Maravi

Zambia’s emphasis is building productive capacities – Mutati

COMMENT - That is of course an interesting interpretation, but it does not justify not taxing the mines, and the resulting devaluation of the Kwacha, and non-diversification of the economy. Because the mines are not taxed, the money simply isn't there for basic services or meaningful diversification. And the foreign investment that is attracted does not have a sunset clause attached to it - as far as the MMD is concerned, they can own the Zambian economy forever.

Zambia’s emphasis is building productive capacities – Mutati
By Chiwoyu Sinyangwe and Mutale Kapekele
Fri 11 June 2010, 08:00 CAT

COMMERCE minister Felix Mutati has said Zambia’s focus in the current negotiations under the Doha Development Agenda has not been limited to mere market opening through tariff reduction by other trading partners.

By virtue of being commerce minister of Zambia which is the coordinating country for Least Developed Countries (LDCS), Mutati will until December 2010, chair the negotiating group for countries which exhibit lowest indicators of socioeconomic development and constitute 12 per cent of the global population, but only account for one per cent in global export trade for goods and services.

Mutati said a part from requesting for mere market opening through tariff reduction by other trading partners, Zambia would also ensure that the request be extended to simplification of rules of origin, elimination of non tariff barriers and technical assistance and capacity building support to address supply constraints.

“As coordinator, we have taken keen interest in ensuring that initiatives aimed at expanding markets are supported by adequate technical assistance and capacity building support to ensure that countries fully take advantage of emerging market access opportunities,” Mutati said.

“It is for this reason that that we, as Zambia, have placed emphasis on building productive capacities through multifacility economic zones, farming blocks and the promotion of small and medium enterprise development…It is for this reason that I wish to call upon all those in productive sectors to take full advantage of these emerging opportunities.”

Mutati said Zambia was currently pushing for an early implementation of this decision to ensure that the Doha Round brings meaningful and tangible results to Zambia.

“The decision taken during the Hong Kong ministerial meeting in December 2005 to grant duty free and quota free market access and to simplify rules of origin was a result of the coordinated efforts by LDC group led by Zambia,” Mutati said. “We will also continue to push for the elimination of trade distorting domestic support on cotton so that our cotton farmers get value of their efforts.”

Mutati said WTO remained an important cornerstone for global governance and development.

And the World Trade Organisation (WTO) has recorded a 25 per cent increase in the value of the global trade in the first quarter of 2010.

According to WTO trade statistics released on Wednesday, in comparison to the same period last year, global imports and exports rose by 24 and 27 per cent respectively.

“The first quarter of 2010 has seen trade value rise by about 25 percent,” the WTO stated. “The value of world merchandise trade was around 25 per cent higher in the first three months of 2010 than in the same period of 2009. Global exports rose by 27 percent, while imports rose slightly less, at 24 per cent. These are year-on-year quarterly comparisons.”

WTO stated that monthly statistics for 70 economies which represented 90 per cent of world trade show that merchandise trade declined in January and February 2010, then rose sharply in March.

The trade organisation attributed the rise in global merchandise to Asia’s demand and commodity prices, exports of Africa, the Middle East and the Commonwealth of independent states which were more than 50 per cent higher than in the corresponding period of 2009.

And Mutati has maintained that Zambia will concentrate on improving trade with its neighbours before servicing overseas export markets.

He said Zambia was working towards strengthening its trade with the Democratic Republic of Congo and other neighboring countries.

Mutati said, in an interview, that countries bordering Zambia had less prohibitive trade laws and were ideal export markets for the countries.

Labels: DEVELOPMENT, FELIX MUTATI, NEOLIBERALISM

posted by MrK @ 4:50 PM