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Malawi presentation2 Malawi presentation2 Presentation Transcript

  • FOSTERING EQUITY AND ACCOUNTABILITY IN THE TRADING SYSTEM (FEATS ) ROLE OF THE MINISTRY OF AGRICULTURE IN THE TRADE POLICY MAKING PROCESS BY MoAFS
  • PRESENTATION OUTLINE
    • INTRODUCTION
    • OBJECTIVES
    • APPROACH TO DEVELOPING THE PAPER
    • TRADE POLICY MAKING INSTITUTIONS IN MALAWI
    • MoA AND TRADE POLICY DEVELOPMENT IN MALAWI
    • BENEFITS OF A STAKEHOLDER-WIDE CONSULTATIVE TRADE POLICY MAKING PROCESS.
    • MAJOR ISSUES OF PARTICIPATORY PROCESSES IN THE TRADE POLICY MAKING
    • RECOMMENDATIONS
  • 1. INTRODUCTION
    • ROLE OF AGRICULTURE IN MALAWI’S ECONOMY
    • Contributes 38% to GDP.
    • Employs 85% of workforce.
    • Contributes 90% to foreign exchange.
    • Government’s aim increase agricultural productivity & profitability
    • For equitable household food security, income and employment and sustainable utilization of natural resources
  • 1. INTRODUCTION
    • ROLE OF AGRICULTURE IN MALAWI’S ECONOMY
    • 1987 agricultural markets liberalisation, beginning of government company privatization.
    • Increase economic efficiency for promoting trade.
    • Malawi’s trade performance dismal with a negative visible trade balance.
    • Reflects skewed trade benefits between trading partners.
    • Formulation and application of trade policies and strategies for equitable distribution of trade benefits.
    • Mejn with Cuts implement FEATS to raise awareness for better coherence between development & trade policies.
  • 2. OBJECTIVES OF THE PAPER
    • Over all objective was to evaluate extent MoA is consulted in trade policy making process in Malawi. Specifically,
    • Identified trade policy development stages MoA is involved in Malawi.
    • Identified the nature of response of the MoA to new trade policies of the MoIT.
    • Outlined benefits of a stakeholder-wide consultative trade policy making process.
    • Outlined major issues in the trade policy making process in Malawi
    • Made some recommendations on the appropriate trade making processes.
  • 3. APPROACH TO DEVELOPING THE PAPER
    • Literature based.
    • Used literature on trade policy development, trade policies, trade strategies, agricultural policies, agricultural economics and agricultural trade.
    • Literature included those from international and domestic trade related organisations.
  • 4. Role of the MoA in Trade Policy Making Process
    • Trade Policy Making Institutions in Malawi
    • The Malawi constitution guides trade policy making process.
    • Trade policy legislation
    • Support from Act of Parliament
    • Subsidiary registration
    • MoIT conferred with responsibility to make trade policies
    • Tariffs are the main Malawi’s trade measure in the context of its trade policies.
  • 4. Role of the MoA in Trade Policy Making Process
    • Trade Policy Making Institutions in Malawi
    • Other trade measures: SPS, customs inspection and clearance, customs valuation, duties, import taxes, and export taxes
    • MoIT also negotiates and implements multilateral, regional and bilateral trade arrangements.
    • MoIT does it through MoFAIC
    • Other ministries participate through IMCs & Regional Working Groups
  • 4. Role of the MoA in Trade Policy Making Process
    • Trade Policy Making Institutions in Malawi
    • IMCs & RWG include: SADC-NWGN, Agriculture cluster & NWGTP among others.
    • IMCs also provide technical expertise and recommendations on multilateral, regional and bilateral trade arrangements.
    • SADC-NWGN specifically provides a consultative public/private sector forum for examining the Malawi-SADC trade issues.
    • Agriculture cluster examines SPS measures in COMESA and between EU and COMESA countries.
  • 4. Role of the MoA in Trade Policy Making Process
    • Trade Policy Making Institutions in Malawi
    • NWGTP advises government on all trade related legislative and policy matters.
    • It also provides a framework for monitoring and evaluating the implementation of Malawi’s trade agreements
    • It also provides a framework for ensuring conformity with the agreed rules
    • It facilitates consultation and cooperation among the private and public sector parties to promote trade
  • 4. Role of the MoA in Trade Policy Making Process
    • MoA and Trade Policy Development
    • MoA consulted during trade policy diagnostic survey planning.
    • It is also consulted at implementation-data collection and stakeholder consultation workshops.
