Re: Africa ponders challenges as WTO steps in way of AU self-financing model

Editor

We already know of the agricultural/farming subsidy mechanism that is widely used in the EU to promote local agricultural production to the detriment of African agricultural exports.

The U.S. too greatly subsidises her wheat farmers to the extent that their production clearly contravenes anti-dumping trade policies in the main. So nothing new here.

Donald Kaberuka should backward-engineer this non-AU goods tariff: subsidise African producers by paying them a retainer equivalent to non-AU tariffs in weighted and absolute terms on AU produced goods at the expense of non-AU goods.

In so doing Kaberuka’s account payables surreptitiously morph into account receivables albeit front loaded.

Here the only feasible challenge would be how to whip up a collectively funded buffer fund (akin to Europe’s Common Agriculture Policy) to pay out these subsidies under the understanding that the same outgoings will be replenished from tariff collections.

If unassailable, then retro-subsidise: tax all goods irrespective of origin with the right hand then reward African producers selectively with the left. What a shame Africa can’t "quantitatively ease”, without inflationary pressures coming to the fore, unlike the powers that be.

Otherwise funding/capitalising our "Common AU Policy” would be a done deal without much hoo-hah.

Ultimately, Western powers wouldn’t like to deal with an emancipated Africa.

The U.S. and her puppet quangos (WTO) would insist on their political yoke remaining in place so as to steer favourable (read exploitative) economics on their part, not Africa’s.

This mirrors their so called donor/development aid: an insipid undercut for all intents and purpose. 2 cents into Africa’s pot, 7 drawn out on the churn... amounts to "fake/negative aid.” For the Western casino believes Africans aren’t any good at card counting.

Gwanga Mujjye