which in paragraph 31 charged the CTE to focus primarily on three issues:

• The relationship between the WTO and MEAs; • Procedures for information exchange between MEA Secretariats and

the WTO, and the criteria for granting MEA secretariats observer status in WTO meetings; and

• The reduction or elimination of barriers to trade in environmental goods and services.

The significance of this mandate was to change the CTE from a mere discussion forum to one with the mandate to carry out trade negotiations. These negotiations would then feed to the final outcome of the Doha Development Round. In pursuance of its previous mandate, the CTE was further instructed to give particular attention to three issues. This, however, was not in the sense of carrying out negotiations but merely to promote the development of debate around these issues. They include:

• The effect of environmental measures on market access, and the environmental benefits of removing trade distortions;

• The relevant provisions of the TRIPS Agreement; and

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• Labeling requirements for environmental purposes.

Core Principles of the WTO Trading SystemCore Principles of the WTO Trading SystemCore Principles of the WTO Trading SystemCore Principles of the WTO Trading System Linked to discussions above are the Core Principles of the WTO Trading System governing international trade enshrined in the GATT agreement that include; The Most Favored Nation (MFN) Treatment Principle and The National Treatment Principle. The MFN Treatment Principle entails an undertaking to the effect that a country will extend any privilege, concession or benefit given to one trading partner to all other trading partners. With regard to goods, it applies to all imported products into the country. Countries are required to extend any special treatment given to the goods or services of one country to all WTO members for “like products” irrespective of their origin. This has implications on food security since it enhances food availability by obligating member countries to not discriminate in terms of trade preferences. These goods and services include those from agriculture with a direct link to food security. The principle of National Treatment fosters non-discrimination and links well with provisions in the UNFCCC on trade and food security discussed earlier. There are, however, exceptions to the National Treatment and Most-Favored-Nation Rules that affect food availability. Some important exceptions to note include the Economic Integration Agreements, and Domestic Subsidies under Article III:8 (b) of GATT. Since Kenya is signatory to the EAC integration agreement, food availability can be increased by sourcing tariff free food products from EAC member countries in cases of shortages. Domestic subsidies are of interest in terms of agriculture and food security. Domestic Subsidies allow payment of subsidies exclusively to domestic producers (including agriculture) as an exception to the national treatment rule. This can provide Kenya with the leverage to provide subsidies to farmers with a view to boosting food production. However, it is recognized that subsidies may have a negative trade distorting effect by enhancing the competitiveness of the agricultural products unfairly relative to the trading partners and other WTO members. For this reason, the Agreement on Subsidies and Countervailing Measures imposes strict disciplines on the use of subsidies. Subsidies are popular in the agriculture sector and have been heavily used by developed economies.

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Key Key Key Key WTO AgreemeWTO AgreemeWTO AgreemeWTO Agreementsntsntsnts wwwwith Special Focus on the ith Special Focus on the ith Special Focus on the ith Special Focus on the

Environment (and/or climate change) and food Environment (and/or climate change) and food Environment (and/or climate change) and food Environment (and/or climate change) and food

securitysecuritysecuritysecurity

At the conclusion of the Uruguay Round of Negotiations, a number of agreements were concluded that made the final agreement establishing the WTO. In total, about 19 separate agreements that can easily be accessed from the WTO website were concluded that form the legal basis of the WTO. Some of these agreements all Members acceded to while others were acceded by only some Members. However, all members of the WTO are obligated to abide by the agreements. The agreements constitute the rule-book for international trade through which members operate a non-discriminatory trading system that spells out the rights and their obligations. In this regard, awareness of the existence of the key agreements is important since Kenya is a member of the WTO.

● The GATT 1994The GATT 1994The GATT 1994The GATT 1994

This is the key agreement that anchors the WTO system. It is largely the same as the 1947 Agreement save for a few adjustments to address changes made under the Uruguay Round. The Agreement contains 37 Articles as well as explanatory understandings and addenda. It is important to examine provisions that relate to environmental issues.

•••• The Preamble

The preamble paragraph is one of the key changes that were made to the GATT 1947 agreement. This gave the WTO a mandate whose objectives extend to sustainable development, environmental protection, as well as addressing the needs and concerns stated in accordance with a country’s peculiar circumstances. It states that the Members:

“Recognizing that their relations in the field of trade and economic endeavor should be conducted with a view to raising standards of living, ensuring full employment and a large and steadily growing volume of real income and effective demand, and expanding the production of and trade in goods and services, while allowing for the optimal use of the world’s resources in accordance with the objective of sustainable development, seeking both to protect and preserve the environment and to enhance the means for doing so in a manner consistent with their respective needs and concerns at different levels of economic development.”

