Africa and the Global Trade System a Policy Paper

Mohamed O. Hagi Mohamoud

Abstract: This policy paper explains the global trade system reform. It proposes to burgeon international trade – a way in which the least developed countries of the world can attain their share from the global economic system. The paper examines why the global trade system worked very well with the advanced industrialised countries in the north, and the newly industrialised countries of the south, but not the least developed countries (LDCs) as the share of their global economy has declined dramatically since in the 1980s? The research draws attention to the unfair policies in the global trade system. It also explains the existing technological and industrial obstacles, which resulted the developing economies’ negative participation in the world trade, and the causes of trade imbalances that hinders LDCs, not to attain their portion from the global economy. Then the paper recommends:

WTO member states should come up with trade policies of mutual advantage.
LDCs to move from inward-oriented trade policies to outward-looking
To reform the unfair EPAs between EU and ACP countries.
LDCs to diversify their economies from primary commodities to industrial base.
To make Doha Round talks a success.
WTO member states to eliminate the unfair import-substitution policies of agriculture.
Africa should address supply-side constraints to its infrastructure and deepen its regional integration.