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1 PACT EAC2 Inception Meeting

MEETING REPORT CLIMATE-AWARE, TRADE-DRIVEN AND FOOD SECURITY ENHANCING AGRO-PROCESSING DEVELOPMENT FOR EAST AFRICA

PACT EAC2 PROJECT INCEPTION MEETING FEBRUARY 29 – MARCH 1, 2016 KUNDUCHI BEACH HOTEL, DAR-ES-SALAAM, TANZANIA

Project Inception Meeting 2

OPENING

OPENING SESSION

The high level inauguration of PACT EAC 2 project set the tone of the two-day Project Inception

Meeting (PIM) by looking at the lessons from the first phase of the project as building blocks of the

phase two. The positive messages delivered by all the speakers in the session permeated the

proceedings of the subsequent substantive sessions and contributed to the achievement of the

PIM objectives.


SPEAKER PROF. FORTUNATA MAKENE, HEAD OF RESEARCH, ECONOMIC AND SOCIAL RESEARCH FOUNDATION (ESRF), TANZANIA

Representing the PACT EAC2 country partner and the host organisation in Tanzania; Prof. Makene was

grateful to CUTS and SIDA for the PACT-EAC project which had promoted regional economic integration

while ensuring a more secure food supply and sustainable use of natural resources through trade. She

mentioned that the project had brought together, informed, trained and through policy advocacy action,

changed the attitudes of East African stakeholders who form a critical mass for transformation. She said

that the project’s first phase had realised notable achievements; in Tanzania the Draft Forest Policy has a

focus area on Wood fuel which promotes alternative to charcoal production and sale in rural areas. In

Kenya, the project was able to influence Murang’a County to double area coverage of its radio weather

programmes for farmers. The results as she would put were a culmination of efforts from project partners

working closely with respective government ministries across the 5 EAC countries.

SPEAKER RASHID S KAUKAB, EXECUTIVE DIRECTOR, CUTS INTERNATIONAL, GENEVA

In his opening remarks, Mr Kaukab acknowledged the presence of many relevant national and regional

stakeholders from EAC, as well as from some international organisations. He particularly mentioned the

participation of four Geneva ambassadors of EAC countries; several WTO and UNFCCC negotiators; and

observers from Ethiopia and Tunisia. While looking back, he recalled the PIM of PACT EAC1 held in

Arusha, Tanzania in February 2011 and how enriching the experience of PACT EAC1 implementation has

been for CUTs and for him personally. This experience, partnerships, lessons, knowledge and skills will be

extremely valuable for the effective implementation of PACT EAC2. While looking forward, he emphasised

the importance of setting a clear destination, identifying the best pathways to reach there, working with the

like-minded partners and companions, and anticipating and dealing with the challenges with steadfastness

and flexibility. He was confident that PIM would provide these. He concluded by pointing out that CUTS

staff had worked hard to prepare a black and white sketch and the PIM participants would transform this

into a complete and coloured map with their deliberations.

SPEAKER JOHANNES SVENSSON, EMBASSY OF SWEDEN, REGIONAL DEVELOPMENT COOPERATION SECTION, NAIROBI, PROGRAMME MANAGER

Mr. Svensson gave an illustrative story which highlighted the plight of about 70% of EAC population who

are small-holder farmers majority of them being women who don’t necessarily share the same set of

challenges as their male counterparts. He mentioned that initiatives like PACT-EAC2 are geared towards

helping the region to figure out how small-scale farmers can be assisted through policy interventions in the

areas of food security, climate change and trade in managing everyday challenges towards long-term

improvements of small businesses and livelihoods. He reiterated the need to establish a clear path on how

research and advocacy eventually impacts on poverty through directly working with vulnerable groups like

women, smallholder farmers and those from marginalized areas. He laid emphasis in the fight against


poverty worldwide, with poverty reduction being the overall mandate of Sida. He mentioned that Sweden

had adopted a feminist foreign policy making gender a prioritized cross-cutting issue in Sida’s incoming

strategy for regional development cooperation in Sub-Saharan Africa. Climate change and trade are also

areas of great emphasis for Sida. He said that these priorities informed Sida’s rationale in supporting CUTS

and the PACT EAC programmes since 2011 and that Sida was particularly happy about CUTS’ ambition to

give focus on these priority areas especially on smallholder farmers, women and marginalized areas in the

PACT EAC2.