This provision is important as it offered a new dimension in the interpretation of WTO Agreements. More importantly, it offered a chance for the WTO Dispute Settlement Mechanism (DSM) decisions to be interpreted with

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environmental and sustainable development considerations. While there has not been significant shift in terms of the decisions relating to environmental matters, this nevertheless has provided a chance for the WTO to incorporate environmental concerns. An example is the application of Articles I and III of the GATT relating to the MFN and National Treatment rules. GATT Panels have traditionally used four criteria to determine “like products” in a manner that examines whether they are in direct competition for the market share in the sense of being “commercially substitutable”. These include:

• Physical properties, nature and quality of the products; that is, the extent to which they have similar physical characteristics

• The end-use of the products, that is, the extent to which they are substitutes in their function

• The tariff classification of the products, that is, whether they are treated as similar for customs purposes and

• The tastes and habits of consumers, that is, the extent to which consumers use the products as substitutes – determined by the magnitude of their cross elasticity of demand.

Based on the above criteria, a country which has two “like products” circulating in its market but one is environmentally friendly because it probably doesn’t emit ozone-depleting substances will violate rules if it gives preferential treatment to the environmentally friendly good. In the unadopted case of US – Restrictions on Imports of Tuna, the US banned Tuna with the reason that these tuna were produced in a manner resulting in high rates of dolphin mortality. It was observed that within the meaning of Article III, “like products” apply only to the quality, content and physical characteristics of products. The manner in which the products are produced – e.g., Process and Production Methods (PPMs) was also stated to be irrelevant. Further, it was observed that one country cannot tell another what its environmental regulations should be? These are significant decisions that will be discussed in more depth in the following paragraph. The WTO Appellate Body has been reluctant to add risks to human health or the environment as a separate criterion for the determination of the likeness of a product. In the EC Asbestos Case, the likeness criterion was extended to include the risks that a product poses to human health or the environment. In this instance, it was determined that risks arising from one product’s physical characteristics and not from another would constitute a legitimate argument against likeness. As such based on GATT Article III: 4 on national treatments, the attempt by a panel to state that there was a “like products” relationship between asbestos and PCG fibres and between cement-based products containing asbestos and those containing PCG fibres was ruled inconsistent.

•••• Quantitative Restrictions and Licenses

Article XI of the GATT places a limit on the trade restrictive measures that a member can take. The use of import and export bans or quotes is prohibited

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whether this is done through simple bans or limitations or thorough import and export licensing schemes. The rationale for the prohibition is that volume-based measures of such kind are more trade distorting than price-based measures such as tariffs and taxes. An exception to Article XI is given for agricultural products as they are mostly regulated under the Agreement on Agriculture. This provision introduces an important perspective regarding trade and the environment regarding the relationship between MEAs and the WTO. A case in point is the Convention on International Trade in Endangered Species (CITES) and the Basel Convention, that permit the importation of hazardous trans-boundary waste and impose import licenses and permit requirements for trade in the material they control. No challenge has been brought to the DSU under these provisions thus far.

•••• Environmental Exceptions

Article XX of the GATT 1994 gives exceptions under which a member can escape breach of non-discrimination provisions. Therefore, any government challenging a certain measure (whether environmental or otherwise) must argue violation of GATT 1994 or any other agreement under the WTO realm. However, a state whose measure has been challenged may argue that such measures are not inconsistent with the WTO as they are exempted under GATT 1994 Article XX relating to general exceptions. Of these exceptions, Articles XX (b) and XX (g) relate more closely to the environment. Article XX reads thus:

Subject to the requirement that such measures are not applied in a manner which would constitute a means of arbitrary or unjustifiable discrimination between countries where the same conditions prevail, or a disguised restriction on international trade, nothing in this Agreement shall be construed to prevent the adoption or enforcement by any contracting party of measures:...

(b) Necessary to protect human, animal or plant life or health; (g) Relating to the conservation of exhaustible natural

resources if such measures are made effective in conjunction with restrictions on domestic production and consumption;

If a country wants to use environmental exceptions under Article XX, two criteria need to be fulfilled. First, it must establish provisional justification for using Article XX and must also provide final justification by clearly indicating that the measure in question does not contravene the lead paragraph or chapeau as quoted above. The second paragraph requires a state to show that a measure is “necessary” to protect the environment. This necessity test has been interpreted in some GATT cases in a manner that categorically ruled out environmental laws with extra-territorial application in the sense that they seek to protect the environment outside the enacting country’s borders.

