NATIONAL INCEPTION MEETING ON NATIONAL INCEPTION MEETING ON “FOSTERING EQUITY ACCOUNTABILITY “FOSTERING EQUITY ACCOUNTABILITY

IN THE TRADING SYSTEM (FEATS) IN THE TRADING SYSTEM (FEATS) PROJECT, 20PROJECT, 20THTH OCTOBER, 2008, OCTOBER, 2008,

CRESTER GOLF VIEW, LUSAKA, ZAMBIACRESTER GOLF VIEW, LUSAKA, ZAMBIAROLE OF THE MINISTRY OF ROLE OF THE MINISTRY OF

COMMERCE, TRADE AND INDUSTRY COMMERCE, TRADE AND INDUSTRY IN THE TRADE POLICY MAKING IN THE TRADE POLICY MAKING

PROCESSPROCESSEvaluation of the extent to which the Evaluation of the extent to which the

ministry of Agriculture and Co-operatives ministry of Agriculture and Co-operatives is consulted in the trade policy making is consulted in the trade policy making

process in Zambia process in Zambia

SOME DEFINITIONS..........SOME DEFINITIONS..........

• SOME DEFINITIONS……• POLICY…A STATEMENT OF GOALS, OBJECTIVES

AND COURSES OF ACTION OUTLINED BY THE GOVERNMENT TO PROVIDE GUIDANCE FOR ITS ACTIVITIES.

• POLICY PROCESS…COLLECTIVE PROCEDURES/MECHANISMS FOR EFFECTIVE POLICY FORMULATION, ADOPTION, IMPLEMENTATION, MONITORING AND EVALUATION AND THE CONSULATION THAT TAKES PLACE AT ALL STAGES

MCTI MISSION STATEMENTMCTI MISSION STATEMENT

• why the Ministry exists…• TO FACILITATE AND PROMOTE THE GROWTH,

DEVELOPMENT AND COMPETITIVENESS OF COMMERCIAL, TRADE AND INDUSTRIAL SECTORS IN ORDER TO ENHANCE SOCIO-ECONOMIC DEVELOPMENT

MCTI GOALMCTI GOAL

• To achieve what…….. TO DEVELOP A SUSTAINABLE AND GLOBALLY

COMPETITIVE COMMERCIAL, TRADE AND INDUSTRIAL BASE IN ORDER TO CONTRIBUTE TO SOCIAL ECONOMIC DEVELOPMENT.

ORGANISATION…DEPARTMENTSORGANISATION…DEPARTMENTS

• HUMAN RESOURCE AND ADMINISTRATION

• PLANNING AND INFORMATION• INDUSTRY

• FOREIGN TRADE

• DOMESTIC TRADE

MCTI CUSTODIAN OF TRADE POLICYMCTI CUSTODIAN OF TRADE POLICY

• Regional and international trade organisations recognise Zambia’s sovereignty that MCTI is Custodian of Trade Policy in Zambia ……………

• Government Gazette Notice No. 547 Vol. XL, No. 58 of 21st September, 2004 on Statutory Functions, Portfolios and Composition of Government signed by Dr. Joshua L Kanganja, Secretary to the Cabinet allocated the following functions to MCTI:

Functions of MCTI….Functions of MCTI….

1. Trade Licensing policy2. Commercial, Industrial and Trade Policy3. Foreign Trade Policy and Agreements4. Competition and Trading5. Investment promotion policy6. Privatisation policy7. Companies and Business Names

OTHER FUNCTIONS OF MCTI..OTHER FUNCTIONS OF MCTI..

• Industrial Research

• Patents, Trade Marks and Designs

• Copyrights• Weights and Measures

• Medium and Small Scale Enterprise Development

TO WHAT EXTENT HAS THE MCTI BEEN CONSULTED TO WHAT EXTENT HAS THE MCTI BEEN CONSULTED DURING THE TRADE POLICY MAKING PROCESS?DURING THE TRADE POLICY MAKING PROCESS?

• IN RECOGNITION OF ITS ROLE IN THE GOVERNMENT OF ZAMBIA MCTI HAS BEEN CONSULTED IN POLICY MAKING AND REVIEW

• The final positions Zambia takes to negotiations must have the blessing of Cabinet.

• MCTI Minister keeps Cabinet and Presidency informed of developments in negotiations.

• DOMESTIC LEVEL: MCTI is the policy initiator of domestic and international (in close consultation with MFA, the Presidency and Cabinet) trade policy.

• REGIONAL & MULTILATERAL LEVELS: MCTI adivises the Zambian Government on Membership based on perceived benefits.

• Zambia is a key stakeholder in the following regional and international trade organisations, treaties and arrangements: WTO, COMESA, SADC, ACP/EU-EPAs, UNCTAD, NEPAD, AGOA, EBAs, ITC and BILATERALS.

