The African Growth and Opportunity Act (Agoa) will be renewed before it expires in September. That’s a solid bet. When, exactly? For how long? And will SA be treated the same as other African beneficiaries? Those are questions awaiting an answer. Holding things up is strong opposition from most Democrats, and some Tea Party Republicans, to giving US President Barack Obama “trade promotion authority” (TPA). He needs this to conclude his Trans-Pacific Partnership (TPP), a trade pact with 11 “like-minded” nations — China is not on the list — that rim the Pacific on both sides. Republicans are using Agoa as a hostage to obtain the Democratic votes they need to give TPA to Obama, with whom on this they are in rare agreement. Without TPA, there will be no TPP. Japan, New Zealand and other partners have said they will not make final offers without assurances that whatever Obama gives them in return will not be tampered with by Congress. The Democrats may be in the minority in both the House of Representatives and the Senate, but because of dissension within their own ranks, Republicans need help from the Democrats to give Obama what he wants. They have yet to get it. The American Federation of Labour and Congress of Industrial Organisation, a labour federation, blames stagnant incomes and rising inequality on too much free trade. It has promised to withhold campaign money from any Democrat who votes for TPA. For some, the threat is serious enough: there is...

KISUMU Four border counties want to integrate their trade ties with other East African countries. Narok, Kisumu, Migori and Homa Bay representatives are meeting at Imperial Hotel in Kisumu to discuss regional integration. East African Affairs principal secretary John Konchella Kochella yesterday told the press the border counties want to harmonise rules on cross-border trade. Source: All Africa

WHILE the World Trade Organisation (WTO) has always fostered a global multilateral trade, the current global trend in trade is increasingly based on regional trade through regional trade agreements (RTAs) between regional blocs — such as the European Union (EU), the North American Free Trade Agreement (Nafta), the Association of Southeast Asian Nations (Asean) and the Common Market of Eastern and Southern Africa (Comesa). One of the main objectives of the regional trade agreements is to reduce trade barriers. Many observers believe that regional trade agreements deepen market integration and complement efforts by the World Trade Organisation to liberalise international markets, while acknowledging that regional trade agreements can open up markets, but others contend that these agreements also distort trade and discriminate against nonmember countries. Beyond regional trade, there is a growing trend to establish transpacific and transatlantic trade and partnerships mainly based on free trade agreements (FTAs). Such an approach has led to negotiations to establish the Transpacific Trade Partnership (TTP) and the Transatlantic Trade and Investment Partnership (TTIP). The TTP brings together the US, Japan, Australia and other countries in the Asia-Pacific region and aims at trading based on some of the World Trade Organisation’s principles. The TTIP brings together the US and the EU, which are global trading leaders and partners. It is becoming quite clear that, if successful, these partnerships will determine the future of global trade in the coming decades. Trade between countries or different regional trading blocs has become unequal based on trade policies...

NAIROBI, March 25 (Xinhua) -- Investments in trade infrastructure as well as the removal of bureaucratic and procedural barriers to economic integration have positioned the East Africa region as the destination of choice for doing business, a study has shown. A study published on Wednesday by the TradeMark Africa (TMA), a donor-funded organization formed to help regional states speed up integration, said the harmonization of product standards has expanded the East African Community (EAC) trade basket. Encouraging results achieved over the past year, including investments in key ports have resulted in reduced cargo transit times on East Africa's main transport corridors, and accelerated implementation of the EAC's Single Customs Territory, said TMA Annual Report. TMA Chief Executive Officer Frank Matsaert said the reduction of average time to clear goods at Kenya's Mombasa port and transport them to Kampala, Uganda to fours days has buoyed the investments in the EAC region. Matsaert said the reduction in the number of customs declarations by 90 percent leading to an increase in trade volumes, an example of fuel imports into Uganda which has increased from 32. 1 million litres to 108 million litres are behind surge in investments. "The results presented in this annual report point to an ever improving trade environment which is expected to spur investments and ultimately benefit the citizens of East Africa," he said in Nairobi. He said poor infrastructure, delays in cargo clearance and customs procedures at the port contribute to the high cost of doing business along the...

Local manufacturers are seeking joint ventures with their East African Community counterparts as one of the ways to penetrate regional markets. The move could help strengthen the country's manufacturing and exports sectors, thus accelerating economic growth, according to Eusebe Muhikira, the acting head of export and business development at the Rwanda Development Board (RDB). Muhikira added that the development will also help build the competencies of Rwanda producers, making them more competitive. "We want to build a value chain model that will help us enhance product quality to be able to strengthen our footprint in the region," Muhikira said while speaking during a business-to-business meeting between Burundi and Rwanda entrepreneurs in Kigali last week. The meeting was organised by RDB and Traid Links. It attracted 26 companies from Burundi as well. Muhikira told Business Times on the sidelines of the meeting that RDB and the private sector are already working with firms from all regional countries under the market-linked programme. "We want to link Rwandan companies with potential distributors across the region through organised sales missions. We have so far linked local producers with 15 companies from Kenya, Tanzania and Uganda. Six Burundian companies from the construction sector have also indicated willingness to join the initiative," Muhikira said. The market-linked programme is being implemented by Traid Links Africa in partnership with TradeMark Africa. According to Bernard O'Connell, the programmes implementation manager, the initiative will increase the market for Rwanda products, as well as improve profitability through reduced costs. "We also...