SPEAKER HON. FLAVIA NABUGERE, MINISTER OF STATE FOR ENVIRONMENT, UGANDA

In her Keynote Address, Hon. Flavia recalled her engagement with the project in PACT EAC1 where she

provided guidance during implementation and that despite the numerous challenges the project had

succeeded in creating impact through policy and practice changes. The knowledge, experience, networks,

and partnerships that were built formed the strong foundations for PACT EAC2 project. She called PACT

EAC2 project, “the need of the hour”. While explaining this, she mentioned that climate change was being

faced by world citizens and that combating it would require a holistic approach in ensuring sustainable

livelihoods, environment, economy and democracy for the region. She recalled the commitments made by

governments in Paris in December 2015 to implement agreement through contributions in processes that

are owned by citizens and were conscious of linkages between climate change, agriculture, food security

and trade.

Her second point recognised trade as an area that will continue to drive economic processes with social

and environmental consequences and that after the last WTO Ministerial Conference held in Nairobi in

December 2015, there will be need for a fair and balanced multilateral trading system amidst growing

regional agreements. She said that WTO discussions will continue to have direct and indirect impact on the

region’s agriculture, food security, climate change and agro-industrialisation policies and actions. She

urged on the need to start looking at agriculture and industry together and not separately as has been done

traditionally. Agro-industrial development represents a huge opportunity for the EAC region and is a critical

engine of economic growth and poverty reduction. She cited a key challenge being lack of knowledge and

capacities among EAC private and public stakeholders involved in policy work around the linkages

between climate-food-trade and agro-industry. This as she pointed out had resulted in inappropriate agro-

industrialisation of the region leading to industrial pollution and inefficient use of resources which ultimately

will exacerbate climate change and erode trade competitiveness putting in danger East Africa’s food

security. She said that in an ideal scenario trade policies should ensure availability of inputs despite

climate change, markets for the processed products and access to cleaner technologies; while climate

change policies should support these efforts through targeted adaptation and mitigation initiatives.

Madam Nabugere like other speakers continued to affirm the roles trade, agriculture and agro-industry had

played in food security and ultimately poverty reduction of the region and that it was a matter of urgency

that EAC Partner States put in place polices and strategies that holistically address both opportunities and

challenges of climate change, both at national and regional levels.


SPEAKER MOSES MARWA, PRINCIPAL AGRICULTURAL ECONOMIST, ON BEHALF ON THE SECRETARY GENERAL OF THE EAC SECRETARIAT

Mr. Marwa delivered the Keynote Address on behalf of the EAC Secretary General, Dr. Richard Sezibera

who was unable to attend. In his speech, Dr. Sezibera informed that the EAC Secretariat had been

following the implementation of PACT EAC1 and was grateful to those charged with its implementation

which saw policy impacts in some partner states. He informed that EAC Secretariat was conscious of the

overwhelming challenges posed by climate change to the region particularly on agriculture, agro-industry,

trade and foods security. Climate change had been cited as one of the major considerations in many of the

EAC policies and strategies and EAC had put in place the Protocol on Environment and Natural Resources

as well as the EAC Climate Change Master Plan (2011-2031) in addition to the EAC Climate Change

Policy and Strategy. He acknowledged that agro-processing and agri-business remained among priority

sectors targeted by the EAC in the short term in which policy efforts will be directed towards increase in

investment so as to improve competitiveness and value addition opportunities.

Dr. Sezibera admitted that despite efforts to bring structural transformation through industrialisation and

private sector development the EAC region had performed dismally with only 19.2 per cent share of the

industry in the region’s GDP, out of which only 8.9 per cent being from manufacturing this is despite a

target of 25% for all five Partner States. He mentioned that one of the ways of contributing to achieve this

target was consideration of appropriate policies for climate-aware, trade-oriented, food security-enhancing

agro-value-addition in the EAC region. He concluded his remarks by thanking CUTS for heeding the

suggestion from the EAC Secretariat on the inclusion of agro-processing/agro-industry in the follow up

project. He commended the incorporation of gender in the project which is also in line with the EAC

Agriculture and Food Security Action Plan that mentions the need for development of training and technical

support programmes for women in the agro-processing sector.