• Each of the organisations, treaties and arrangements has a philosophy on how trade should be conducted regionally and globally.

• Zambia’s Membership to regional and multilateral trade organisations and treaties is voluntary upon recognition of likely benefits to the social and economic benefits for the country.

• MCTI:

– Makes an input in the regional and international trade policies and implementation mechanisms

– Provides factual information in the policy documents review reports

– Is allowed to present and market/defend Zambia’s position on issues.

– Is invited to participate at meetings/conferences

– Hosts missions to Zambia to consult on trade and related issues.

– Is given an opportunity to consult internally through the most effective mechanisms on given issue.

– Is allowed to invite other stakeholders to submit sector reports directly to regional and international missions.

HAS MCTI BEEN CONSULTED BEFORE IN THE HAS MCTI BEEN CONSULTED BEFORE IN THE PROCESS OF MAKING ANY RELEVANT CHANGE IN PROCESS OF MAKING ANY RELEVANT CHANGE IN

THE EXISTING COUNTRY’S TRADE POLICY?THE EXISTING COUNTRY’S TRADE POLICY?

• POINTS TO NOTE:• Ratification and Domestication of Trade

Treaties are National Policy issues in Zambia.• National Policy-making in Zambia is a preserve

of the Executive Wing of Government through Cabinet Decision OR Pronouncement by the President.

• Presidential pronouncements or decrees may be made with or without consulting the Minister of MCTI.

Consultation on trade policy Consultation on trade policy changes.........changes.........

• IN VIEW OF THE ABOVE:

• Zambia has been consulted on regional and international trade agendas, e.g. on content and implementation of COMESA and SADC trade protocols, WTO Trade Policy Reviews, ACP/EU Economic Partnership Agreements.

Consultation on trade policy Consultation on trade policy changes.........domestic levelchanges.........domestic level

• Changes to Trade policy is a responsibility of the MCTI. In recent times trade policy changes include:– Amendment of the Control of Goods Act to

provide for Safeguard measures against imports which threaten or cause injury to domestic industry.

• Scrap Metal Act to regulate crap metal trade.

• Amendment to the Trades Licensing Act to:

– revise fees and regulate wholesale and retail trade; and

– Increase trading hours

• Enactment of Competition and Fair Trading Act to regulate anti-competitive business practices.

ACTUAL EXPERIENCE OF THE MINISTRY ACTUAL EXPERIENCE OF THE MINISTRY IN TRADE POLICY MAKING PROCESSIN TRADE POLICY MAKING PROCESS

• REGIONAL LEVEL.– SADC Rules of Origin negotiations, relations

with SACU, Trade in Services liberalisation among member states

– COMESA list of sentive products for exclusion from the Common External Tariff.

ACTUAL EXPERIENCE…..ACTUAL EXPERIENCE…..

–List of products to be traded under the COMESA Simplified Trade Regime

–Ratification of the Protocol on the COMESA Fund (Aid for Trade programme).

Actual experience......Actual experience......

• BILATERAL TRADE

– Joint Permanent Commissions with various countries to discuss trade with other countries. Active ones include Tanzania, Zimbabwe and Namibia.

Actual experience......Actual experience......

• MULTILATERAL TRADE

WORLD TRADE ORGANISATION

– MCTI is consulted extensively on Trade policy reviews and new trade policies.

– Trade Review Policies carried out in 1996, 2002 and on-going 2008.

– Stakeholder paticipation high.

Actual experience......Actual experience......

• consulted on the factual content on Zambian Chapter

• Sector input encouraged.• Geneva-based officials and National Working

Group on Trade (NWGT) utilised.• NWGT membership include sector ministries,

statutory bodies, private sector (chair) and civil society.

Actual experience......Actual experience......

ACP/Economic Partnership Agreements• Zambia has participated fully in trade

negotiations between the 77 ACP countries and the European Union.

• Won confidence of Eastern and Southern African (ESA) Group who have sought her leadership in negotiating with the European Commission.

• Zambia’s position is a result of national consultations. Zambia’s position has been approved by Cabinet.

Domestic policyDomestic policy

• Domestic policy: 1994 Commercial, Industrial and Trade Policy which has since been revised into a working policy paper through a comprehensive stakeholder consultative process.

• Specific policies which have been formulated include:

Conclusion……Conclusion……

National Trade Policy is a preserve of the Government of the Republic of Zambia through the Minister of Commerce, Trade and Industry. No other authority can initiate and conclude trade policy change outside the Ministry of Commerce, Trade and Industry.

The Ministry of Agriculture, Food and Fisheries is a member of the NWGT. It regulates agricultural trade domestically and internationally.