    • This helps to assess potential impact of trade policies on agriculture.
    • But provides minimal ownership of policy making process to MoA.
  • 4. Role of the MoA in Trade Policy Making Process
    • MoA and Trade Policy Development
    • At formulation/review stage, MoA consulted on Competition & Trade Policies, Export Strategy, SADC & COMESA Market Integration Agenda, AGOA and WTO Policies.
    • MoA achieves it by attending IMCs and NWGTP preparatory sessions.
    • MoA also responds to interviews on trade policy formulation/reviews by consultants.
    • MoA is also a member of the SADC-NWGN and attends all the necessary sessions on trade policy formulation/review it organises.
  • 4. Role of the MoA in Trade Policy Making Process
    • MoA and Trade Policy Development
    • COMESA recent consultation was on Agricultural Trade in Relation to Tariff and Non-tariff Barriers in COMESA.
    • A major weakness of the approach has been slow & inadequate feedback from secretariats.
    • As for on going EPA discussions, MoA chairs the Agriculture Cluster that reviews SPS measures.
    • Thus MoA directs country’s position on SPS measures.
    • It also participates in issues that involve food standards handled by the Malawi Bureau of Standards
  • 4. Role of the MoA in Trade Policy Making Process
    • MoA and Trade Policy Development
    • MoA also a member of EPA Market Access & Development Clusters.
    • Under Market Access MoA has been involved in revising a list of sensitive products for Malawi.
    • ESA sensitive products will be exempted from reciprocal liberalisation to boost their revenue capacities, local agro-industrial development and food security.
  • 4. Role of the MoA in Trade Policy Making Process
    • MoA and Trade Policy Development
    • MoA recent trade policy review consultations in which the MoA participated for WTO was in 2007.
    • This was on measures of tariff, customs and legislation.
    • And how these affect the productivity of the agriculture sector.
    • MoA not served with a copy of report for a comprehensive analysis and provision of feedback
    • MoA participation varies from one senior rank to another.
    • Both preparatory sessions and consultations are either handled by Assistant Directors, Directors or PS.
    • At times these are handled by the minister of agriculture
  • 4. Role of the MoA in Trade Policy Making Process
    • MoA and Trade Policy Development
    • At regional level, Minister of Agriculture is a member of the Council of Ministers of COMESA and SADC.
    • These act upon recommendations from the Trade Technical Committees.
    • Council of Ministers make recommendations to the Summit of Heads of States.
    • Summit discusses, reviews and approves policy proposals for implementation.
    • Drawback is COMESA & SADC do not have regional parliament to legislate and register regional trade measures.
  • 4. Role of the MoA in Trade Policy Making Process
    • MoA and Trade Policy Development
    • MoA participates in implementation, monitoring and evaluation of the trade policies through the IMCs and NWGTP.
    • IMCs and NWGTP organises regular review sessions.
    • Usually such meetings mobilize progress reports from various sectors for consolidation.
    • IMC consolidates for SADC or COMESA Annual Summits or Special Progress Review Meeting.
    • MoA contributes a chapter to such reports.
  • 4. Role of the MoA in Trade Policy Making Process
    • MoA and Trade Policy Development
    • MoA occasionally makes some self initiatives in developing comments and views on trade policy issues.
    • MoA made comments on assigning roles of institutions in the NWGTP.
    • MoA submitted comments to the MoIT on the list of sensitive products.
    • MoA compiled comments on the development of COMESA Regional SPS Laboratories.
  • 4. Role of the MoA in Trade Policy Making Process
    • Benefits of a Stakeholder-Wide Consultative Trade Policy Making Process
    • Sustains trade liberalisation as frequent interactions enhance understanding of the process.
    • Engenders sense of ownership of the policies and programmes.
    • Legitimates the policies resulting from process.
    • Promotes accountability
  • 4. Role of the MoA in Trade Policy Making Process
    • Major Issues of Participatory Processes in the Trade Policy Making
    • Pressure on technical, time and monetary resources.
    • Complex and difficult to manage & operate.
    • Little opportunity to build up a relationship of trust.
    • Donor driven technical assistances tend to concentrate on donor priorities.
    • Inadequate coordination on the part of government institutions.
  • 5. Recommendations
    • MoEPD should take a leading role by working hand in hand with the sector ministries.
    • Technical assistance should be designed to transfer skills and knowledge to government officials and not under capacitating them.
    • Strengthen coordination amongst government institutions by putting in place an independent government institution to coordinate.
    • Increase capacity through increased human resources, utilization of available human resources and adequate financial resources