Increased trade is beneficial to Africa in that it supports poverty alleviation and is able to create new employment opportunities on the continent, said Finance Minister Trevor Manuel.
It promotes regional integration and helps to expand intra-regional trade “while infusing new capital and technology into the continent”, he told the Parliamentary Network on the World Bank, being held at the South African Parliament.
“It is quite evident that multilateral trade reform and regional integration holds the promise of economic growth for both developed and developing countries. A strong external sector would help integrate African countries into the global economy and ensure that it is not left behind as the global marketplace expands.”
It is precisely for these reasons that the collapse of the Doha round talks, originally termed a “development round”, is “a serious indictment on the intention of developed countries to increase market access to the developing world”.
“Agricultural subsidies, phytosanitary rules and other non-tariff barriers remain significant obstacles to increased trade between Africa and the developed world. They distort markets and impoverish millions, thereby reducing the incentives for African countries to invest in improving their supply-side infrastructure.
“This is especially true for least developed countries, and is exactly why trade and aid must go hand-in-hand for these countries. Aid for trade needs to be addressed as a critical step in the Doha round,” said Manuel. — I-Net Bridge