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Agreements in the WTOAgreements in the WTOAgreements in the WTOAgreements in the WTO

● The Agreement on Technical Barriers to Trade The Agreement on Technical Barriers to Trade The Agreement on Technical Barriers to Trade The Agreement on Technical Barriers to Trade

The Agreement on Technical Barriers to Trade (TBT) deals with standards-related measures and is meant to ensure that regulations, standards, testing and certification procedures do not create unnecessary obstacles to trade. These obstacles are considered as non-tariff barriers to trade. Although countries are prohibited from instituting such measures, the agreement recognizes their right to adopt standards they consider appropriate for the protection of human, animal or plant life or health, as well as the for the protection of the environment or to meet other consumer interests. These measures may come in the form of requirements for technical performance standards a product is required to meet for it to be imported or exported. Such may include energy-efficiency standards for machinery as well as environmental, health and labor standards or the standards required during the life cycle of a product such as forest products being from sustainably managed forests. The agreement gives direction as to when such barriers may be allowed and required the following conditions to be met before such measures are instituted: notification of measures, transparency in developing the rules, and the use of international standards when appropriate, among other requirements. The agreement contains binding disciplines relating to government-instituted standards as well as a Code for Good Practice for both governments and nongovernmental or industry bodies, which are standards that are prepared, adopted, and applied voluntarily. There are over 200 standard-setting bodies which apply the code. The agreement requires that procedures used to decide whether a product conforms to relevant standards or not have to be fair and equitable. It discourages methods that would give domestically produced goods an unfair advantage over imported ones. The agreement also encourages mutual recognition of standards where countries recognize each other’s procedures for assessing whether a product conforms to the required standards. Such recognition eliminates the need for products being tested twice, first by the exporting country and then by the importing country. In response to CC, developed nations are implementing trade regimes aimed at addressing CC. Carbon-trade based response measures such as Border Tax Adjustments (BTAs) and Product Carbon Footprint (PCF) are among these regimes. Two typical examples related to product carbon footprints are: (1) the forced shift from exporting bottled wine to bulk containers in South Africa (Ntombela, 2013) that led to lost employment opportunities and (2) the food miles saga that witnessed the East African Community (EAC) horticulture industry dump flowers in the mid to late 2000s (Garside et al., 2008).

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● The Agreement on Sanitary and Phytosanitary Standards The Agreement on Sanitary and Phytosanitary Standards The Agreement on Sanitary and Phytosanitary Standards The Agreement on Sanitary and Phytosanitary Standards

The Agreement on Sanitary and Phytosanitary Standards (SPS Agreement) is complementary to the TBT Agreement. It seeks to promote standards that are “necessary” to protect humans, animals and plants from certain hazards associated with the movement of plants, animals and foodstuffs in international trade. These may include measures instituted to protect the environment or human, animal and plant health against:

• Risks from pests, diseases and disease-related organisms entering the country with the traded goods; and

• The risks arising from additives, contaminants, toxins or disease-causing organisms in foods, beverages or feedstuffs.

The implementation of the SPS standards have been associated with restrictive measures on international trade in goods particularly food related products. This has implications for Kenya in terms of the trade in food related products. High SPS standards applied to Kenya agricultural exports increase the compliance costs for Kenyan farmers and thus reduce the competitiveness of their products in foreign markets. Similarly, food availability in cases of food shortages domestically will be restricted if Kenya applies high standards. The absolute standards set in the TBT and SPS Agreements usually create complications in the conduct of trade. These rules sometimes set the bar so high that developing countries are unable to export their products as explained.

● The Agreement on AgricultureThe Agreement on AgricultureThe Agreement on AgricultureThe Agreement on Agriculture

The AoA, covers a number of issues. However, those addressed in this module include: Market Access (Article 4), Domestic Support Commitments (Article 6), and Export Subsidy Commitments (Article 9). The Agreement on Agriculture (AoA) emerges as one of the two main sectorial agreements from the Uruguay Round Agreements. These sectoral agreements make provision for specific rules in the liberalization of agricultural products (Glipo, 2003). Since the main goal of the AoA is to establish a fair and market-oriented trade mechanism in agriculture, the AoA therefore obliges parties to increase market access and reduce trade distorting agricultural subsidies. The developed countries should have implemented the AoA by 2000 and those from developing regions by 2004. However, this has not been the case. To this end the AoA has come under heavy criticism when it comes to food security and poverty reduction in developing regions as the playing field has not been leveled, given the continued heavy subsidization of agricultural production in developed countries. The main components of the AoA are: market access, domestic support and export subsidy. Through tariffication, all countries were scheduled to remove

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all non-tariff barriers such as import bans, import quotas and the like and convert them into tariffs. Domestic support deals with national government’s support to local producers and three categories of domestic support exist in the AoA namely: amber Box, Green Box and Blue Box. Further explanations on these categories are given in Box 2. Lastly, countries that were providing export subsidies were due to reduce them based on their 1988-1990 levels by an average of 36% in value and 21% in volume for the developed countries over 6 years. For the developing countries the reductions were supposed to be by 24% and 14% respectively over 10 years (Glipo, 2003). Box 2 : Domestic Support • Amber Box: These are measures that are considered trade-distorting and

are therefore subject to reduction. These are support that have effect on production like price support and input subsidies.

