Expand markets for SMEs, Amina Mohamed asks WTO members

Foreign Affairs CS Amina Mohamed addressing a plenary session at the ongoing WTO 11th Ministerial Conference in Buenos Aires, Argentina, December 11, 2017. /COURTESY
Foreign Affairs CS Amina Mohamed addressing a plenary session at the ongoing WTO 11th Ministerial Conference in Buenos Aires, Argentina, December 11, 2017. /COURTESY

Foreign Affairs CS Amina Mohamed has WTO member states to expand markets taking up products and services offered by micro, small and medium enterprises.

She said this should be so because the SMEs are a source of employment, particularly to the youth, who constitute nearly 70 per cent of the global population.

The bulk of this proportion, she said, is residing in Africa but are yet to leverage the enormous opportunities presented by global value chains that would expose them to a large customer base.

"The desire in Africa is to reap maximum benefits from the inclusion of SMEs into the global value chains," the CS said in her speech at the WTO Conference in Buenos Aires, Argentina on Thursday.

She said the future for Africa on SMEs is very promising with the Continental Free Trade Area (CFTA), which once concluded, will offer an important platform for the enterprises to competitively engage in production and gain valuable market access.

On trade facilitation, Amina said commendable progress was made during the 9th Ministerial Conference in Bali where the Trade Facilitation Agreement (TFA), was adopted.

"The objective of the TFA is to improve the efficiency and effectiveness of agencies that oversee trade, especially in developing countries, by reducing bureaucratic red tape at the borders."

The focus is also on simplifying customs procedures and improving enforcement capabilities through the application of technological solutions and institutional reforms.

"The TFA could reduce worldwide trade costs by between 12.5% and 17.5%," the Foreign Affairs CS added.

On agriculture, Amina said it remains critical in view of the significance of the sector to the livelihoods of millions of people adding that the 10th Ministerial Conference in Nairobi, resolved to eliminate export subsidies.

"For instance, Africa imports over $35 billion worth of food, yet the continent constitutes over 60% of the global unutilised arable land. Continued negotiations will provide a level playing field in the international market for the benefit of exporters by improving the productive capacities to produce internationally competitive goods," she said.

The CS called for collective commitment to create an environment where important trade actors, including micro, small and medium enterprises, manufacturers and exporters can jointly engage to benefit from the gains of global trade.

She called for fostering of policies designed to address problems associated with financial services, certification, access to technology, procurement, and other supply-side constraints, to support women in trade.

"Countries must also deepen their collaboration and cooperation so that trade barriers are minimised," Amina told the delegates.

The inaugural Business Forum brought together world leaders, policy makers, the business community, academia and civil society.

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