SPEAKER DR. JULIUS NINGU, DIRECTOR OF ENVIRONMENT, TANZANIA

Dr. Ningu delivered the inaugural speech on behalf of Hon Joelson L. Mpina Deputy Minister of State, Vice

President’s Office – Union Affairs and Environment as Hon Mpina was unable to attend in person it. In his

speech Hon. Mpina underscored the relevance of the agricultural sector in Tanzania’s economy where it

contributes 23% of the country’s GDP and accounting for 85% of the country’s exports. As he would put it,

the sector was highly dependent on weather and weather changes were likely to negatively affect this

sector due to climate change thereby hampering productivity; a situation that would result in food insecurity

and suffering to the agricultural sector as a consequence of absence of tradable agricultural products. He

said that the concept of PACT EAC2 was commendable as it builds on the essence of promoting linkages

between Agriculture (food), Climate and Trade so as to come up with coherent policy measures that will

prevent east African countries like Tanzania from facing the impacts such as drought, famine and hunger in

the region. He affirmed that trade, climate and industry policies can have net impact on food security: a

situation that is likely to positively impact on the creation of appropriate agro-industrialisation development.

In doing so he stressed on the need for agro-industrial policies in ensuring that growth of agro-industry has

minimum industrial pollution and wastage of resources while trade policies to ensure the availability of

inputs in the face of climate change, markets for the processed products, and cleaner technologies.

Climate change policies would support these efforts through targeted adaptation initiatives as well as

suitable mitigation targets.


He informed the meeting that Tanzania’s government had made efforts to address climate change

mitigation through strategies that have been mainstreamed up to the grassroots level where the effects will

be felt most. He recognised the existing gap between national trade policy and climate change issues and

that leaving aside an important component like climate change could have negative effects on Tanzania’s

economy. In conclusion he pointed out that PACT EAC2 project will serve as a guiding tool towards

enhancement of the region’s agro-value addition capacity and vowed for his Government’s support even as

the country gears towards having an industrial economy that would propel economic growth and human

transformation. He then formally declared the PIM open.


SESSION 1

FROM PACT EAC TO PACT EAC2 BUILDING ON IMPACT AND LESSONS


Under the chairmanship of H.E. Mr Modest Jonathan Mero, Permanent Mission of Tanzania to the UN and

WTO in Geneva, CUTS International Geneva presented the PACT EAC2 project and the road that led to

launching it following a first four-year phase.

OVERVIEW OF PACT EAC PROJECT: RATIONALE, OBJECTIVES AND ACTIVITIES LESLIE DEBORNES, ASSISTANT PROGRAMME OFFICER AT CUTS INTERNATIONAL, GENEVA

Leslie Debornes, Assistant Programme Officer at CUTS International Geneva started with a presentation

on integrating key lessons and stakeholders’ demands from PACT EAC in PACT EAC2. The first phase of

PACT EAC, implemented in partnership with CUTS Nairobi and national partners, contributed to the

building of knowledge and capacity of relevant EAC stakeholders on the linkages between trade, climate

change and food security policies. This was done through a set of organically linked research, advocacy,

networking and training activities at the national, regional and multilateral levels. For the past two years,

based on recommendations made in the external evaluation report of the project, stakeholders have been

involved in the design of a follow-up project through surveys and dedicated discussions at various

meetings, expressing the needs future work should address. They pointed out the need to focus on agro-

value-addition which is the next step for the region’s development. They also felt the need to improve

interaction and coherence among EAC negotiators in the WTO and UNFCCC, to facilitate articulation of a

harmonised negotiating agenda in both negotiating fora. To this effect, it was suggested to continue the

established forum for WTO negotiators, and launch a similar facility for climate negotiators.

RESULTS OF PACT EAC FINAL IMPACT ASSESSMENT: LESSONS LEARNT & RECOMMENDATIONS JULIEN GROLLIER, PROGRAMME OFFICER AT CUTS INTERNATIONAL, GENEVA

Moving the second phase, the objectives, methodology and activities of the PACT EAC2 project were

presented by Julien Grollier, Programme Officer at CUTS International Geneva. The project will build

capacities of East Africans for climate-aware, trade-driven and food security-enhancing agro-processing in

their region. In particular, the project expects that national, regional and multilateral stakeholders will: (i)

better understand how agro-processing development can be more climate-aware, trade-driven and food

security-enhancing; (ii) be better capable to contribute to policy change and policy dialogue in this regard;

(iii) EAC delegates to the WTO and UNFCCC are better capable to promote their interests in this regard;

(iv) interact more regularly with each other in this regard; (v) seek to collaborate more with each other in

this regard. Until 2019, it will bring together, inform, train and move to advocacy action hundreds of

stakeholders from the government, businesses, civil society, media, academia and farming communities.