• Green Box: These are assumed not to have effects on production and

therefore considered not trade-distorting. They are acceptable under AoA and are not subjected to reduction. They include support for research, marketing assistance, infrastructure services, domestic food aid, etc.

• Blue Box: These are measures such as direct payments to farmers that

are intended to limit production. These are considered acceptable and are not subject to reduction, either.

Source: Glipo (2003: 2)

Given the foregone, there has been reservation on the AoA to address food security in developing countries like Africa and the EAC. In fact more evidence points to the fact that since the implementation of the AoA in 1995, the capacity of developing regions to address food security, both in the short, medium and long-term time horizons have been dwindling. Agriculture subsidies from the developed countries have increased and there has been an artificial flooding of cheap food imports in developing countries, an element that has resulted in the substitution of domestic food production (Glipo, 2003). In as much as there were decreases in the Amber Box subsidies there were huge increases in the other two boxes (Green and Blue). The USA alone had up to $50 billion in subsidies for the Green Box in 1998 compared to $10 billion in the Amber Box. The USA Farm bill of 2002 provided additional support of $180 billion up to 2012. Glipo’s (2003) arguments have found favour with other writers too. Hawkes and Plahe (2010) summarize their frustration on AoA and issues pertaining to the right to food in developing countries. In their view:

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“The AoA established a set of rules, which are biased against developing countries, constraining the State from acting to respect, protect and fulfill the right to food. The WTO AoA is a set of rules which undergird a deeply unfair system that imposes a free trade model on the poor and carves out protection for the riches players in the global market. .. It legitimizes and promotes increased agribusiness dumping, depressing world market prices (Hawkes and Plahe, 2010: 16).”

In additional support of Glipo’s observations, ActionAid (2005) notes the following regarding the WTO AoA:

“In developing countries, agricultural and rural development is central to reducing poverty. In its work with poor communities and small-scale producers in over thirty-five developing countries, ActionAid has witnessed the negative impacts of agricultural trade liberalization It believes that food security, poverty reduction and sustainable development should be at the heart of the negotiations to reform the Agreement on Agriculture (AoA).”

To alleviate the suffering from the AoA, ActionAid presents a number of calls, among them, the phasing out of Amber Box subsidies and the elimination of Blue Box subsidies. Details regarding other recommendations from ActionAid then are presented in Box 3. Box 3 : Action Aid Calls on AoA reforms • The phasing out of Amber Box subsidies in developed countries. • The immediate elimination of Blue Box subsidies. • A review of disciplines in the Green Box in developed countries to assess

their impact on production and trade. All Green Box subsidies must be fully decoupled from production (and targeted only at the delivery of public goods). Production related subsidies should be eliminated. The amount of remaining Green Box subsidies should be capped.

• A prohibition of agricultural dumping. • The introduction of a counter balancing mechanism within the AoA for

developing countries. The aim would be to address the problem of the accumulated effects of high levels of production and trade distorting subsidies provided to agriculture from developed countries by allowing developing countries to adjust their tariff levels in accordance with the level of subsidies in the exporting country. No proof of injury would be required from the importing country. The sole existence of subsidies to a product would be sufficient to trigger the measure.

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• An agreement that only developing countries should have the flexibility to

deal with price volatility and import surges through the special safeguard mechanism. The mechanism should be available for all products.

• An agreement whereby developing countries should have the long-term

flexibility to exempt agricultural products from tariff reductions – on the basis of a positive list approach - on the grounds of concerns related to food security, rural development, poverty alleviation and livelihood conservation. They should have the flexibility to increase low bound tariffs and no compensation should be required.

Source: Action Aid (2005: 2-3)

Notably, in nine instances the AoA makes reference to food security. Under Article 12(a), highlights that “the Member instituting the export prohibition or restriction shall give due consideration to the effects of such prohibition or restriction on importing Members' food security”. In Annex 2 (3), the AoA addresses public stockholding for food security purposes. National stockholding programmes in developing countries whose operation is transparent and conducted in accordance with officially published objective criteria or guidelines shall be considered to be in conformity with the provisions of the AoA.

The section dealing with the UNFCCC provided a detail account on the manner in which negotiations take place. It further presented contestations from both formal and informal negotiation groups under the UNFCCC and how decisions are reached.

Task i: In groups, briefly identify the channels through which issues on trade and climate change relevant to Kenya are collated at institutional level and relayed to the Kenya negotiating team. Explain how the formal and informal negotiation groups on trade and/or climate are organized in Kenya highlighting the associated participation challenges.

Exercise

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FOOD AND AGRICULTUREFOOD AND AGRICULTUREFOOD AND AGRICULTUREFOOD AND AGRICULTURE

ORGANISATIONORGANISATIONORGANISATIONORGANISATION

There is no doubt that the Food and Agriculture Organization of the United Nations (FAO) plays a major and critical role in food security globally and across Africa (http://www.fao.org/about/en/). The mandate of FAO has strong roots in food security. FAO has recent achievements in the food security and climate change domains (Box 4).

