The gulf between African countries and the United States in
the WTO negotiations is quite substantial in the area of services
trade. The US is keen to see a stable and legally predictable
regulatory framework for investments and cross-border supply
develop in Africa, which would allow US businesses the comfort
level required to infuse capital and do business in the region.
While African countries recognize the value of policy and regulatory
reform in services trade, in many instances their regulations
and regulatory institutions are at a nascent stage. On the other
hand, African countries in the WTO are also very keen to reap
the huge potential benefits which could arise from facilitated
access to the US labour market for African services suppliers.
Often, the
conditions which would allow African and US trade negotiators
to give a more positive consideration to each other's needs
are not easily understood by their counterparts. The negotiating
dynamics in Geneva, where African negotiators often have to
devote their time and resources to other international organizations
and other negotiating issues at the WTO, coupled with the understandable
attention needed to be given by US negotiators to other equally
important major trading partners during the cluster of services
negotiations and meetings at the WTO, also do not contribute
to an environment conducive to fostering such better understanding.
Furthermore, the primary area of interest for African countries
in the services trade negotiation, the so-called mode 4 or facilitated
access for temporary workers for the purposes of supplying services,
appears to have been firmly recouped from the US trade negotiators'
scope of authority by the US Congress, such that African trade
negotiators are often left confused as to how to move forward
constructively on this trade interest.
As a contribution
to bridging the gap in information and understanding between
African countries and the US, the International Centre for Trade
and Sustainable Development (ICTSD) and the German Marshall
Fund (GMF) are organizing a visit to Washington DC by a select
group of trade negotiators from African Members of the WTO.
This will afford these African representatives the opportunity
to meet and dialogue with US policymakers, legislators, businesses
and negotiators in a focused, open manner, devoid of the distractions
of WTO negotiations. Through this initiative, the critical role
of services trade in contributing to a dynamic and stable trading
relationship between Africa and the US will be emphasized. The
dialogue shall highlight that, among others, (i) capacity building
and US technical assistance could create an enabling environment
to facilitate a mutually beneficial outcome from the Doha Round;
(ii) African services suppliers' interest in doing business
in the US, particularly in specific sectors such as health care
and hospitality; and (iii) a balanced approach could create
a win-win situation that contributes to continued economic growth
in the US and the sustainable development objectives of Africa.