INTERNATIONAL

Global Trade Review: Governments urged to lift legal barriers to digital trade to mitigate Covid-19 impact – With the in-person review of the billions of documents that cross the trading system on any given day now jeopardised by stay-at-home orders around the world, banks are facing increased difficulties processing trade finance transactions. The only way to fully mitigate the potential implications will be swift and effective government intervention. So says the International Chamber of Commerce (ICC), which has called on governments to enable an “immediate transition” to paperless trading. In a direct call to action, the ICC has requested governments and central banks to take emergency measures to void all existing legal prohibitions on the use of electronic trade documentation, removing requirements for key trade documents such as bills of lading, bills of exchange, promissory notes and commercial invoices to be presented in paper format. The ICC has also encouraged governments to adopt the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Electronic Transferable Records. Despite extensive negotiation and unanimous adoption of the instrument by the United Nations General Assembly – and associated discussions in the World Trade Organization – the model law, adopted by UNCITRAL in 2017, has thus far only been enacted in Bahrain. Discussions have been held at the ministerial level in Singapore, Czechia and Slovenia, although these countries are yet to implement the legislation into their national law. Important provisions of the model law include that an electronic transfer record “shall not be denied legal effect, validity or enforceability on the sole ground that it is in electronic form”; that electronic and manual records are “functionally equivalent”; as well as general reliability standards for verifying signatures, integrity and other aspects of electronic records. (GTR)

Key Words: COVID—19, Global Trade, Global Business

Transparency: Why it matters at times of crisis - Information Note For trade in goods and services to flow, traders and governments need to know the rules.  New trade measures are being taken by governments every day in response to COVID-19. If the different actors engaged in supply chains are not aware of these new requirements, they can struggle to adapt to the new conditions, thereby risking unnecessary disruptions. For example, exporters and importers need to know about new procedures and regulations affecting exports and imports, newly introduced export restrictions, tariffs, taxes and regulations, and new customs rules and transportation regulations. Without this information, essential equipment like COVID-19-relevant medical goods can be blocked at the border, and critical inputs can be stopped in transit. Transparency is precisely about allowing access to this information and more. It enables governments and traders to keep up to date in a rapidly evolving trade landscape and provides much-needed clarity. Transparency is in the mutual interest of all WTO members, and it is a fundamental feature of the multilateral trading system as embodied in the WTO Agreements.  In the context of the COVID-19 pandemic, it is crucial to pool information within a multilateral platform to avoid duplication of efforts and to increase efficient collaboration. (WTO)

Key Words: COVID—19, WTO, International Trade

IMF: COVID-19 Policy Tracker - This policy tracker summarizes the key economic responses governments are taking to limit the human and economic impact of the COVID-19 pandemic. The tracker includes 193 economies. NOTE: The tracker focuses on discretionary actions and might not fully reflect the policies taken by countries in response to COVID-19, such as automatic insurance mechanisms and existing social safety nets which differ across countries in their breadth and scope. The information included is not meant for comparison across members as responses vary depending on the nature of the shock and country-specific circumstances. Adding up the different measures—tax and spending, loans and guarantees, monetary instruments, and foreign exchange operations—might not provide an accurate estimate of the aggregate policy support. The tracker includes publicly available and does not represent views of the IMF on the measures listed. (IMF)

Key Words: COVID—19, IMF, Policy Tracker

World Bank’s Database on Coronavirus (COVID-19) Trade Flows and Policies - This dataset summarizes statistics for (1) food and food-related products and (2) a sub-set of key medical supplies, which have been identified by the WHO as key to deal with the coronavirus crisis. The data show trade flows and trade policies across countries and products at different levels of aggregation. (World Bank)

Key Words: COVID—19, World Bank, Trade Flows Database

ITC’s MacMap COVID-19 Temporary Trade Measures page – This page monitors temporary trade measures enacted by government authorities in relation to the COVID-19 pandemic, which is rapidly spreading across the world. Governments are swiftly enacting temporary trade measures that aim to restrict exports of vital medical supplies and to liberalize imports of vital medical supplies. Due to the rapid development of this extraordinary situation, we are providing a global daily update of enacted COVID-19 trade measures. We urge users to take these measures into account when consulting market access information throughout Market Access Map. The objective of this initiative is to improve transparency in international trade and market access in line with the mission of Market Access Map. Section I provides global map overview of enacted measures. Section II provides status update for today. Section III provides detailed overview of measures by country. (ITC)