PLENARY DISCUSSION

During the ensuing discussion, stakeholders reacting to the presentations provided their views and

suggestions towards implementing the project. The key messages conveyed included:

Although the project focuses on policy, it should identifies ways to go down to the grassroots level

through capacity building.

It was pointed out that the most critical policy challenges in the region don’t relate to the lack of

policies but rather to shortcomings in their implementation. This is an aspect that should also be

analysed and addressed by the project.


It was suggested that the project, which was developed several months ago, should analyse the

meaning of the recent Paris Agreement at the UNFCCC COP21 for its own implementation.

The project research should be sector-specific when looking at value, and consider the importance

of research and development. Identified sectors should be prioritised in line with policy objectives

in regional and national strategies.

The project’s EAC Geneva Forum could find a way whereby WTO negotiators in Geneva can

sensitize the grassroots on taking advantage of WTO agreements (e.g. RoO, Services Waiver)

The project’s stakeholder inclusiveness and gender representation was praised. It was also

suggested to consider greater representation of parliamentarians and youth.


SESSION 2

STATE OF PLAY HOW COHERENT ARE EAST AFRICAN AGRO-INDUSTRY POLICIES VIS-À-VIS CLIMATE CHANGE, FOOD SECURITY AND TRADE?


Presentations and discussions under this session focused on assessing policy synergy, or lack of

it, concerning climate-food-trade and agro-industry at regional and national levels.

CONCEPTUAL FRAMEWORK & OVERVIEW OF LINKAGES IN THE CURRENT POLICIES RELATED TO AGRO-PROCESSING, CLIMATE, FOOD AND TRADE MARTHA G. BEKELE, CUTS NAIROBI,

Martha G. Bekele, CUTS Nairobi, presented on the theoretical linkages of Agro-processing with climate

change, food security and trade; the state of play of AI and CC in the EAC as well as policy linkages within

EAC documents. On the latter, despite the EAC having many policy documents that touch on climate

change, food security, trade and Agro-processing, such as the EAC Treaty, Vision 2050, the Climate

Change Master Plan, Industrialisation policy, strategy and action plan, EAC Agriculture and Rural

Development Strategy, among others, there is no coherent policy document nor a coordination mechanism

for a holistic approach towards climate-aware, trade-driven, food-security-enhancing Agro-processing

development.

STATE OF PLAY OF LINKAGES & POLICY GAPS ON THESE ISSUES IN UGANDA JANE NALUNGA, SEATINI, UGANDA

Jane Nalunga, SEATINI, Uganda, presented on the imperatives of an AI policy in relation to mainly

competitive AI and its impact on poverty reduction and development. She stated that Uganda does not

have a standalone AI policy and strategy mostly due to lack of appreciation to the importance of AI in the

country. Ms. Nalunga wound by citing priority issues including AI and its linkages with key relevant policies;

the need for clear strategy direction; roles and responsibilities of the public and private sector in AI

development, among others.

STATE OF PLAY OF LINKAGES & POLICY GAPS ON THESE ISSUES IN TANZANIA PETER NYARONGA, TANZANIA MINISTRY OF ENVIRONMENT AND NATURAL RESOURCES

Peter Nyaronga of Tanzania Ministry of Environment and Natural Resources started by stating that his

country does not have specific policy on AI, which is basically being governed by the Sustainable Industrial

Development Policy (1996-2020). He criticised the National Bureau of Statistics’ data on manufacturing in

Tanzania (2007) for misguiding SME promotion measures that failed to pay attention to the informal sector,

particularly micro enterprises, which occupy 80 per cent of operating manufacturing enterprises.