Exercise

A number of issues emerged under the section dealing with AoA. In groups, attempt to provide answers to the tasks listed below.

Task i: Discuss the implications of the Green Box issues surrounding Domestic support on Kenya’s agricultural exports and food security

Task ii: The USA Farm Bill of 2002 provided additional support of $180 billion up to 2012. What is the possible low-hanging policy solutions feasible for your country in response to the scenario from the USA presented here?

Task iii: Provide an audit in terms of subsidies or lack thereof provided for the agriculture sector in your country. In the event that there are none such subsidies, is this the best situation? If not, what policy measures need to be put in place?

Task iv: Assuming you were to reform the AoA and strongly CCFST, what policy positions would you put across for your country?

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Box 4 : FAO’s recent food security achievements

• 2012: In a landmark decision the Committee on World Food Security (CFS) endorsed the new Voluntary Guidelines on the Responsible Governance of Tenure of Land, Fisheries and Forests in the Context of National Food Security on 11 May 2012. FAO launched a major fund-raising campaign with the aim of securing USD 20 million to translate into implementing guidelines, aimed at helping governments safeguard the rights of people to own or access land, forests and fisheries. For the 2012 International Year of Cooperatives, FAO took the lead and partnered with WFP and IFAD and others to help the focus on improving the lives of millions of smallholder farmers and their families.

• 2011: In a historic victory of veterinary science, FAO that thanks to a decades-long international cooperative effort, the fatal cattle disease known as rinderpest had successfully been eradicated in the wild. In July, FAO declared a state of famine in two regions of Somalia and appealed for US$120 million for response to the drought across the Horn of Africa. FAO Member countries elected José Graziano da Silva of Brazil as Director-General, to take office in January 2012.

• 2010: As the worst floods ever to hit Pakistan wiped out seed stores and killed millions of head of livestock, FAO responded with distribution of wheat seed to half a million farming families in time for the planting season. An additional 235 000 families received feed, medicine and shelter for their animals.

• 2009: FAO holds a World Summit on Food Security on 16-18 November to inject new urgency into the fight against hunger. Sixty heads of state and government and 192 ministers unanimously adopt a declaration pledging renewed commitment to eradicate hunger from the Earth at the earliest date.

• 2008: FAO holds a high-level conference on 3–5 June on the impact of climate change and the biofuel boom on food security and food prices. Attended by 43 heads of state and 100 government ministers, the conference adopted a resolution to increase assistance and investment in developing world agriculture. The 16th session of the UN Assembly invites FAO to facilitate the “International Year of Potato.” The resolution noted that the potato is a staple food in the diet of the world’s population, and affirmed the role that the potato could play in achieving internationally agreed development objectives, including the United Nations Millennium Development Goals.

Source: http://www.fao.org/about/en/ (20 February 2014)

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The The The The seven core mandates of the FAOseven core mandates of the FAOseven core mandates of the FAOseven core mandates of the FAO

1. Facilitate and support countries in the development and implementation of normative and standard-setting instruments such as international agreements, codes of conduct, technical standards and others. This work will be developed at global, regional and national levels through global governance mechanisms, policy dialogue and support and advice, coupled with the development at country level of the necessary policies and institutional capacities for their implementation.

2. Assemble, analyze, monitor and improve access to data and information, in areas related to FAO’s mandate. This includes the development of global and regional trends, perspectives and projections and the associated responses by governments and other stakeholders (e.g. policies, legislation and actions); also direct support to countries in the development of institutional capacities to respond to the identified challenges and possible options.

3. Facilitate, promote and support policy dialogue at global, regional and country levels. FAO as an intergovernmental organization is especially well positioned to help countries at national and international levels to organize policy dialogue activities directed to improve the understanding on important issues and to the establishment of agreements between stakeholders and/or countries.

4. Advise and support capacity development at country and regional level to prepare, implement, monitor and evaluate evidence-based policies, investments and programmes. This includes advice and support for activities directed to institutional strengthening, human resource development and direct advice to programme implementation.

5. Advise and support activities that assemble, disseminate and improve the uptake of knowledge, technologies and good practices in the areas of FAO’s mandate. FAO as a knowledge organization needs to be at the forefront of knowledge and technology in all the areas of its mandate and be a source and organizational instrument to support countries in the utilization of available knowledge and technologies for development purposes.

6. Facilitate partnerships for food and nutrition security, agriculture and rural development between governments, development partners, civil society and the private sector. FAO has a broad mandate that includes major development problems that need to be targeted from a broad and comprehensive perspective. However, FAO will focus its work on the areas in which it has special competence and will establish strong partnerships with other organization to cover other complementary actions required.