Key Words: COVID—19, ITC, Trade Measures

OECD’s Country Policy Tracker – The OECD is compiling data, analysis and recommendations on a range of topics to address the emerging health, economic and societal crisis, facilitate co-ordination, and contribute to the necessary global action when confronting this enormous collective challenge. This new series brings together policy responses spanning a large range of topics, from health to education and taxes, providing guidance on the short-term measures needed in affected sectors and a specific focus on the vulnerable sectors of society and the economy. Beyond immediate responses, the content aims to provide analysis on the longer-term consequences and impacts, paving the way to recovery with co-ordinated policy responses across countries. (OECD)

Key Words: COVID-19, OECD, Policy Tracker

WCO’s COVID-19 dedicated page – It is critical that Customs administrations continue to facilitate, not only relief goods, but goods in general, to help minimize the overall impact of the COVID-19 outbreak on our economies and societies. Customs administrations are strongly urged to establish a coordinated and proactive approach with all concerned agencies to ensure the integrity and continued facilitation of the global supply chain. This section of the WCO web-site is designed to compile information about the instruments, tools, initiatives and databases that can be utilized in the efforts to address the various COVID-19-related challenges faced by our Members and their stakeholders worldwide. (WCO)

Key Words: COVID-19, WCO, Policy Response

PAN AFRICA

Postponing AfCFTA would be a mistake – this is how we can avert it – In an open letter to the continent’s political leaders, prominent figures from the world of African business explain why a full-blown postponement of AfCFTA would be a mistake and how some aspects can be rescheduled. Africa needs AfCFTA both to beat Covid-19 and to speed up post-Covid economic recovery, they say. For various strategic reasons that we elaborate below, a full-blown postponement of AfCFTA would be a mistake. Covid-19 should accelerate AfCFTA, not slow it down. Africa needs AfCFTA both to beat Covid-19 and to speed up post-COVID economic recovery. The good news is that there are innovative logistical ways in which this can be done. As the continent’s leaders deliberate on this matter, we wish to draw the following points to their attention.

Phase 1: trade should start in July - Initial AfCFTA trading can focus on essential goods and services needed to fight the pandemic such as pharmaceuticals, personal protective equipment, food products and emergency cross-border transportation services. E-commerce can lead the way. A special resolution can be passed to approve essential ‘anti-Covid trade’ so that it wouldn’t require completion of outstanding Rules of Origin and Tariff Concession negotiations in order to proceed. Let history record that when the pandemic struck, the Great Flag of AfCFTA was not brought down; it was hoisted high to accelerate trade in the essential medical goods the continent used to win the battle. This will be an important symbolic victory in a time of crisis.

Phase 2: trading should be postponed but negotiations must continue - Full AfCFTA trading should be postponed to early 2021 but continue the negotiations via online videoconferencing platforms. Postponing negotiations until face to face meetings can take place will further delay preparedness for full take-off when the pandemic is over. All indications point to the fact that “virtual work” will be part of everyday life in the post-COVID world. That is why country negotiating teams should do their best to adapt to the changing times now that technology is our best friend. The AfCFTA should be one of Africa’s main weapons for post-Covid economic recovery but that will not happen if negotiations are postponed. That is why negotiations should continue via videoconferencing platforms so that by the time the pandemic is over, AfCFTA will also be ready for countries and businesses to utilise for post-COVID recovery in the areas of trade, investment, manufacturing, jobs and growth. (African Business)

