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Promoting South-South Civil Society Cooperation

A bi–monthly e-newsletter of the CUTS Africa Resource Centre (CUTS-ARC), published with the objective to promote South-South Civil Society Co-operation and provide information about the latest happenings in the African region on various trade issues.

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Vol. 1 No. 2 - June 2001
Vol. 1 No. 1- April 2001

Editor’s note
Inauguration of the CUTS-ARC Lusaka
The Objectives of CUTS-ARC
News Brief
Event: WTO Workshop on Competition Policy in Cape Town
Announcement: Scholarships for consumer leaders in Africa

Editor's Note
In the present era of globalisation the role of the civil society in economic governance has assumed critical significance in view of the greater role that the multilateral institutions such as the World Bank, the WTO and IMF among others are playing in influencing the policy environment of the developing countries. Civil society organisations today have also become great contributors to the articulation of opinions of common people and in shaping the agenda at various fora. However, there are very few NGOs from the South which have been able to voice opinion consistently and shape the agenda within and across borders. 

CUTS is one of those very few NGOs trying to promote South-South civil society cooperation as well as North-South understanding. CUTS took a major leap forward in February by opening an office in Africa that will act as a bridge between South Asia and sub-Saharan Africa, the two regions that house two-third of the world’s poorest people. 

Currently, the nation states are finding it difficult to tackle ever larger and more powerful transnational corporations. The political forces of nationalism are losing out against the economic forces of globalisation. However, the recent volte-face by the multinational pharmaceuticals companies on the AIDS drugs issue in South Africa has brought new hopes. It has shown that an active, alert and united civil society can still protect and promote the interests of the poor and the vulnerable. 
 

Inauguration of the ARC Lusaka
The inauguration of the CUTS Africa Resource Centre (ARC) took place on 21st February, 2001 in Lusaka’s Intercontinental Hotel. The event marked the establishment of CUTS regional office in Africa. The Centre, apart from its involvement in matters of trade and development will also be the centre for coordination of the African component of the 7-Up project which include Kenya, South Africa, Zambia and Tanzania from this region.

Inaugurating the centre, the Acting Minister of Commerce and Trade, Mr. William Harrington stated that CUTS would among many other responsibilities, help promote capacity building of non-governmental organisations in Africa. He also mentioned that the competition legislation should provide means of promoting fair competition and thereby protecting consumer rights.

On the other hand the Indian High Commissioner to Zambia, Mr. Ashok Attri expressed concern that the competition policy in international trade negotiations could lead to excessive market access into developing countrie's economies, which could have adverse social economic consequences. He stressed the need for intellectual debate on the issue and an evaluation, which could lead to the creation of effective, transparent and autonomous regulatory machinations involving all stakeholders. He stressed the point that good competition policy is synonymous with effective consumer protection policy, as it protects consumers from marketplace abuses. The high commissioner also emphasised the growing importance of competition policy in international trade as a reflection of determined market economies. He related this to the basic objective of competition in international regional or domestic trade as being to improve market access for goods, finances and investment through open conditions of competition and protection of consumers through transparency in competition.

The Secretary General of CUTS, Mr Pradeep S. Mehta expressed happiness at the opening of the ARC in that it was a demonstration of the South-to-South cooperation, which should be encouraged. He emphasised the need for the South to learn from each other’s experiences. 
 

The Objectives of CUTS-ARC
The immediate need of opening the office at Lusaka was to facilitate implementation of the 7-Up Project, a Study of Competition Regimes in Select Developing Countries of the Commonwealth. However, the long-term objectives as well as the scope of the Resource Centre are much broader. 

The Lusaka office is intended to be a permanent bridge between Asian and African civil society groups. The Centre will focus on consumer, trade, investment and competition issues. The work in these areas will involve:

• Strengthening capacity of policy makers for policy-making and implementation in the region.
• Sharing resources and information across and beyond the region.
• Global networking of civil society and governments of the South.
• Building consensus on the above mentioned issues for developing countries at multilateral fora.
• Helping to harmonise policies across countries working towards a Free Trade Area.
• Co-ordinating technical assistance from donor agencies.