7. Advocate and communicate at national, regional and global levels in areas of FAO’s mandate. FAO has a main responsibility in providing communication and information services in all areas of its mandate to countries and the development community and to strongly advocate on corporate positions in relation to relevant and urgent development issues.

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On dissemination of information, FAO has FAOSTAT, which is a statistical database on agriculture, nutrition, fisheries, forestry and food aid agriculture, nutrition, fisheries, forestry and food aid covering over 210 countries; statistics on agriculture including on crops, livestock, irrigation, land use, fertilizer, pesticide consumption, and agricultural machinery; forestry (statistics on imports and exports of woods and paper); fisheries and aquaculture information to help promote responsible aquaculture and fisheries; forestry country profiles (distribution of world forests); Global Livestock Production and Health Atlas (GLiPHA). More specifically, statistics is provided by four different bodies:

• Agro-maps providing spatial database of subnational agricultural land-use statistics

• AQUASTAT (information system of water and agriculture) • CountrySTAT (a national statistical information system for food

and agriculture) • TERRASTAT houses databases containing information on major

soil constraints, soil in deserts and dryland areas, population distribution, steeplands analysis, land degradation severity and human-induced land degradation due to agricultural activities

Other information support include: PAAT platform to promote integrated trypanosomiasis control; and a global strategy to improve agriculture and rural statistics which provides a vision for national and international statistical systems to produce the basic data and information to guide decision-making.

Exercise

In groups, participants to discuss the impact of a FAO office withdrawal will have on it country with regard to food security in the light of CC and trade.

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● NOTESNOTESNOTESNOTES

The authors thank Mr. Edgar Odari for providing useful notes on this section

The MFN rule is incorporated in the GATT, GATS and TRIPS Agreements. Their interpretation in each agreement, however, varies according to the nature of the disciplines.

For further reading on WTO cases decided on this issue, read: Appellate Body Report, European Communities – Regime for the Importation, Sale and Distribution of Bananas, WT/DS27/AB/R, adopted 25 September 1997, DSR 1997:II, 591; Panel Report, European Communities – Regime for the Importation, Sale and Distribution of Bananas, Complaint by Ecuador, WT/DS27/R/ECU, adopted 25 September 1997, modified by Appellate Body Report, WT/DS27/AB/R, DSR 1997:III, 1085; and Panel Report, Canada – Certain Measures Affecting the Automotive Industry, WT/DS139/R, WT/DS142/R, adopted 19 June 2000, modified by Appellate Body Report, WT/DS139/AB/R, WT/DS142/AB/R, DSR 2000:VII, 3043

Panel Report, European Communities – Measures Affecting Asbestos and Asbestos-Containing Products, WT/DS135/R and Add.1, adopted 5 April 2001, modified by Appellate Body Report, WT/DS135/AB/R, DSR 2001:VIII, 3305

Exercise

Are you aware if your country (region) has ever participated in any of the UNFCCC COP negotiations? If yes, which one(s)? What were the key resolutions in that COP meeting? Do these resolutions have any implication on food trade in your country?

93


REFERENCEREFERENCEREFERENCEREFERENCESSSS

Actionaid (2005). The WTO Agreement on Agriculture. Washington DC: ActionAid. Buck, M., Kollman, K., &Carius, A. (2002). International Environmental Policymaking and Transatlantic Cooperation: Setting the Agenda for Rio + 10 Berlin: Ecological Centre for International and European Environmental Research. Craft Brianna (2013), “The Least Developed Countries and Technology Transfer under the United Nations Framework Convention on Climate Change: Has the Convention Addressed the Stated Needs of the Vulnerable?”, unpublished MA thesis, Brown University European Parliament (2008). State of play of post-Bali negotiations Brussels: European Parliament Secretariat. Garside, B., Macgregor, J. and Vorley, B. (2008). Review of food miles, carbon, and African horticulture: Environmental and development issues. London: IIED. Glipo, A. (2003). The WTO AoA: Impact on farmers and rural women in Asia. Manila: Asia-Pacific Network for Food Sovereignty. Gupta (2000). On behalf of my delegation: A survival guide for developing country climate negotiations. Institute for Environmental Studies: Netherlands. Hawkes, S. and Plahe, J.K. (2010). The WTO’s Agreement on Agriculture and the right to food in developing countries. Monash: Monash University Business and Economics. Ministry of the Environment (2009). Negotiations on a new international climate agreement Copenhagen: Ministry of the Environment. Nhamo, G. (2011). From Brazil’s CDF to Kyoto’s CDM: Revisiting equity issues in global climate governance. In Laurence Boulle (Edt). Globalisation and Governance. SiberInk, Cape Town. pp. 130-145. (978-1-920025-39-7). Ntombela, S. (2013).The Importance of Policy & Regulatory Reform in the Environmental Sector in Africa. Powerpoint presented during the 2nd African Energy and Environment Workshop, Pretoria, South Africa, 9 October 2013. Okereke, C. & Schroeder, H. (2009). How can justice, development and climate change mitigation be reconciled for developing countries in a post-Kyoto settlement? Climate and Development, 1, 10-15.

