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Today, the international attention that Invest Gambia receives tells us much about the global economy in which Gambian
businesses operate. My aim is, within short few years, work with the Government and Businesses to:- move the Gambia from
sheltered to open economies, from local to global competition, from national to world wide financial markets, from location,
raw materials, indigenous capital as sources of national competitive advantage, to skills, knowledge and creativity as what
makes a difference.
The Gambia is doing well, but I will work very closely with the government to create
a Gambia that’s even more competitive, more flexible, with its sights on higher productivity, employment and growth
- with modernisation of labour, capital and product markets to bring it about.
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Developed countries should accelerate the process of dismantling their barriers; stop discriminating against goods in which The Gambia have a comparative advantage; and stop subsidising their own production and dumping their surpluses so that Africa’s producers get a chance to compete. First, developed nations must maintain momentum for multilateral progress and an ambitious, pro-poor outcome to the Doha Development trade round which delivers real market access for African goods in which The Gambia is a forefront nation. The Gambia do not have valuable minerals to exploit so agriculture makes up 70 per cent of our national employment and provides up to 30 per cent of Gambia’s national income. Over half a million people working on the land in the rural Gambia struggle to survive on less than one dollar a day. Second, on their rules of origin requirements mean that goods that should receive preferential access into the EU face a European tariff and it is important to improve Gambia’s access to their markets not just in theory but in reality. So I also call on Europe and the developed countries to amend rules of origin requirements - requirements which instead of promoting fair trade have become a barrier to fair trade and are now identified not with fairness but protectionism. Often they involve unaffordable administration costs for The Gambia and alike. Third, regional Economic Partnership Agreements between the EU and The Gambia should put development first. The agreements should be designed to deliver real development benefits and permit The Gambia the necessary flexibility for sequenced reform. Because I believe bilateral agreements have not always been in the interests of the Gambia, I call on the EU in its work on Economic Partnership Agreements in the coming months to take a non-mercantilist approach so that The Gambia is able to sequence their trade reform and participate on equal terms in the international economy. Fourth, I call on developed countries not only to improve trading arrangements but to
help The Gambia build capacity to trade. It is not enough to say ‘you're on your own, simply compete’. They
have to say ‘we will help you build the capacity you need to trade’. Not just opening the door but helping you
gain the strength to cross the threshold. For too long, enabling countries to trade has been defined narrowly as equipping them with the capacity to negotiate. But what is more important is equipping them with the economic and infrastructure capacity they need to take advantage of trading opportunities. |
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While aid that helps the poor (including The Gambia) is $50 billion a year, trade subsidies that hurt the poor run to more than $300 billion. The European union spend as much subsidising agriculture as the whole income of all the 689
million people in Sub Saharan Africa taken together. While average trade barriers have fallen to 3 per cent, tariff peaks can reach
as high as 15 per cent - and much higher in agriculture. The practice of tariff escalation provides effective market barriers
for many products of interest to The Gambia and other African countries. And non-tariff barriers which restrict market entry
for developing countries include rules of origin, administrative procedures, customs fees, extra taxes, shipment inspections,
even currency restrictions.
But they must do more. Certain
principles should drive the next stage of the Doha Round: |
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Infrastructure is key. Transport costs in The Gambia can sometimes be a bigger burden of the cost of exporting than tariffs. Even today in 12 African countries less than 10 per cent of their roads are paved. With freight and insurance costs representing 15 per cent of the total value of Gambian exports it is difficult for us to be competitive. And telecommunication costs are such that calls from the Gambia to the USA, UK and EU are five times the costs of calls from a developed country. So we have to recognise that The Gambia will need additional resources from the richest countries to help us build physical infrastructure - road, rail, electricity, telecommunications - institutional capacity - from legal and financial systems to basic property rights - and, of course, investment in human capital to enable growth, investment, trade and therefore poverty reduction. We also need to recognise that The Gambia will face significant transitional costs as we adjust to more open trade patterns. To tackle this issue, the G7 AND G8 should ensure that The Gambia is allowed the flexibility to carefully design and sequence trade reform within our own poverty reduction strategies. They should consider additional grant resources to help the Gambia our people - to adapt and reap the benefits of more open global markets So we must do all we can to create the most
favourable environment for investment in the Gambia and this is what I am trying to do - Invest Gambia will simultaneously
stage trade conferences and exibitions, fairs and awards in the world’s major and upcoming economies. And finally visit
Gambia, its a great place to work, live and invest; Thank you |
