Africa Africa
Africa
Africa
Rooma PILLAY NARRAINEN Manager – Trade Division
Mauritius Chamber of Commerce and Industry Bangkok –14 December 2017
SYMPOSIUM ON PREFERENTIAL TRADE AGREEMENTS AND INCLUSIVE TRADE
Insights from the Private Sector
MAIN TRADE AGREEMENTS/ARRANGEMENTS
USA -AGOA
Europe -EPA
SADC / COMESA / EAC/ TRIPARTITE /ECOWAS …
Continental FTA
IMPORTANCE OF TRADE PREFERENCES FOR MAURITIUS
PREFERENTIAL TRADE AGREEMENTS:
MAURITIUS AT A GLANCE
Population: 1.2 million
Area: 2040 km2
GDP per capita : +/-USD 9600
High reliance of exports on trade preferences
1970s
Lomé/Cotonou Convention
- Secured market for Sugar
- Development of the Sugar Sector
- High Unemployment
1980s
- Development of the Textiles & Clothing Sector
- Duty-free and quota-free access
- Employment of Women
1990-2000
- Consolidation of existing industries
- Emergence of New Industries / Value Added
- Preserved Tuna, Jewellery, Light engineering-
Evolution of the Mauritian Economy
2000
AGOA
- Preferences to the US market
- Market Diversification
- New market for Garment Sector
2000-2010
Regional Markets
COMESA /SADC FTA
- Access to new regional markets
- New range of products exported (SMEs,..)
2011-
African Integration
- Tripartite FTA
- Continental FTA
Evolution of the Mauritian Economy
DIVERSIFICATION OF EXPORTS MARKETS
61.7%
11.8% 8.3%
18.1%
47.3%
22.9%
11.4% 18.4%
EU AFRICA USA OTHER
Main Export Markets (2006-2016)
2006 2016
ECONOMIC BENEFITS
PREFERENTIAL TRADE AGREEMENTS:
Sectoral Contribution to GDP (1970-2016)
0
10
20
30
40
50
60
70
80
90
100
197
0
197
2
197
4
197
6
197
8
198
0
198
2
198
4
198
6
198
8
199
0
199
2
199
4
199
6
199
8
200
0
200
2
200
4
200
6
200
8
201
0
201
2
201
4
201
6
Primary Secondary Tertiary
Employment of Women by Sector
25% 26%
17%
6%
61% 60%
52%
19% 14% 14%
31%
75%
0%
10%
20%
30%
40%
50%
60%
70%
80%
1985 1995 2005 2015
Agriculture Textiles and Clothing Services
CHALLENGES FOR THE PRIVATE SECTOR
PREFERENTIAL TRADE AGREEMENTS:
MAIN CHALLENGES
• Key role of the Private Sector Input in trade negotiations
– Ensure the effective participation of the private sector
• Enabling Framework
– Need to be established at national level to ensure effective
and inclusive implementation of trade agreements
• Dynamic trading environment
- Integration of new issues in trade agreements
EFFECTIVE PARTICPATION OF THE PRIVATE SECTOR
MAIN CHALLENGES FOR THE PRIVATE SECTOR IN AFRICA
National Level
• No private sector co-ordination (one voice)
• No structured platform for public/ private dialogue
• Lack of capacity - Financial, Technical Experts,…
At Regional Level
• Lack of capacity in regional private sector institutions
• Lack of coordination
• Difficult to input in trade negotiations process
Structured Public-Private Sector
Dialogue
Input in Trade Negotiations
(Industries, Rules of Origin, Sensitive
products..)
Strong and Structured Private Sector Institutions
(Chambers, Industry Associations)
Follow-up on Implementation
Issues
(NTBs, NTMs, ..)
Public-Private Sector Interaction
ENABLING FRAMEWORK
MAKING TRADE AGREEMENT EFFECTIVE AND INCLUSIVE:
Trade Agreements
Industrial Policy
Export Promotion
Trade Facilitation
Business Support
Structures
ENABLING FRAMEWORK AT NATIONAL LEVEL
Industrial Policy
Investment Framework
Industrial Policy (competitiveness, norms, technology, IP, ..)
Access to finance
Export Promotion
Facilitate access to markets
Assistance to exporters
Market Information
Enabling Framework
Skills Development
Demand Driven
(required by industry)
Continuous training and upgrading of skills
IT/Digital skills
Legal/ Social Measures
Social Measures
Labour Laws
Support Structures
(Working women, SMEs, Youth.)
Business Support Structures
Trade Facilitation
Efficient clearance procedures
Single Window – E-Docs
Transparency / NTBs /NTMs
Port Efficiency
Logistics/ Infrastructure
Road/Air/Maritime
Connectivity
Trade Facilitation
WORLD BANK - EASE OF DOING BUSINESS 2018
Top African Countries
Ranking Ease of doing business
Trading across borders Index
1 Mauritius 25 70
2 Rwanda 41 87
3 Morocco 69 65
4 Kenya 80 106
5 Botswana 81 50
6 South Africa 82 147
7 Zambia 85 150
8 Tunisia 88 96
9 Seychelles 95 88
10 Lesotho 104 40
PRIORITY ISSUES FOR PRIVATE SECTOR
National Level - Enabling framework to support the implementation of PTAs - Business support structures to make trade more inclusive (women,
youth, SMEs,…) New Issues to be included as Priority Areas: Go beyond traditional market access issues (tariffs, rules or origin, cooperation on other trade issues,....)
- Implementation of the WTO Trade Facilitation Agreement
- Mutual recognition Agreements on Standards and SPS issues
- Trade in Services (Logistics, Communications, Professional Services, Financial Services,…)
- Movement of Business Persons, Professionals, and Skilled Labour
- Investment – Facilitation and protection of investments
THANK YOU