STATE OF PLAY OF LINKAGES & POLICY GAPS ON THESE ISSUES IN RWANDA FRANCÇOIS MUNYENTWARI, ACORD RWANDA

François Munyentwari, ACORD Rwanda, presented the policy state of play in Rwanda where, just like the

previous speakers on regional and national level policies, Rwanda also does not have an agro-industry

policy. He observed that there usually is cooperation among ministries during the design of

policies/strategies but that is where the cooperation ends whereby implementation and even review of

these documents are left only for one ministry. In terms of policy issues, the presenter cited the following

gaps: ‘departmentalisation’ of policies (lack of a holistic approach), policy illiteracy among non-state actors,

streamlining inclusive FS and competition from free trade arrangement.


PLENARY DISCUSSION

During the plenary discussion, interventions emphasised on the importance of agro-processing in

development and poverty reduction efforts of the region. Countries were urged to focus on reliable supply

of energy and other enabling factors such as roads, water supply, good business environment, which will

attract investors and change the share of manufacturing in the region for the better.

Speakers, both from the different countries and from the EAC Secretariat, agreed that there is clear lack of

well-coordinated framework both at national and EAC Secretariat level. A speaker from Burundi also

informed other participants that the case of Burundi was no different from the cases presented during the

session in that agro-industry is one of the priority sub-sectors in Burundi.

The delegate from the EAC Secretariat concurred with presentations on regional policy review, saying that

there is limited coherence across agro-processing, climate change, food security and trade at the regional

level. However, the speaker encouraged participants by stating that industry is once again a priority issue in

the region and it is being mentioned in policy documents related to trade and environment, which implies

‘no going back as a region when it comes to industry’.

A couple of questions were raised to presenters. A participant wanted to find out if services supporting AI

were being considered in policy documents to which the first presenter responded that strategic

interventions of many of the policy documents mention the need to fill ‘capacity and skill’, which also

include such supports including resources and packaging.


SESSION 3

MULTILATERAL NEGOTIATIONS OUTCOMES FROM WTO NAIROBI MINISTERIAL CONFERENCE AND UNFCCC PARIS AGREEMENT: WHAT ARE THE NEXT STEPS?


THE MAIN OUTCOMES FROM WTO NAIROBI MINISTERIAL CONFERENCE RABSON WANJALA, SECOND COUNSELLOR, PERMANENT MISSION OF KENYA, GENEVA

Geneva Preparatory Process for WTO MC10

On Geneva preparation, he informed of the appointment of three ambassadors (Colombia, Kenya and

Norway) in October 2015 to act as facilitators in consulting Members on the Ministerial Declaration with

responsibilities including consultations and collecting views from the Members on the structure and

possible elements for the Ministerial Declaration, as well as the process that should be followed to arrive at

a consensual Declaration. Based on the facilitators’ report, Members agreed on 3rd November 2015 to start

working on the declaration for the 10th WTO Ministerial Conference on the basis of three-part structure: (i)

Part I on introductory language/preamble stressing the importance of the WTO multilateral trading system

and its achievements; (ii) Part II on the deliverables for Nairobi including both the outcomes in the

Negotiating Groups on the Doha Development Agenda (DDA) and the regular WTO bodies; and (iii) Part III

on the future of the WTO – Post-Nairobi Agenda. Under Part II, Negotiations on the substantive

deliverables on outstanding DDA issues for Nairobi continued under negotiating groups on basis of a

limited package which included Export Competition in agriculture, Special Safeguard Mechanism, Public

Stockholding for Food Security Purposes, Transparency issues in a number of WTO areas, Special and

Differential Treatment, LDC issues, regular work under the General Council including TRIPS, Non-

violation and situation complaints, E-Commerce and work programme on small economies.

Outcome of the Geneva Process

On the outcome of the Geneva Process, he informed of the consolidated text of proposals prepared and

circulated by the facilitators which reflected different positions of different Members and Groups which

through further discussions were narrowed to convergence on a number of issues with sharp differences

remaining on the re-affirmation of Doha declarations, mandated and related General Council decisions and

the new issues – Singapore issues and emerging issues. On the Doha Development Agenda, he informed

of the following outcomes: (i) Agriculture: there was convergence that Export competition was the only

deliverable for Nairobi whereas domestic support and market access were to be discussed post-Nairobi; (ii)

Special Safeguard Mechanism (SSM): convergence was not possible in the absence of a broader

outcome on agricultural market access; (iii) Public stockholding for food security: there was no

consensus on a permanent solution but he informed of the new deadline for a permanent solution set for