A Nigerian friend called me a few weeks ago to ask about a Kenyan musician he had seen on Viva, a popular sports show on a local TV station. That is Nigerians for you! Anywhere you meet them, they will ask about Mombasa, Al-Shabaab, our president, and other things that seemingly should not matter to a foreigner. Most of the Nigerians I have interacted with have more than a passing interest in events in Kenya, which explains why more than 500 government officials and businessmen joined President Goodluck Jonathan on his inaugural visit to Kenya in September 2013. Most Nigerians are interested in events in countries that could offer opportunities to their insatiable investment appetite. Kenyans, on the other hand, especially the younger generation, have little interest in events beyond their borders. They would rather follow gossip columns and television series on the lives of their favourite celebrities and socialites. Many social media fanatics are not even aware that Nigeria, Africa’s largest economy, postponed its elections. President Uhuru Kenyatta is big on increased intra-Africa relations. He has been to Nigeria twice since he came to power. On one such visit, he led more than 40 members of the private sector for a state visit and trade mission to Nigeria. Agriculture, the backbone of Kenya’s economy, was at the centre of discussions. Nigeria could import fresh produce from Kenya. Feeding 170 million people should be sufficient incentive for Kenyan farmers to increase their produce for export. OIL EXPORTERS Kenya Airways has...

Encouraging results achieved over the past year, including investments at key ports have resulted in reduced cargo transit times on East Africa’s main transport corridors, and accelerated implementation of the EAC’s Single Customs Territory. Harmonisation of product standards has expanded the EAC trade basket says TMA Annual Report. [caption id="attachment_6830" align="alignleft" width="600"] Minister Works and Transport John Byabagambi, Ms. Edith Mwanje Permanent Secretary Ministry of East African Community Affairs, Frank Matsaert CEO Trade Mark East Africa and Karin Anderson Programme Chair Investment Committee Trade Mark East Africa pose for a photo during the official hand over of the 2013/2014 TMA Annual Report to the Ugandan Government in Kampala[/caption] Kampala, 24 March 2015. Investments in trade infrastructure as well as the dismantling of bureaucratic and procedural barriers to economic integration, is positioning the EAC region as the destination of choice for doing business, TradeMark Africa (TMA) said today as they launched their annual report covering the period 2013/2014. TMA further stated that its partnership with the East African Governments has resulted to great progress in delivering 7 key One Stop Border Posts (OSBP) across East Africa this year to increase physical access to markets for both formal and informal traders. Pilot operations at the Kobero/Kabanga between Tanzania and Burundi borders already indicate a two day reduction in transit times at Kabanga for cargo trucks, as well as reduction in tedious formalities for traders which have had adverse impact on time and costs of business in the past. This announcement was made...

TANZANIA Ports Authority’s (TPA) services are set to improve following completion of a major Information and Communication Technology (ICT) project connecting the headquarter’s office and its 13 branches throughout the country. The project connects TPA with the Tanzania Telecommunications Company Limited (TTCL) with Fibre Optic Cable through a system called Multiprotocal Label Switching Virtual Private Network (MPLS VPN). Through MPLS VPN system, TPA’s voice, data and internet services are set to be efficient and facilitate in improving services. “This project implemented by TTCL will help us improve ports’ services and those for our clients,” the TPA Acting Director for ICT, Mr Killian Chale, said during the official project handover ceremony held in Dar es Salaam over the weekend. TPA’s branches connected with the system include headquarter office, Mwanza Port, Kigoma Port, Mtwara Port, Tanga port, Dar es Salaam Port, Mafia Port, Lindi Port, Kilwa, Pemba, Bukoba, Nansio and Musoma Ports. According to Mr Chale, communication between one port and another will now use CISCO extension that is less expensive and efficient. “Paper works have tremendously dropped, hence increasing efficiency,” he noted. He explained that the project was part of the ongoing efforts to improve Tanzania’s ports and make them competitive. He urged TTCL to continue with such a healthy relations with TPA to make the country’s ports modern in terms of ICT. TTCL’s Chief Technical Officer, Mr Senzige Kisenge hailed TPA for the decision to upgrade ICT infrastructure. “Your decision conforms to the government’s mission to use technology in attaining...

The United Kingdom of Great Britain and Northern Ireland's Department for International Development (DFID) mandated the International Trade Centre (ITC) to design and implement a project, called 'Supporting India's Trade and Investment Preferences for Africa' (SITA). The Confederation of Indian Industry (CII) is the implementation partner for the project in India. Speaking at an event to mark the launch of the project, Sumanta Chaudhuri, Joint Secretary, Department of Commerce, Government of India stated that the India Africa relationship was based on collaboration and participation and the SITA project fits well within that framework. He felt that the SITA project would help take the India Africa economic relationship to a different level. Despite an enormous untapped potential for trade expansion between India and Africa, data reveal that a limited number of products are currently being traded. India's trade with Africa is concentrated in certain sectors and countries, and it is dominated by exports of primary commodities. While the potential for export diversification exists, it may not be realized without targeted intervention. India is well-positioned as a partner to improve the productive and export capacities of African partner countries. With the growing importance of South-South cooperation, India's expertise can be leveraged to build trade capacities in African partner countries through the sharing of knowledge, technology and lessons learnt. The project responds to the challenges that selected East African countries - Ethiopia, Kenya, Rwanda, Uganda and the United Republic of Tanzania - face in increasing and diversifying exports. It also addresses trade priorities...

According to a report by The East African… Kenya, Uganda and Rwanda have agreed to reduce the cost of sending a SMS across the three countries. During a regional summit in Kigali, which was held on 6 March 2015, the three partner states agreed that the wholesale price for SMS within the region will not be more than USD 0.03 per SMS, including all applicable taxes, while the retail price will not exceed USD 0.06 cents per SMS. This is less than half the current market rates. Last year the countries already agreed a reduction in roaming voice rates, under the One Network Area agreement. The drop in roaming charges is expected to stimulate growth in the telecommunications sector and promote cross-border trade. This is according to a report by The East African. Source: IT News Africa