Key Words: AfCFTA, Africa, COVID-19

African Union Covid-19 Response Fund Board of Trustees Holds Inaugural Meeting– The board of the African Union’s COVID19 Response Fund held their first meeting, online, on 27th April. AU Commission Chairperson Mr Moussa Faki Mahamat informed the newly nominated COVID-19 board of trustees that the Africa Centers for Disease Control and Prevention (Africa CDC) estimates that implementation of the Africa Continental Strategy on COVID-19 will require USD $420 million over the next six months”.  The Chairperson highlighted that the Union is using the economic, humanitarian and health dimensions as to get through the global pandemic. He explained to the board: “The economic dimension aims to realize debt relief for the continent, and the provision of sufficient liquidity to get Africa through the crisis. In this regard, the AU Chairperson, President Cyril Ramaphosa has appointed four special envoys to advocate with partners and the international community, providing substantial support to Africa in the face of the potential economic crisis caused by Covid-19. The humanitarian dimension refers to the situation where Africa is strengthening its partnerships with the United Nations and other international humanitarian agencies, to provide logistical support to states in caring for refugees, internally displaced persons and migrants. Last but not least, the health dimension focuses on strengthening preventive measures and health infrastructure, including provision of equipment, trained health personnel, and surveillance systems that inform government decisions.”  (AU)

Key Words: COVID—19, Response Fund, AU

‘How to survive crisis’ online kit available free for African SMEs – Invest in Africa (IIA), a private sector-led initiative focused on growing local businesses and local content in Sub-Saharan Africa, has created what it calls a Covid-19 SME survival programme to help SMEs overcome the potential damage to business caused by lockdowns and the ensuing economic shock. The number of cases may still be small across the continent but the economic impact from Covid-19 is bound to have a lasting effect on many businesses. The informal sector, which represents up to 50% of the economy in many countries, has already taken a brutal hit as will the many SMEs that already operate within a challenging environment. Their access to finance is limited and the general schemes that have been offered in more developed countries – wage support, loan guarantees – to help companies ride the storm are unavailable in countries that are already constrained in their ability to offer fiscal stimuli.

IIA’s ‘COVID-19 SME Survival Toolkit’  includes practical guides, solutions and recommendations to help African SMEs get through the many challenges the pandemic represents, as well as a series of webinars. William Pollen, CEO of IIA, emphasises the importance of supporting SMEs: “Because the vast majority of businesses in Sub-Saharan Africa are SMEs, they also provide nearly all employment opportunities, so ensuring their survival is critical to longer term economic growth prospects. What we’re aiming to achieve through this programme is not only to enhance SMEs’ chances of surviving this crisis, but also to help them emerge stronger and more resilient. “Whilst survival is the new theme of 2020, SMEs are in danger of being forgotten about. We wanted to ensure they don’t get left behind by arming them with practical support, built over years of experience, that can be implemented now, focusing on business-critical issues like cash flow, cost reduction, procurement and HR.”(African Business)

Key Words: COVID—19, Africa, SMEs

Africa - When Closed Borders Become a Problem - 2020 should be the year of open borders in Africa. After years of negotiations, the concrete implementation of the African Free Trade Area (AfCFTA) was finally on the agenda. The common African passport was also to become a reality this year. But then came the coronavirus pandemic -- and 43 of the 54 states in Africa closed their borders as a result. This figure was published by the Africa Centre for Disease Control and Prevention (Africa CDC) in early April. It is true that many countries allow goods to pass through, at least partially. However, the consequences for the continent, especially the long-term effects, can hardly be estimated. The African Union warns that border closures for people and goods could have a "devastating effect on the health, economy and social stability of many African states" that rely on trade with neighbors. This danger is quickly becoming a reality. Earlier this month, the GAVI vaccine alliance warned that vaccines are running out in some African countries due to border closures and restricted air traffic. Although GAVI says the problem has now been resolved, the example shows how much health care on the continent also depends on porous borders.

For goods transported by truck, meanwhile, the restrictions on the continent appear to be slowly easing. That's according to Sean Menzies, responsible for road freight transport at the South African logistics company CFR Freight. The company's trucks transport goods to almost all neighboring countries and member states of southern Africa's regional bloc, SADC, including food to Zimbabwe and mining equipment to the Democratic Republic of Congo or to Zambia. The spread of coronavirus and the resulting border closures brought restrictions for CFR Freight. Initially, only essential goods such as food, hygiene products or personal protective equipment could be transported across borders, Menzies said. Shortly afterwards, the regulations were also relaxed for cargo that reaches South Africa by sea but is destined for other SADC countries. These containers may be transported across borders, regardless of whether their contents are vital or not. (DW)