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Robinson, M. & Miller, A. M. (2009). Expanding Global Cooperation on Climate Justice London: Brettonwoods Project. Shanahan, M. (2007). A journalist's guide to the Bali climate conference London: IIED. Shin, S. (1998) ‘Developing country's perspective on COP3 development (Kyoto Protocol)’, Energy Policy, 26, 519–526. UNDP. (2010). Fast Start Climate Finance. [On-line]. Available: http://www.faststartfinance.org (accessed 19 September 2010. UNEP United Nations Environment Programme (2009). Climate in Peril: A popular guide to the latest IPCC reports. (Nairobi: UNEP). UNFCCC (2009). Copenhagen Accord Copenhagen: United Nations Framework Convention on Climate Change. UNFCCC. (1992). United Nations Framework Convention on Climate Change. Bonn: United Nations Framework Convention on Climate Change Secretariat,. United Nations. (997). Kyoto Protocol to the United Nations Framework Convention on Climate Change. Kyoto United Nation Secretariat.

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Notes

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Notes

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A SIMULATION EXERCISEA SIMULATION EXERCISEA SIMULATION EXERCISEA SIMULATION EXERCISE

Module Objective Module Objective Module Objective Module Objective ��

To allow stakeholders attending the National Training Workshops to use the knowledge acquired during the training as well as to improve their policy/programme formulation skills in an interactive setting thus leading to greater multi-stakeholder understanding. The emphasis of this module is to encourage holistic, substantive, collective and pragmatic thinking by the participants that enables them to sharpen skills to interact with institutions and contribute to policy-making at the national level.

Learning OLearning OLearning OLearning Outcomesutcomesutcomesutcomes ��

After going through this module, it is anticipated that the country participants will be able to apply the knowledge gained from modules 1-3 and be able to initiate, formulate, revise, or monitor current programmes and policies on CCFST linkages in the country. This will result in participants being able to come up with real solutions and recommendations to concrete policy or programme issues on CCFST linkages together with different stakeholders.

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Task (i): In groups, participants are required to retrieve selected national policies and/or programme documents and review them drawing up a list of key pointers evaluating the adequacy or lack thereof in the manner in which the CCFST linkages are addressed.

Task (ii): In groups, participants to prepare a PowerPoint from task ‘i’ above emphasising the need to mainstream CCFST into national policy and decision making processes.

Task (iii): Group representative to present the findings from task ‘ii’ and

clearly show how such findings can be mainstreamed into the national policy and decision making processes in the country and the selected policy and/or programme.

Some national policies and programmes are proposed below

CONTRIBUTIOCONTRIBUTIOCONTRIBUTIOCONTRIBUTION TO THE N TO THE N TO THE N TO THE

DEVELOPMENT OF NEW ADEVELOPMENT OF NEW ADEVELOPMENT OF NEW ADEVELOPMENT OF NEW AND/OR ND/OR ND/OR ND/OR

REFINEMENT OF EXISTIREFINEMENT OF EXISTIREFINEMENT OF EXISTIREFINEMENT OF EXISTING CCFST NG CCFST NG CCFST NG CCFST

POLICY REGIMESPOLICY REGIMESPOLICY REGIMESPOLICY REGIMES This section presents hands on activities that give a chance to participants to apply the knowledge acquired during the training. Hence the participants will have the chance to put the acquired knowledge into practice, learn how to contribute to real policy-making processes in the country and learn how to interact with different institutions and stakeholders involved in the CCFST space.

EXERCISE 1

99


Local media houses always somehow report on CCFST issues. Your task as an individual is to identify a CCFST issue featured in any of the major local media houses during this current training week and or the past week and analyse the following:

Task (i) how are the three interfaced issues of CCFST under consideration in this course being addressed?

Task (ii) after undergoing this training, what additional issues would you

have brought in the article and why?

Task (iii) usually the media raises issues that are real, either from current national or localised debates. Some of these issues may result in responsible line ministries taking them up leading to the refinements of existing policies or the drafting of new policies altogether. From the media article selected, how best can the issues coming up find themselves on the national agenda regarding CCFST? If already on the national agenda, how best can they be taken further? Your response should identify relevant line ministry/ministries, key actors and proper channels of communication.

The following are some of the national policies to select from. However, participants can chose additional policies to review.

