UN ECONOMIC REPORT ON AFRICA: FREE TRADE ALONE IS NOT ENOUGH
In its annual report released on 29 September, the UN Economic Commission for Africa (ECA) pointed out that trade liberalisation by itself will not lead to economic growth and poverty alleviation in African countries, unless it is complemented by policies aimed at simultaneously boosting Africa’s competitiveness and improving capacity to produce manufactured goods. Mauritius, Namibia, South Africa and Tunisia are cited as Africa’s most competitive nations. On the continent’s overall economic performance, the report credits the growth in real GDP from 3.2 percent in 2002 to 3.8 percent in 2003 to Africa’s progress in a number of critical areas such as good macroeconomic fundamentals and stabilised fiscal deficits and inflation. The report found that although foreign direct investment (FDI) — which increased from $US11 billion in 2002 to $US14 billion in 2003 — remained mostly concentrated in natural resources, investment in service industries is also increasing. According to the report, the challenge lies in translating these achievements into faster growth: In 2003, only five countries — Angola, Burkina Faso, Chad, Equatorial Guinea and Mozambique - - achieved the 7 percent growth necessary to reach the Millennium Development Goal of halving poverty by 2015.
The report further analyses the near-collapse of the Doha talks, and argues for a comprehensive approach to development that prioritises poverty alleviation.
The ECA report is available at: http://www.uneca.org
ICTSD reporting.
US PUSHES FOR MIDEAST FREE TRADE
In a 7 October speech to members of the newly formed US-Middle East Free Trade Agreement (MEFTA) Coalition, US Trade Representative Robert Zoellick said that the US could soon begin free trade talks with the United Arab Emirates and Oman as part of its plans for a regional free trade agreement in the Middle East by 2013. The US-MEFTA Coalition was launched by several major US corporations after US President George W. Bush set a goal last year of creating a Middle East Free Trade Agreement as part of broader efforts to promote political and economic reforms in the region. The United States already has free trade pacts with Israel, Jordan, Morocco and Bahrain. Zoellick told the groups that a MEFTA-US partnership could help fight terrorism and ease anger simmering over US foreign policy in the region. "With the hand of US economic partnership, the United States will embrace and encourage reformers across the region," Zoellick said. "The MEFTA is a strategy for engagement that will help nations build free, dynamic economies." The US has also identified Qatar and Kuwait as candidates for free trade pacts. Agreements with larger Saudi Arabia and Egypt are more remote prospects that depend on Saudi Arabia’s WTO accession negotiations with the US and on the progress of Egypt’s economic reforms. Zoellick also expressed hope for a peace agreement that would permit US free trade with a Palestinian state some day, saying that potential free trade partners in the Arab world must end their boycott on trade with Israel.
"U.S. pushing forward on Mideast free trade-Zoellick," REUTERS, 7 October 2004; "U.S. Business Pushes for Mideast Trade," IPS, 7 October 2004.