2017; (iv) Cotton: he informed of a proposal by Benin, Burkina Faso, Chad and Mali submitted on

domestic support, market access and export competition in cotton and the ensuing convergence that an

outcome on export competition would also apply to cotton. He mentioned the argument by some Members

that outcome on domestic support and market access in cotton was not possible without a broader

agreement in agriculture negotiations on these two pillars; (v) LDC issues: He informed on the lack of

consensus regarding issues of Duty Free Quota Free (DFQF) market access, and on increasing the scope

beyond 97% tariff lines and making it legally binding. Other issues mentioned included the broad non-

binding guidelines that were not acceptable to LDCs regarding the Preferential Rules of Origin and the

concern by LDCs that their recommendations were not being taken into account in regard to the

Implementation of LDCs services waiver and the general lack of consensus on LDCs issues. He also

informed on the lack of consensus on the transparency issues with regard to domestic regulation in

services and WTO Rules (anti-dumping and Regional Trade Agreements), but with some convergence but

no consensus on fisheries subsidies. (vi) Special and Differential Treatment: he informed of 25

proposals submitted by the ACP, LDCs & African Group out of which revision prioritized 15 proposals for a

decision in Nairobi; (vii) Regular work: Regarding the Regular work of the General Council, he informed of

the adoption by the TRIPS Council of the decision on the extension of the transition period for LDCs with

respect to certain obligation to pharmaceutical products and that there was convergence on issues of E-

commerce, and Small Economies and TRIPS-Non-violation Complaints.


Outcomes from the 10th WTO Ministerial Conference

Mr. Rabson Wanjala informed of a number of agriculture decisions made during the 10th Ministerial

Conference in Nairobi, including decisions on Export Competition in which the final text is now much less

ambitious than what the EAC region had expected in all the four elements – export subsidies, export

credits, state trading enterprises and international food aid. According to him, the EAC countries’ position

was the elimination of all forms of export subsidies taking into account problems faced by the LDC, NFIDCs

as well as special and differential treatment for developing countries. On export subsidies, the outcome text

was the immediate elimination of export subsidies by developed countries while developing countries’

elimination of exports subsidies was set for end of 2018. The elimination of export subsidies is meant to

favour EAC exporters since it is likely to lead to favourable world prices in agriculture products while

protecting the interests of LDCs and NFIDCs who are to benefit from the provision of article 9.4 until 2030.

On export credits, he informed of the text providing for a repayment period of 18 months with a phased in

implementation period of 4 years for developing countries and special and differential treatment for LDCs

and NFIDCs comprising of repayment term ranging between 36 and 54 months with the possibility of

extension for acquisition of basic foodstuffs. In this case, the EAC will have a longer repayment term for

export financing.

On the issue of Agricultural Exporting State Trading Enterprises, he informed of the revised text in

Para 21 which now states that “Members shall make their best efforts to ensure that the use of export

monopoly powers by agricultural state trading enterprise is exercised in a manner that minimizes trade

distorting effects and does not result in disciplining or impeding the exports of another Member”. On the

issue of International Food Aid, he mentioned that the disciplines were largely weakened to address the

concerns of the US as the decision excluded demand to impose a numerical ceiling on the amount of

monetization of food aid. However the decision allows monetization of food aid only in cases where it has

been demonstrated that it is needed for the purpose of transport and delivery and that members will then

refrain from providing in-kind food aid in situations where it is likely to disrupt local or regional production.

He informed of the lack of substantive outcome on the issue of Public stockholding for food security as

it only re-affirmed the November 2014 decision. He mentioned that the interim mechanism is only limited to

countries that have public stockholding programmes already in place whereas the EAC countries are

disadvantaged since they have no such programmes. On the same issue, it was decided that the

negotiations for a permanent solution should be held in dedicated sessions of the agricultural committee.

