role & influence of interest groups in trade policy making
TRANSCRIPT
Role & influence of interest groups in Trade Policy Making
Presentation outline
Stakeholders in trade policy making Representation of main stakeholders in
formal trade policy making Means of influence Degree of influence Stakeholders not yet represented Conclusion
What is trade?
Buying and selling of goods and services Interaction between producers and
consumers Trade enablers; transport system, storage
facilities, information, regulations, institutions, Therefore trade policy should aim at
addressing the realization of trade enablers
Who is stakeholder?
Those affected and affecting an event/ occurrence, in this case trade
Thus trade stakeholders are broadly producers, consumers, institutions
Key stakeholders in trade policy making
• MIPA- attract, promote, encourage, support and facilitate local & foreign investment
• MEPC- export development market, market development, export facilitation, trade information
• MBS- write standards for locally manufactured goods and administer set standards in commerce & industry
Key stakeholders in trade policy making (cont’d)
MIRTDC- provides leadership in research & development
DEMATT- provide business and technical advisory and marketing services to small & medium enterprises. In 1995 it began assisting Finance assistance to small scale businesses
MNDTPF- organize and coordinate EPA negotiations
Key stakeholders in trade policy making (cont’d)
SEDOM- provide financial and technical assistance to MSMEs
NASME- advocacy association for MSMEs on trading and general
MCCCI- defend and promote the interests of business community, gather market information & technologies, organize annual trade fairs
Key stakeholders in trade policy making (cont’d)
Copyright society of Malawi- administers copyright legislation to protect intellectual property rights of creative work
NWGTP- formed in 2000 to private-public sector forum on trade negotiations, facilitates consultations and cooperation. Representatives are RBM, Min. of Trade, Agriculture, Justice, Foreign Affairs, UNIMA, MEPC, MIPA, MBS, MCCCI, T&G manu.
Representation in formal trade policy making
These include; Government- Min. of Trade and Industry,
Finance, Agriculture, Justice Corporate sector- MCCCI, legal practitiners Academia- Economics Department of
Chancellor college Civil society – MEJN, ActionAid
What have been some of the policies?
Periodic increase in interest rate and agricultural prices
Periodic devaluation of the Malawi Kwacha Liberalization of agricultural marketing
services (output in 1987 and input in 1990) Privatization of state owned enterprises Removal of fertilizer subsidy by 1991
What have been some of the policies?
Liberalization of some agricultural produce prices in 1988
Floatation in February 1994 Liberalization of entry into manufacturing in
1991 Bilateral trade agreements, RSA, Zim, Moz Multilateral trade agreements, COMESA,
SADC, WTO, EU
Means of influencing trade policy
Lobbying for Tax policy that promote trade Supporting infrastructure, i.e. water, energy,
international transport corridors, Regulation that favours investment Protection of marginalized and small
producers, e.g listing sensitive products in EPAs
Degree of influence
More action on international policies like EPAs, WTO
Less action on domestic challenges, counterfeit products, anti competitive behaviours
Less participation in regional policy making like SADC, COMESA
Degree of influence (cont’d)
Hasty preparations for negotiations e.g. EPAs
Capacity constraints to fully benefit from trade policy e.g. Lome convention, AGOA etc
CSOs ( Oxfam, MEJN, ActionAid) have been influential in the EPA current position for government
Degree of influence (cont’d)
NWGTP- privatization CAMA has worked on consumer protection MCCCI has been influential in ensuring;
reduced government intervention, tax policy, exchange rate management etc.
CISANET on farm subsidy reversion
Why have they been influential?
Similar understanding of implications after differences for long time betwn government and CSOs on EPAs
MCCCI- represents the corporate sector that is engine for economic growth and therefore its interest is response to government stimulus
NWGTP- interests aligned in government development policy
Why have they been influential?
CISANET- pushed through opposition parliamentarians who currently are in majority in parliament
Stakeholders not yet represented
Domestic trade dominated by informal sector Thus need to include Malawi Union for the
Informal Sector (MUFIS), Indigenous Business Association, Parliament, Center for Social Concern, CAMA, Farmers Union, PIAM, CNFA
Conclusion
Stakeholders in trade policy are producer oriented
Balance producer & consumer interests to stimulate competition for growth; CAMA, CFTC
Sector specific associations like in citrus fruits, cotton, dairy, poultry, artifacts need to be strengthened.
Merci beaucoup! Thank You!
Milward Tobias
The African Institute for Development Research (AIDR)
P.O. Box 30207
Lilongwe 3
+265 8 375 967