Key Words: COVID—19, Africa, Trade

COMESA: COVID-19 Response Measures put in Place by Member States – This publication comprises a listing  of  measures  that COMESA Member States have  put in place to contain the spread of the Corona virus. They cover trade facilitation and support to businesses, protection of the vulnerable from the impact of the spread of the virus and other relevant measures. It also includes the support received from the international community Aid agencies. A trend-line on the number of cases reported has also been included as well as the contacts of the focal points in the Ministries that coordinate COMESA activities   in Member States. (COMESA)

Key Words: COMESA, COVID-19, Response Measures

NORTH AFRICA

Morocco Records Increase in Trade Deficit and FDI, Fall in Remittances – The volumes of Moroccan imports and exports have recorded drops of 5.1% and 10.6%, respectively, in the first quarter of 2020 compared to the same period in 2019, said the Exchange Office on Thursday, April 30. The trade balance deficit has thus widened by 3.8%, and the coverage rate recorded a loss of 3.6 points due to a drop in exports compared to imports.  The change in imports is due to the decline in imports of capital goods, which dropped by MAD 3.866 billion ($392 million), semi-finished products (MAD 1.283 billion, or $130 million), raw products (MAD 1.102 billion, or $112 million), energy products (MAD 884 million, or $90 million), and finished consumer products (MAD 859 million, or $87 million). The import of food products has increased by MAD 1.748 billion ($177 million), reaching MAD 14.556 billion ($1.47 billion) at the end of March 2020 against MAD 12.808 billion ($1.3 billion) one year earlier. The evolution is due to the increase in purchases of barley, which rose by MAD 579 million ($59 million) and those of corn (MAD 405 million, or $41 million). (Morocco World News)

Key Words: COVID—19, Trade Deficit and FDI, Morocco

EAST AFRICA

EAC unveils COVID-19 Response Plan-  The East African Community has unveiled a comprehensive COVID-19 Response Plan to reinforce measures to protect and prevent further spread of the novel coronavirus pandemic within the region. The response plan was developed following a directive by the Joint Meeting of Ministers responsible for Health, Trade and EAC Affairs held via Video Conference, which directed the EAC Secretariat to finalize and submit the EAC Regional COVID-19 Response Plan to the Partner States. Among the key interventions proposed in the plan that was unveiled by the EAC Deputy Secretary General in charge of the Productive and Social Sectors, Hon. Christophe Bazivamo, on behalf on behalf of the Secretary General, are risk communication and community engagement, which will entail strengthening sensitization programmes and awareness creation on COVID-19. The response plan further seeks to ensure access to Infection, Prevention and Control (IPC) materials, laboratory supplies and equipment by the EAC Organs and Institutions, and the EAC Partner States. Another key intervention is to strengthen the region’s capacity for COVID-19 surveillance and reporting at all key border points, and build knowledge on safety measures, existing prevention and control strategies, and relevant regional guidelines. Mitigation of the fundamental impacts of the pandemic on the vital economic and social sectors of the region including Micro, Small and Medium Enterprises is another key intervention outlined in the document. (tralac)

Key Words: East Africa Community, COVID-19, Trade

Uhuru: Let’s play Kenyan content, buy Kenyan products – Kenyatta, while addressing the country on Labour Day, said that now is the time that Kenyans should unite to help flatten the coronavirus curve and joblessness. And this, he said, can be done by embracing local content and products. “To survive this pandemic we must look inwards…As our media dominates our living rooms, our mobile phones, I want to appeal to all of you to think only of our country,” the president said. “Play our Kenyan history, Kenyan music, Kenyan soap operas, Kenyan everything. If media plays Kenyan content, Kenyan content will build media after coronavirus,” he added. The Head of State also said that manufacturing sector can also be saved if we all start buying Kenyan to build Kenya. “It is during a great crisis, he added, that great opportunities are created, through spending our money on Kenyans so that in turn they can get to keep their jobs and feed their families.”He called for discarding of the long-held prejudice against Kenyan made products.“And this we must do by embracing that which is Kenyan. We must buy Kenyan and built Kenya, and that is how we shall survive. Let us spend our money among our own people so that in turn they can get to keep their jobs and feed their families. “To save jobs in our manufacturing sector, we must shed some of our long held prejudices against Kenyan made products and embrace them. Let us buy what we make, whether it is cooking oil, soap, Sufurias, spoons, bicycles, furniture or locally assembled cars. If we do that we will build Kenya.” (Nairobi News)