NEWS BRIEF

1. Egypt Joins S. Africa in Call for New Round
According to a confidential position paper entitled “An Egyptian-South African Approach to New Multilateral Trade Negotiations Under the WTO,” Egypt has joined South Africa in supporting the principle of a ‘single undertaking’ towards negotiations on all issues. Egypt’s new stance, which some trade analysts have characterised as a “180-degree turnaround”, signals a break with other WTO Members such as India, Pakistan and Malaysia, who oppose trade negotiations that would include a range of issues. Egypt now joins South Africa in calling for a “broad and balanced” new round of trade negotiations that would include issues such as trade and investment, industrial tariffs, transparency in government procurement, trade facilitation and electronic commerce. They also stated that they opposed discussions of labour and environmental issues at this point since they undermine progress on all issues.

In a related development, a meeting of 29 trade ministers from developing countries that was scheduled to be held in Cairo on April 12, 2001, which was to pave the way for the Doha Ministerial Conference, has been postponed. A source at the Egyptian Government said a new date would be set after the ministers have consulted each other to set up the agenda.
(Washington Trade Daily, 05.04.2001) 

2. SA Victory in Aids Drugs Case
The 39 pharmaceutical companies contesting a South African law that could provide cheaper versions of branded Aids drugs have unconditionally dropped the case. During a hearing that lasted less than a minute, the companies also said that they would meet the South African Government’s legal costs. Aids activists cheered when the announcement was made, in a case that was seen as a landmark battle in the effort to secure medication for Africa’s 26mn HIV carriers.

The drug companies had taken the government to court in an attempt to block legislation which gives the government powers to import or manufacture cheap versions of brand-name drugs, which they have argued is desperately needed to tackle the country’s Aids crisis. The Health Minister Manto Tshabalala-Msimang said the government had not agreed to any deals regarding the legislation, which as yet has never been implemented. GlaxoSmithKline, one of the companies involved in the legal action, said South Africa had made a commitment to respect international law on drugs patents.

Kevin Watkins of Oxfam described it as a “comprehensive climbdown” by the drug companies. “We have lost three years in the fight against Aids, but it is great victory for the people of South Africa and for the global campaign to make drugs more affordable.”
(BBC News, 19.04.2001) 

3. Comesa Works on Competition Policy
The Common Market for East and Southern Africa (Comesa) is working on the formulation of a regional competition policy and payment system to suit the environment of the member states by the end of the year 2001. Comesa secretary general Erastus Mwencha said this when he opened a workshop on safeguards and remedial measures on effects of FTA at the Mulungushi Conference Centre on March 22, 2001.

Mr. Mwencha said that the need for a regional approach to competition is reinforced by globalisation of businesses and a large number of the member states have already adopted competition laws. “We have already embarked upon work on the formulation of a Comesa competition policy and hope that this work will be finished by the end of this year,” he said.

He said that this will be in agreement with the article 55 of the Comesa Treaty on competition which entails member states to prohibit any practice which negates the objective of free and liberalised trade. Mr. Mwencha said that Comesa is also designing a regional payment system that will suit the changed environment of the Comesa member states.        (Times of Zambia, 23.03.2001)
 

EVENT: WTO Regional Workshop on Competition Policy
The WTO regional workshop on Competition Policy and Multilateral Trading System for English and French Speaking African WTO Members and Observer Countries took place in Cape Town, South Africa from 22nd to 24th February, 2001. The workshop was organised by the WTO Secretariat in cooperation with the Government of South Africa with financial support from DFID of the United Kingdom.

The background to this workshop is that, for some time now, WTO has been studying the interaction between trade and competition policy. In this regard, many of the members had asked for additional and more intensive preparatory work to facilitate full participation by developing countries in possible decisions to be taken. The WTO workshop in Cape Town was a response to this concern. The workshop was aimed at:

• Providing understanding of basic aspects of competition policy and the role and significance of such policy for developing market economies and the international trading system.
• Disseminating information on the work done to date in the WTO working group on the interaction between Trade and Competition policy.
• Facilitating a dialogue on these issues and on the pros and cons of various options for the future.

The US is against any type of accord on competition at the WTO, but the EU is pressing vigorously for such an accord. Similar lines were adopted by the US and the EU representatives as well at the workshop. 
 

ANNOUNCEMENT: Scholarship for Consumer Leaders
Applications are invited from Consumer Leaders in select African countries for Indian Scholarship in the form of study tours in India. The objective of these study tours will be strengthening leadership skills of consumer activists in the region. Candidates from Sub-Saharan African countries are requested to apply. 

Contact Us

Africa Resource Centre

Suite 4.11, Main Post Office Building,
Cairo Road, P.O. Box 37113, Lusaka, Zambia
Ph: (00) 260-1-224992
Email: cutsarc@zamnet.zm
lusaka@cuts.org  

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