On the issue of Special Safeguard Mechanism (SSM), he informed that the decision call upon Members

to pursue negotiations for a Special Safeguard Mechanism for developing country Members in dedicated

sessions of the Committee on Agriculture in Special Sessions while the General Council will review

progress regularly. On the cotton issue, the decision was that both developed and developing country

members in a position to do so, to provide DFQF market access for least developed country cotton exports

from January 2016 and that a dedicated session to be held to discuss among others market access issues

for cotton-producing LDCs and elimination of export subsidies on cotton. The decision promotes the

production and export by the EAC cotton-producing countries. Generally there was no concrete

action/outcome on domestic support. He informed of LDC’s specific decisions, lamenting the non-binding

language on rules of origin applying to preferential schemes for LDCs while for the services waiver, he

informed of an extension until 2030 and that members were urged to re-double their efforts and notify

preferences of commercial value, members to address regulatory barriers facing LDCs services exports

and address technical assistance and capacity building issues.

Post Nairobi Agenda

Regarding the post-Nairobi Agenda, he mentioned that the Ministerial Declaration recognized the two

extreme positions on the future of the DDA: “We recognize that many Members reaffirm the Doha

Development Agenda, […], and reaffirm their full commitment to conclude the DDA on that basis. Other

Members do not reaffirm the Doha mandates, as they believe new approaches are necessary […].” He

nevertheless indicated that there still remains strong commitment to advance negotiations on the remaining

DDA issues while maintaining development at the centre of negotiations, and highlighted the re-affirmation

of S&D provisions as an integral part of the negotiations. He reiterated that officials should find ways to


advance the negotiations and that the Director General will report regularly to the General Council on these

efforts, prioritize work where results have not yet been achieved and the need to recognize that some

members wish to identify and discuss other issues for negotiations while others do not and that any

decision to launch negotiations multilaterally on “new issues” would have to be agreed by all Members.

THE MAIN OUTCOMES FROM UNFCCC PARIS AGREEMENT: WHAT ARE THE NEXT STEPS? PRESENTATION BY RENILDE NDAYISHIMIYE, DIRECTOR GENERAL OF GEOGRAPHIC INSTITUTE OF BURUNDI (IGEBU), AND UNFCCC FOCAL POINT FOR BURUNDI

In her introductory remarks, Renilde recalled the international consensus that climate change is a reality a

global problem requiring concerted international efforts to address its causes, adapt and build resilience.

Africa is the most vulnerable continent to the adverse impacts of climate change owing to its position on the

globe which exposes it to a warm climate and erratic rainfall, prevalence of poor soils and flood plains, and

that most economies in Africa are dependent on sectors such as agriculture that are susceptible to climate

variations. As a result, the continent has low adaptive capacity with high poverty levels, low capacities, and

conflict. She pointed out that the Paris Agreement is the first comprehensive and universal agreement

under the UNFCCC to be adopted.

Outcomes of COP 21

She noted that among the key outcomes of COP 21 is the enhancement of action prior to 2020 which is

depicted in the implementation process of the existing commitments, ratification of Doha amendment to the

Kyoto Protocol, the commitment by developing countries to submit the first Biennial Update Report (BUR)

soonest, the ongoing technical examination process on mitigation, enhanced provision of urgent and

adequate finance, technology and capacity building efforts to support implementation, the ratification of

Lima – Paris Action Agenda aimed at strengthening climate action now and beyond the Paris COP 21

conference in December by taking robust global action towards low-carbon, climate-resilient societies;

encouraging action and commitments by non-state actors and provision of enhanced support to existing

initiatives such as those launched during the UN Secretary General’s climate summit in September 2014;

and mobilization of new partners and provision of platform for the visibility of their actions; commitments

and results in the run up to COP21 and increased high level engagements - high level champions and

technical examination process on adaptation.

She emphasised on the adoption of the Paris Agreement by 195 countries as a major outcome – being the

first-ever universal, legally binding global climate deal which sets out a global action plan to put the world

on track to avoid dangerous climate change by limiting global warming to well below 2°C and to further

strengthen to 1.5 degrees above pre-industrial levels. She noted that the agreement is due to enter into

force in 2020 and will be the bridge between today's policies and climate-neutrality before the end of the

century and that it is expected to increase the ability to adapt to the adverse impacts of climate change and

foster climate resilience and low greenhouse gas emissions development as well as make finance flows

consistent with the pathway.

She delved on the newly adopted Paris Agreement outlining a number of intended nationally determined

contributions (INDCs) for mitigating the impact of climate change including peaking of global greenhouse

gases (GHGs) emissions as soon as possible. She informed that the INDCs before COP22 obligations

involve a regular 5 years preparation, communication and maintenance of nationally determined

contributions and continuation of domestic measures to achieve the NDC (with transparency) progression

with the highest possible ambition and that developed country parties will take the lead and offer support for

developing countries.

