Opinion and Analysis
By ANZETSE WERE
In Summary
- Trans-Atlantic Trade and Investment Partnership rules erect barriers against African exports
The European Union and the United States are
negotiating the Trans-Atlantic Trade and Investment Partnership (TTIP)
which should create the largest free trade zone in the world, accounting
for a third of global commerce.
Of course the question is how will this affect Africa and
how can we benefit? Well, as it is currently structured, the rules of
origin section of the TTIP will heighten the barriers faced by African
countries exporting processed goods to the zone because at least 50 per
cent of the value addition in a product must be produced in a TTIP state
to benefit from tariff reductions.
Such clauses discourage Africa from industrialising
yet industrialisation is considered one of the most viable means of
pulling millions of Africans out of poverty. Basically it’s the same old
bias.
The TTIP also aims to harmonise product standards
to a very high level. This is a mixed bag for Kenya which has
significant horticultural exports into the TTIP zone.
High standards may be a barrier at first as it will
be more difficult for poor countries such as Kenya to comply with them;
this may lock out African exporters.
But eventually it will be of benefit for Africa to
produce internationally competitive goods. Why should Africa be allowed
to lag behind in the pursuit of excellence?
There are already calls for third party countries,
particularly developing economies and Africa, to contribute to the TTIP
and make recommendations that ensure they benefit.
But even such a position fails to realise a basic
truth: the TTIP is not about creating an equitable and fair world, it’s
about strengthening the Euro-American power.
So while the specifics of the agreement matter,
what the TTIP is truly saying is that the US and the EU are finally
admitting and recognising the erosion of their control and influence
over the global economic, political and social landscape.
The TTIP is an attempt to rebalance the scales and make Euro-America economically all-powerful again.
The TTIP is an indirect admission by both parties
that their influence and clout has been receding in what has
increasingly become a multipolar world with the emergence of competition
from China, Brazil, India and even Russia in economic and political
spheres.
It will be interesting to see how China responds to
this mega regional trade agreement and whether it leads to consent or
contest of the new norms and rules. Africa should keep an eye on this.
So, how will the TTIP affect the continent? Well,
we can only really begin to answer that question once we analyse the
specifics but there is already one message Africa should get loud and
clear: integrate economically.
The TTIP provides yet another compelling reason for
the economic integration of the continent. But, as the outgoing
president of the Africa Development Bank states, there are far too many
regional and sub-regional funding initiatives that they can never gain
critical mass and foster continental economic integration.
The TTIP should provide an even deeper impetus for
Kenya to push for intra-regional integration where the EAC integrates
with Comesa and SADC and Ecowas. Integration should become an even stronger mission for Africa. Only then
perhaps can Africa begin the process of agglomerating economic and
socio-political clout in a New World order.
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