WTO Public Forum 2024 explores protectionism and manufacturing policies, as Africa embraces free trade through AfCFTA to boost growth and competitiveness.
At the 2024 World Trade Organization (WTO) Public Forum, attendees gathered in Geneva to discuss global trade’s uncertain future. This year’s discussions focused on manufacturing, political manipulation of trade policies, and the implications for less developed economies, especially in Africa. As trade continues to face rising protectionism and political manipulation, or “beggar-thy-neighbor” practices, many African nations are increasingly turning to free trade and strategic partnerships as a pathway to economic growth.
The Politicization of Trade and Manufacturing
One of the central debates at the forum revolved around the politicization of trade. Dimitry Grozoubinski, a former trade negotiator and author of Why Politicians Lie About Trade… and What You Need to Know About It, presented findings on how politicians often simplify or distort trade issues to cater to voters. He argued that political actors seek easy answers to complex trade challenges, especially in manufacturing, where job losses and economic shifts are often blamed on global trade.
Similarly, Harvard Professor Robert Z. Lawrence presented insights from his book Behind the Curve: Can Manufacturing Still Provide Inclusive Growth?, where he showed that political leaders often prioritize manufacturing policies due to the ease of tracking productivity growth in these industries. However, Lawrence cautioned that efforts to revive manufacturing may be at odds with global realities, where economies typically transition away from manufacturing as they develop. Both scholars underscored that politically driven policies often fail to align with the economic evidence, leading to protectionism that harms long-term trade relations.
Africa’s Turn Toward Free Trade
In stark contrast to these global protectionist trends, African nations are embracing free trade as a means to drive economic growth. The African Union’s Private Sector Trade and Investment Committee (PAFTRAC) launched its fourth annual survey of African CEOs, which highlighted the optimism surrounding the African Continental Free Trade Area (AfCFTA). African CEOs see the AfCFTA as a vital tool for overcoming trade barriers and boosting intra-African trade, despite challenges like inflation and lingering COVID-19 supply chain disruptions.
At the WTO Public Forum, PAFTRAC emphasized the importance of infrastructure development and trade facilitation policies in advancing African trade. Notable projects like the Lobito Corridor, which aims to connect Angola, the Democratic Republic of the Congo, and Zambia, were highlighted as examples of regional integration that can enhance cross-border trade and economic development.
Unlocking Africa’s Manufacturing Potential
The forum also addressed Africa’s potential to become a global manufacturing hub. Irene Sun, an expert in African industrialization, suggested that private investment driven by the AfCFTA could transform Africa into the world’s next great factory. By leveraging the AfCFTA, African nations can develop value chains based on their unique factor endowments, enabling them to produce competitive goods for global markets.
However, the forum also warned of the risks of premature de-industrialization, as seen in Nigeria’s struggling textile industry. Poor industrial policies and protectionist measures have led to the collapse of once-thriving sectors. The AfCFTA offers a chance to reverse these trends by fostering a more integrated and competitive African economy, built on sustainable industrial development and free trade.
A New Path Forward for Africa?
As the WTO Public Forum 2024 discussions revealed, while protectionism continues to dominate global trade discussions, Africa is charting a different course. By embracing free trade through the AfCFTA, African nations have the opportunity to unlock their economic potential and build competitive industries. The insights from the forum underscore the importance of strategic infrastructure development and policy coordination to ensure that Africa’s economic future is not derailed by the same protectionist forces challenging global trade today.
This article is based on a blog post by Patrick Utomi, Brown Capital Management Africa Program Public Policy Fellow and Professor at the Lagos Business School.
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