Key Words: Uganda, COVID -19, Business

WEST AFRICA

West Africa's (eco) tourism initiative: Last chance to protect African biodiversity – In June 2019, the Economic Community of West African States (ECOWAS) adopted the ECOTOUR Regional Tourism Policy and 2019-2029 Action Plan. It includes an overall assessment of the tourism situation, strategic priorities, a list of objectives and an implementation programme, highlighting that tourism already generated over three million jobs in the region.  The policy emphasizes local development, notably in creating skilled and unskilled jobs for marginalised groups and regions, and integrating local communities as guardians and beneficiaries of natural and cultural resources. Economic spinoffs and multiplier effects in tourism-related sectors such as transport, the environment, agriculture, fishing and construction are also recognised. Despite the COVID-19 pandemic outbreak, these remain valid objectives, and a concerted biodiversity protection strategy can provide a pathway to prevent future pandemics, at the same time enabling tourism diversification. When approving ECOTOUR, tourism ministers specifically called for ecotourism programmes to benefit vulnerable populations. Fortunately, West Africa hosts one of Africa's eight global biodiversity hotspots – the Guinean Forests include parts of 11 countries in West and Central Africa, with the Upper Guinean Forests subregion ranging across seven ECOWAS member states. At least 936 species of plants and animals there are globally threatened, a number likely to increase as more species are assessed.   (trade4devnews)

Key Words: West Africa, Eco – tourism, Trade

FG Urged to Stimulate Export to Avoid FX Scarcity –   The Nigerian Shippers Council (NSC) and members of the organised private sector have called on the federal government to immediately put plans in place to drive export to avoid foreign exchange scarcity and economic depression as it begins to ease the lockdown in key states in the country to halt the spread of COVID-19. They stated this in Lagos, when the NSC hosted members of the organised private sector, which included: the Nigerian Association of Chamber of Commerce Industry Mines And Agriculture (NACCIMA), Lagos Chamber of Commerce & Industry (LCCI), Manufacturers Association of Nigeria (MAN) and Shippers Association of Lagos. Speaking at the meeting, the Executive Secretary and CEO of the NSC, Mr. Hassan Bello, stressed that the Nigerian economy has to be export-driven, adding that how quickly the pandemic is put under control and the policy choices that the government has to include the impute of the private sector at this critical time. “We need to export; we have to look for a way to streamline our dependence on imports a country. To achieve this, our ports must be reformed, all processes must be automated, all terminals must have electronic transaction and the same applies to shippers and freight forwarders, the banks and the Nigeria Customs Service (NCS),” he said. He also called for intermodal transportation to ensure swift evacuation of cargo from the port stressing that effective use of trains and barging for cargo evacuation will reduce the cost of transporting goods from the port. (This Day)

Key Words: Nigeria, Export, COVID-19

SOUTHERN AFRICA

Covid-19 flings online shopping open – Embracing the fourth Industrial Revolution continues being a challenge in Namibia, and technological advancements such as online or e-trading have not caught up on the local market. However, with the country reeling from the effects of the Covid-19 pandemic, with 16 confirmed cases, a clarion call has been made for Namibians to embrace online shopping, as it is not only efficient and easy, but it also enables people to avoid crowds. Trade minister Lucia Iipumbu last week said since the lockdown came into effect on 27 March for three weeks, and was extended by another two weeks to 4 May, the government has been advocating e-commerce and e-trading, arguing that such arrangements are safe, especially when it comes to practising social distancing.“The initiative cannot only come from the government but also from the traders themselves. To a certain extent, some businesses have re-modelled and customised their services to e-trading. I have also seen some restaurants and food outlets that have devised mechanisms for ordering and delivery of food parcels to customers.  “We are encouraging such arrangements, and when we talk about the fourth Industrial Revolution, that is where we are headed. Going forward, we will look at legislation to see how we effect this,” she said. The Namibian spoke to some traders who own online shops to better understand traffic to their sites since the lockdown, and they agreed that the lockdown had brought a lot of business. (The Namibian)

Key Words: COVID-19, Namibia, E-Commerce