Ugandan President Museveni delivers a speech at the opening of the Conference of African Ministers of Finance Planning and Economic Development opens in Kampala, Uganda, May 21, 2004. The two-day conference is aimed to promote Africa to develop its economy by seizing opportunities in the global trading market. (Xinhua Photo)

   KAMPALA, May 21 (Xinhuanet) -- A good humored Ugandan President Yoweri Museveni called Friday afternoon in his country's capital Kampala for African unity in trade talks with the West to stop the continent from "exporting dollars," claiming the current global trade system benefits the industrial world at the cost of Africa's economy.

   Declaring opening of the Economic Commission of Africa's meeting of African finance and economic ministers, Museveni began his hour-long speech with an introduction to trade, explaining demand as the combination of desire and ability to buy.

   "Africans have got ... desires, but they don't have the ability to pay," Museveni said.

   The President attributed African's lack of purchasing powers to the unfair trade policies practiced by western industrial countries, saying that without access of African products into the West, the world's poorest continent can't develop commercial agriculture.

   The president's remarks were supported by the South African Finance Minister Trevor Manuel, who said in a speech read on behalf of him that the West uses tariffs and subsidies to diminish the competitiveness of African products, especially finished products with added value. 

   The minister gave an example, saying that Europe puts 21 percent tariffs on finished cocoa products from Africa, but no tariffs on raw cocoa from the continent. The result of such trade,Museveni said, is that Africa loses great amount of money in trade with the industrial world. He claimed his country loses about 15 dollars for every kg of raw coffee exported.

   "It means ... you are donating dollars to somebody outside, and secondly you are donating jobs," Museveni said, as jobs in industry are lost if the country only exports raw materials.
Africa's economy is indeed impaired by their export of primary commodities to the West.

   According to a recent ECA overview of the 2004 economic report on Africa, the non-oil producing African countries suffer almost 120 percent of GDP in "cumulative terms of trade losses in 1970-1997," one explanation of the worsening economic situation and growing population living with poverty in the continent.   

   The way out, Museveni said, is that African countries negotiate together with the West under the New Partnership for Africa's Development, as African countries are all two weak to negotiate alone.

   Museveni also pointed out that Africa cannot rely on aid for development, reminiscent of his recent row with international donors, who funds half of his government's budget, over his
defense spending. "Aid can not develop a country," he said.

   The need to unite in negotiation is also stressed by the African Union Commissioner for Trade and Industry Elizabeth Tankeu. She said a "collective response is necessary to achieve a redress of the imbalances in the international trading system," given the smallness and weakness of individual economies of the African countries. Museveni and other speakers in the opening session acknowledged Africa's economic growth in the past year of 3.6 percent.

   But South Africa's Manuel and ECA executive secretary warned that the growth is not enough, if Africa is to reduce poverty and achieve development goals laid out by the United Nations.

   Manuel also called for a fairer trade environment, saying that the "trade distorting agricultural subsidies and disproportional tariff protection on agricultural products a particularly detrimental to economic development in Africa."

   Manuel also said relaunching of the Doha Round of the World Trade Organization global free-trade talks would benefit the developing world.

   The situation is improving, the ECA's meeting in Kampala has its focus on trade, and decision makers will be able to synchronizing their trade policies in order to facilitate regional integration and raise the voice of Africa as a whole in trade talks with the West. Maybe one day, African countries will be the real "recipient" of aid to support their sustainable development, and not "dollar exporters" as Museveni puts it.  Enditem