Annan calls for end to tariffs and subsidies that stifle Africa's trade

United Nations Secretary-General Kofi Annan called on industrialized countries today to lift the tariffs and subsidies that lock poor countries into poverty by reducing their ability to trade manufactured goods.

"I call again for an end to the subsidies and tariffs that are stifling the ability of poor countries to compete fairly in the international trading system and trade their way out of poverty," he said in a statement marking Africa Industrialization Day, which is being observed under the theme "Acceleration of Africa's Integration in the Global Economy through Effective Industrialization and Market Access."

African countries needed to move away from long-standing trading patterns of depending excessively on exports of raw materials and semi-processed goods and the traditional comparative advantages of raw materials and unskilled labour, Mr. Annan said.

"Greater emphasis on higher-value-added products and specialization would reap rewards," he said.

"Industrialization makes a varied and valuable contribution to the alleviation of poverty," he added. "It raises productivity, creates employment, reduces exposure to risk, enhances the income-generating assets of the poor and helps to diversify exports."

In the UN Industrial Development Organization (UNIDO) report for 2002-2003, the industrial output of sub-Saharan Africa, including South Africa, declined to 0.7 per cent of world manufacturing value added in 1998, from 1 per cent in 1985.

Without South Africa, the figure declined to 0.3 per cent of world manufacturing value added from 0.5 per cent in the same time frame, according to UNIDO.

Improving the competitiveness and effectiveness of African industries depended on a context of dynamic, stable economies, solid export bases, steady investment flows and, "above all, political stability," Mr. Annan said.

Governments, by their policies, should help to nurture comparative advantages by creating an enabling environment for business and industry, he said.

In his message, the President of the General Assembly, Julian R. Hunte of St. Lucia, underlined the progress made. The programme of the New Partnership for Africa’s Development (NEPAD) recently established by African countries themselves, he said, is a “clear demonstration of their commitment to alleviate poverty, combat marginalization, build global partnerships for investment and technology promotion, diversify the export base and gain access to international markets.”

“The strategy for industrialisation and market access is critical,” he added, “considering that LDCs (least developed countries) have neither surplus capacity of exportable products nor production capacity to take immediate advantage of new trade opportunities.” UNIDO is to be commended for its continued commitment to address these issues and to promote Africa’s integration into the global economy, he said.