1. National Climate Change Response strategy (2010). http://cdkn.org/wp-content/uploads/2012/04/National-Climate-Change-Response-Strategy_April-2010.pdf

2. National CC Response Strategy Action Plan (2013-2017). http://cdkn.org/wp-content/uploads/2012/12/Kenya-Climate-Change-Action-Plan_Executive-Summary.pdf

3. Agricultural sector development strategy2010–2020. http://www.ascu.go.ke/DOCS/ASDS%20Final.pdf

4. National Food and Nutrition Security (2011). http://www.kilimo.go.ke/kilimo_docs/pdf/National_Food_and_Nutrition_Security_Policy.pdf

EXERCISE 2

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ANNEX 1: EAC SENSITIANNEX 1: EAC SENSITIANNEX 1: EAC SENSITIANNEX 1: EAC SENSITIVE VE VE VE

PRODUCTS LISTPRODUCTS LISTPRODUCTS LISTPRODUCTS LIST HS code Description MFN duty Milk and cream not concentrated nor containing

added sugar

1 0401.1000 Of a fat content, by weight, not exceeding1% 60% 2 0401.2000 Of a fat content, by weight, exceeding 1% but

not exceeding 6% 60%

3 0401.3000 Of a fat content, by weight, exceeding 6% 60% Milk and cream concentrated or containing

added sugar

4 0402.1000 In powder, granules or other solid forms, of a fat content, by weight, not exceeding 1.5%

60%

5 0402.2110 Specially prepared for infants 60% 6 0402.2190 Other 60% 7 0402.2910 Specially prepared for infants 60% 8 0402.2990 Other 60% 9 0402.9110 Specially prepared for infants 60% 10 0402.9190 Other 60% 11 0402.9910 Specially prepared for infants 60% 12 0402.9990 Other 60% Wheat and meslin other than durum wheat 13 1001.9020 Hard wheat 35% 14 1001.9090 Other 35% 15 1005.9000 Maize (corn) other than seed 50% 16 1006.1000 Rice in the husk (paddy or rough) 75% or US$200/MT

whichever is higher 17 1006.2000 Husked (brown) rice 75% or US$200/MT

whichever is higher 18 1006.3000 Semi-milled or wholly milled rice, whether or

not polished or glazed 75% or US$200/MT whichever is higher

19 1006.4000 Broken rice 75% or US$200/MT whichever is higher

20 1101.0000 Wheat or meslin flour 60% 21 1102.2000 Maize (corn) flour 50% Cane sugar 22 1701.1110 Jaggery 35% 23 1701.1190 Other 100% or

US$200/MT whichever is higher

Beet sugar 24 1701.1210 Jaggery 35% 25 1701.1290 Other 100% or


26 1701.9100 Other sugar containing added flavouring or 100% or

101


HS code Description MFN duty colouring matter US$200/MT

whichever is higher 27 1701.9910 Other sugar for industrial use 100% or


28 1701.9990 Other sugar 100% or US$200/MT whichever is higher

29 2402.2010 Cigarettes not exceeding 72 mm in length including the filter tip

35%

30 2402.2090 Other 35% 31 2403.1000 Smoking tobacco, whether or not containing

tobacco substitutes 35%

32 2523.2900 Portland cement other than white 55% 33 3605.0000 Matches, other than pyrotechnic articles of

heading 36.04 50%

34 5208.5110 Khanga, Kikoi, and Kitenge 50% 35 5208.5210 Khanga, Kikoi, and Kitenge 50% 36 5209.5110 Khanga, Kikoi, and Kitenge 50% 37 5210.5110 Khanga, Kikoi, and Kitenge 50% 38 5211.5110 Khanga, Kikoi, and Kitenge 50% 39 5212.1510 Khanga, Kikoi, and Kitenge 50% 40 5212.2510 Khanga, Kikoi, and Kitenge 50% 41 5513.4110 Khanga, Kikoi, and Kitenge 50% 42 5514.4110 Khanga, Kikoi, and Kitenge 50% 43 6211.4210 Khanga, Kikoi, and Kitenge 50% 44 6211.4310 Khanga, Kikoi, and Kitenge 50% 45 6211.4910 Khanga, Kikoi, and Kitenge 50% 46 6302.2100 Bed linen, printed, other than knitted or

crocheted, of cotton 50%

47 6302.3100 Bed linen, not printed, other than knitted or crocheted, of cotton

50%

48 6302.5100 Table linen, other than knitted or crocheted, of cotton

50%

49 6302.9100 Other toilet linen and kitchen linen than of terry towelling, of cotton

50%

50 6305.1000 of jute or of other textile bastfibres of heading 53.03

35%

51 6309.0000 Worn clothing and other worn articles 45% or US$0.3/kg whichever is higher

52 8309.1000 Crown corks 40% 53 8506.1000 Manganese dioxide 35% 54 8506.3000 Mercuric oxide 35% 55 8506.4000 Silver oxide 35% 56 8506.5000 Lithium 35% 57 8506.6000 Air-zinc 35% 58 8506.8000 Other primary cells and primary batteries 35%

Source: WTO (2012)

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