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Why Chinese trade is good news for Africa

David Pilling’s article in today’s FT offers an insightful analysis on the benefits for African of Chinese investment. He reveals how China treats Africa as any other business partner- where there is mutual benefit they trade, where there isn’t they don’t.

How refreshing it is that African countries are finally able trade freely, without paternalistic stipulations over how and on what they spend their revenues. The prospect of an African future based upon trade, not aid, is most appealing- not least to Africans themselves.

Developing countries must be wary of green protectionism

An article in China View today demonstrates the very real danger of rising green protectionism. Proposals to introduce carbon taxes and impose tariffs upon imports from developing countries, which do not cap their carbon emissions, will hurt developing countries trying to trade their way out of poverty.

African doesn't need to wait on the Doha Round to promote trade and growth

Alec van Gelder and Timothy Cox of International Policy Network have a letter in the Daily Telegraph that argues for trade reform outside of the World Trade Organisation, given the ongoing difficulties of negotiating any conclusion to the Doha Round.  Africans--or indeed anyone else--don't need to wait for agreement on Doha to move forward on trade.  Here's the letter.

Don't trade away Africa's future at Copenhagen - oh, and sign the anti-green protectionism petition to do something about it

Peter Draper and Ivan Mbirimi remind us in this excellent column in the Business Day (South Africa) that summitteers in Copenhagen must not get carried away with their good intentions.  There is a very real risk that sub-Saharan Africa's potentially rich future could be traded away in any agreement that restricts trade in energy intensive goods, which these experts predict could affect virtually everything that Africans produce and trade with the rest of the world.  Never mind the impact of weather related events in 2050; shutting down this trade under the auspices of protecting the environment will lead to devastating consequences RIGHT NOW.

Sign the anti-green protectionism petition and voice your disapproval at the prospect of a Copenhagen Agreement that restricts trade and prevents Africans - or anyone else - from trading their way out of poverty and improving the environment.

Latest on the EU shoe tax- And it's not good news!

It seems that we may have been overly optimistic in celebrating the likelihood of an EU shoe tax on imports from China and Vietnam being repealed. The confusing on-again, off-again debate about tariffs on shoes from East Asia now looks set for another extension after news reports indicated that Germany, Austria and Malta intend to abstain from the legally binding vote on the issue scheduled for 22 December.  Due to bizarre and arcane EU rules these abstentions effectively count as a vote in favour of the Commission’s proposal to extend the absurd tariffs. These three abstentions lend enough support to other EU Members who want to pass the proposal to extend the EU Shoe Tax for another 15 months, as of January.

WTO "Ministerial A Pointless Excercise"

Upon the closure of this year's World Trade Organization (WTO) Ministerial in Geneva, Alec van Gelder, trade policy analyst at International Policy Network and coordinator of the Freedom to Trade Coalition, offered the following comment:

"Over the past eight years, the World Trade Organization has failed to cobble together agreement on the Doha Round and today Member States come away empty handed from the least ambitious Ministerial in WTO history. This comes hot on the heels of yet another G20 meeting where Members committed themselves not to introduce protectionist policies that would aggravate the global economic downturn, in spite of the fact that similar pledges have been made—and broken—in the past year.   If grandiose international meetings fail to promote the right solutions for economic recovery and global growth, and break their promises whenever they come to agreement, what then is the point of such meetings at all?”

Why pay more?

Unfortunately it’s not all good news in East Africa. Apparently, cement prices in East Africa “need” to be kept artificially high to “protect” cement manufacturers in the East African Community from cheaper imports, or so say the East African Business Council (EABC). They are appealing for the introduction of an import tariff of 35 per cent or $50 per tonne- whichever is higher. The perversity of this is obvious; East Africa is experiencing an acute housing shortage, of over a million homes in Uganda alone, and suffering from chronic underinvestment in infrastructure- both problems that cheaper cement would help to mitigate.

Made in China: Made with the World

Not often the case that we can say this, but kudos to the mountpiece of the Chinese Communist Party, the China Daily!  We should quite naturally be sceptical when any government goes on a charm offensive, but China's "Made in China: Made with the World" PR campaign is spot on and comes at just the right time.  It also serves as a useful reminder that trade policy need not wait for the World Trade Organisation, currently convening its first summit since the failed Hong Summit in 2005, to get its act together and adapt to the modern reality of global commerce. 

Trade is often characterised as a global competition, but in reality that global competition is actually one set of producers that cooperate with other producers in dozens of other countries.  These supply chains compete with other supply chains, and the net result is increased wealth, cheaper products and a plethora of new forms of employment for billions of people across the world.

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