Policy From the Ground Up: Reshaping Transatlantic Trade, Development, and Food Security Policies to...

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Economic Policy PaPEr SEriES 2011

Policy From thE Ground uP

rEShaPinG tranSatlantic tradE, dEvEloPmEnt

and Food SEcurity PoliciES to aFrica’S nEEdS

Katrin a. Kuhlmann

Kathryn rittErSPach



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Policy From the Ground Up:Reshaping ransatlantic rade, Development and

Food Security Policies to A rica’s Needs

Economic Policy Paper Series

June 2011

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Policy From the Ground Up 1

Introduction: An InternationalDemand-Driven Approach1

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The United States andEurope can make a

significant differenceas key trading partnersaid donors, and policy leaders.



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and new commercialrelationships, wouldproduce exponentialpayoffs.




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• Coordinate donor programs andstakeholder participation throughdevelopment corridor authorities andsecretariats , through which private andpublic sectors are beginning to coalesce.These mechanisms can be useful inensuring that donor programs to buildinfrastructure and value chains andotherwise contribute to development along the corridors are complementaryand not overlapping.

• Make better use of interagencydialogues and include business indiscussions. Use appropriate existing

mechanisms, including the U.S. TradeRepresentative’s Trade and Investment Framework Agreements (TIFAs) andanalogous European processes, to bringall relevant agencies to the table onboth sides. These dialogues should beexpanded to include business and loopedinto Feed the Future discussions, in orderto ensure that market-driven trade anddevelopment concerns are addressed at every step along the way.

•

Use the resources provided by WTOTrade Policy Reviews. The WTO TradePolicy Review Mechanism (TPRM) coversa broad range of trade disciplines foreach WTO member at regular intervals(developing countries are reviewedevery six years, with possible extensionsfor LDCs). The TPRM reports contain awealth of information on countries’ tariff and nontariff barriers to trade, and area solid, existing resource that could beused to inform many transatlantic trade-

and market-based assistance policies.

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Recommendations for a TransatlanticPolicy Approach that Can Respond toNeeds on the Ground

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On both sides of the Atlantic, businessneeds to be part of the equation fromthe beginning and atevery stage of policy

development




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private sector.

• Increase regional and improvenational budget support. Considerincreasing budget support to RECs,which have much less institutionalcapacity than national governments(and therefore a greater need to focus onstaffing and institutional capacity issues).At the national level, where institutionbuilding is important but perhaps not as pressing, ensure that budget support

is conditioned upon demonstrableresults on the ground, e.g. measured interms of successfully attracting businessinvestment or increasing smallholderincomes.

•

Promote regional integration. Providedevelopment assistance arms of boththe U.S. and European governments withthe legal mandate, budget, and tools tomake grants regionally to sub-SaharanAfrica. Encourage better dialogue amonghome offices, field offices, and regionalmissions, and support African efforts fora Tripartite Free Trade Agreement, whichlinks together three RECs and wouldresolve some concerns with overlappingREC membership.

• Build infrastructure where it isneeded most . Leading institutionssupporting the corridors movement, suchas DfID, should ensure that their effortssupport true development corridorsthat link smallholder farmers to market channels, and not just the development of trunk infrastructure lines. Prioritizeinfrastructure investments generally,and ensure that improved roads, storagefacilities, and processing plants are

accessible to businesses large and small.




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- b GSP AGOA, 5 - .

• Address over-quota tarifs , - - , q - k EU’ E B A .

• Exempt sub-Saharan A rica rom special sa e-guard tarifs on over-quota imports.



O f f i c e sWashing ton • Berlin • Paris • Brussels

Belgrade • Ankara • Bucharest • Warsaw

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Policy From the Ground Up: Reshaping Transatlantic Trade, Development, and Food Security Policies to...

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