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1 REGIONAL EVALUATION OF AID FOR TRADE (Abuja, 27 and 28 January 2010) ===================== AN OVERVIEW OF THE IMPLEMENTATION OF THE REGIONAL TRADE STRATEGY IN THE UEMOA REGION Presented by Mr Christophe Joseph Marie DABIRE Commissioner, Department of Regional Market, Trade, Competition and Cooperation (DMRC) S U M M A R Y =================== I. Introduction : UEMOA efforts in the implementation of Aid for Trade (AFT) II. Regional programme implementation strategy within UEMOA: II-1: Strategy for demand-related issues II-2: Strategy for supply-related issues II-3: Strategy for programme implementation issues III- Conclusion 1

2 I- Introduction : UEMOA efforts in the implementation of Aid for Trade (AFT) ObjectivesoftheAFT: The implementation of Aid for Trade (AFT) should facilitate the attainment of the development objectives of LDCs and DCs To benefit from the programme, the UEMOA Commission has, since 2006, embarked on activities to formulate a community programme on aid for trade and is based on the principle of subsidiarity. I- Introduction : Historical evolution of activities undertaken within UEMOA for the implementation of Aid for Trade (AFT) (cont) ======================== Some important events: 16/11/2006 in Dakar: The Commission was mandated by the Council of UEMOA Trade Ministers to formulate an Aid for Trade (AFT) regional programme in accordance with the directives of the WTO Task Force on AFT; June 2007 in Dakar: The UEMOA Commission shared its experience and efforts on the implementation of AFT in WA with ECOWAS; 2

3 I- Introduction : Historical evolution of activities undertaken within UEMOA in the implementation of the Aid for Trade (Cont.) ======================== Some important events: 16/07/2007 in Accra: Meeting of EPA MMC called on UEMOA & ECOWAS Commissions to take necessary measures to ensure the effectiveness of AFT in the region; September 2007 in Cotonou: Validation Workshop on the UEMOA AFT programme and the strategy paper on implementation of the AFT programme; II- Regional strategy for programme implementation in the UEMOA region This strategy is in three parts: II-1: Strategy for demand-related issues It involves showing that trade is integrated in both national and regional development strategies: Integration of trade in regional strategies: The priority objectives of the UEMOA Treaty include the implementation of a common trade policy as an integral part of the regional integration process. 3

4 II-Regional strategy of programme implementation in the UEMOA region Integration of trade into the regional strategies (cont).. Since inception, UEMOA has integrated and used trade as the means and tool for the implementation of its economic development and social policy; The key elements of the UEMOA common trade policy are centred on the following: II- Regional strategy of programme implementation within the UEMOA (cont) Integration of Trade in regional strategies Introduction of a Community preferential trade regime and the completion of a free trade area; Creation of a Common External Tariff (CET); Completion of a customs union; Management of bilateral trade agreements at Union level, and harmonisation of positions on negotiations at the multilateral level; Harmonisation of UEMOA integration scheme with that of ECOWAS; Compliance with the principle of subsidiarity; 4

5 II- Regional strategy of programme implementation in the UEMOA Integration of Trade in regional strategies : Management of a common currency; Implementation of Community sectoral policies such as the Agricultural Policy of the Union (APU/PAU) and the Common Industrial Policy (CIP); Harmonisation of economic policies for improving the business environment. II-Regional strategy of programme implementation in the UEMOA Integrating Trade in national development strategies of UEMOA Member States: The subsidiarity principle enables Member States of the Union use their prerogative in implementing their trade development strategy, within established community rules and choices; Trade was integrated into national development strategies through the trade capacity building programmes, the most important of which are: Tradecom (Guinea Bissau) JITAP (Benin, Burkina Faso, Mali, Senegal), Integrated Framework (Benin, Côte d Ivoire, Mali, Niger, Senegal). 5

6 II- Regional strategy of programme implementation in the UEMOA Integration of Trade into the national development strategies of UEMOA Member States (cont): 1. Identification of national needs and priorities was done based on existing capacity building programmes (ex. use of the EDIC, for the integrated framework); The strengths and weaknesses of these programmes were identified, and the constraints facing UEMOA Member States were revealed. II- Regional strategy of programme implementation in the UEMOA region Expectations of UEMOA Member States within the context of AFT implementation: The priorities and requirements of AFT were defined based on the Regional Economic Programme, the reference point in the UEMOA integration process and in line with the existing trade capacity building programmes; The general objective of the UEMOA AFT is to assist MS to increase the exports of their goods and services within the international trade system; 6

7 II- Regional strategy of programme implementation in the UEMOA region (cont) Expectations of UEMOA Member States within the context of AFT implementation (cont): The specific objectives of the UEMOA AFT are as follows: 1: Ensure ownership and competence in trade policies and regulations by Member States and the UEMOA Commission; 2: Develop intra-regional and international trade of Member States; 3: Strengthen trade infrastructures in the sub-region; 4: Diversify and increase the production capacities of Member States; 5: Complete the necessary adjustments and take other trade related requirements into account. II- Regional strategy of programme implementation in UEMOA (cont) Expectations of UEMOA Member States within the context of AFT implementation : The actions retained are as follows: Promotion of external trade in the Union; Price subsidies on raw materials in the Union, including the introduction of grants, in particular on food products, and on all other basic products; Construction of infrastructural projects (roads, ports, airports and railway equipment, energy supply, communications) ; Sustainability of the UEMOA Quality Programme; Upgrading of production structures to ensure increased and improved supply capacity of enterprises, etc. 7

8 II- Regional strategy of programme implementation in the UEMOA Expectations of UEMOA Member States within the context of AFT implementation : Altogether, the projects and programmes retained are considered as trade related development priorities and therefore should: Promote the improvement of growth perspectives, Finalise the current trade reforms, Reduce poverty in the UEMOA region, Facilitate strengthening national and regional development strategies and the regional integration process. II- De Regional strategy of programme implementation in the UEMOA II-2: Strategy for supply-related issues The inadequacies of previous trade capacity development programmes are caused by: Cumbersome financing procedures, Poor resource mobilisation and absorption capacity Difficulties in the mobilisation of national financial compensation and sustainability of executed programmes; Ways and means of AFT effectiveness Availability of resources allocated to the AFT; Relaxation of procedures in the allocation and disbursement of funds; Cohesion of donors contribution; Ownership of the programme by the beneficiaries and contribution to the financing of some identified projects; 8

9 II- Regional strategy of programme implementation in the UEMOA (cont. & end) II-3: Programme implementation strategy: The implementation of the UEMOA AFT is based on, a priori, relevant existing national and regional mechanisms; Guidelines for the implementation of AFT: Organisation of a consultation framework at the national and regional levels; Take the Paris principles on Aid effectiveness into account (ownership of the programme by the beneficiaries, etc.); Need for an organised donors network; Creation of an institutional mechanism for coordination and monitoring/evaluation. III- Conclusion The effective implementation of the AFT will promote enhancement of the regional integration process; With regard to the harmonisation of the EPADP and the UEMOA AFT: The harmonisation of the two programmes will resolve the issue of rationalisation of regional programmes with the same objectives; The UEMOA AFT is the foundation on which the EPADP is built; The UEMOA Commission deemed it necessary to transfer into the EPADP national and regional projects and programmes in the implementation of the UEMOA aid for trade programme 9

10 THANK YOU FOR YOUR KIND ATTENTION