She noted that Paris Agreement provides for the Global goal on adaptation for enhancing adaptive

capacity, strengthening resilience and reducing vulnerability to climate change and that it recognises

adaptation as a global responsibility and makes it mandatory for adaptation efforts of developing country

parties to be recognized & supported. She pointed that the agreement now provides a link between


adaptation –mitigation and costs with principle being of – country driven, gender responsive, participatory,

vulnerable groups and science/indigenous knowledge.

She mentioned that the agreement provides an enabling mechanism (REDD+ Mechanism) where parties

agree to take action to conserve and enhance as appropriate the reservoir of greenhouse gases including

forests, result based payment linked to financial mechanism, cooperative approaches mechanism for the

markets, Warsaw international mechanism for loss and damage associated with climate change and

compliance mechanism. She informed of the provision for means of implementation in relation to finances,

technology development and transfer, together with capacity-building. On the finances, she mentioned the

provision for developed countries to provide financial resources to developing countries while also

encouraging others to provide voluntary support with mobilization from wide range of sources while

developed countries taking lead role together with public sources. On technology development and

transfer, she mentioned the key long term vision of the agreement including climate change and economic

growth and the need to strengthen cooperative action on technical development and transfer. She also

noted the provisions of capacity building as country driven which should be responsive to the national

needs and that support is to be provided to developing countries with special circumstances of LDCs/SIDs

and the provisions for enhanced climate change education, training, public participation and access to

information.

She mentioned the provision on transparency of actions and support framework established with flexibility

for developing countries purposely to provide a clear understanding of climate change actions including

tracking of progress on NDCs, adaptation action, and support provided and received and that each party is

expected to provide a clear understanding of climate change actions while making regular provision on

their national greenhouse gases inventory report, technical expert reviews and information on the support

for the implementation of transparency for developing countries.

The next steps beyond COP 21

In moving forward, she mentioned that Paris Agreement is open for signature from 22nd April 2016- 21st

April, 2017 and that UN Secretary General will be convening a high level signature ceremony on 22nd

April, 2016 and that all parties are expected to sign and ratify soonest. She informed of the Ad-hoc working

group on the Paris Agreement which is expected to oversee implementation of the work programme and

prepare for its entry into force.

For countries with special developmental problems, such as access to domestic and industrial energy (as is

the case in the EAC), she informed that the key interest has been to ensure adequate space in terms of

energy transformation to support development needs and that EAC/Africa is a huge landmass which

experiences temperature increases that are above the global average increases hence amplifies impacts

from increased variability and a changing climate. She reiterated that variability can be devastating as the

‘receiving environment’ is characterised by low adaptive capacity due to poverty and natural resource

dependent economic sectors and that the global climate agreement therefore has significant implications

for development in Africa.

She concluded by mentioning that the implementation of the Paris agreement will therefore require

mobilization of Agriculture private investment at national and regional level, strengthening of the

communication in the sector of agri-business, promoting the insurance in agriculture sector, and invitation

of non-state actor’s to scale up their efforts in the fight against climate change. She pointed out that under

Article 9.1, developed country parties shall provide financial resources to assist developing country parties

with respect to both mitigation and adaptation in continuation of their existing obligations under the

convention while Article 9.3 commit developed countries to provide financial resources to developing

countries, linked to developing countries’ needs and priorities.


PLENARY DISCUSSION

During the ensuing discussions, the bulk of the debate focused on the WTO Nairobi package where

divergent views were expressed regarding the value of the agreement for EAC countries. According to

some participants, the Nairobi outcome was both important and historic in that the Doha round was given a

new lease of life with all pending issues remaining on the table, despite the desperate mood at the

beginning of the event. Other participants involved in the ministerial negotiations lamented the lack of

inclusiveness in the process that led to the outcome, which sets a bad precedence. A key lesson identified

for the future was the need for Geneva delegates to agree on an almost final draft before the start of the

conference.


SESSION 4

IDENTIFYING KNOWLEDGE GAPS SCOPE & CONTENT OF PACT EAC2 RESEARCH STUDIES


The main objective of the session was to commence the process of developing terms of reference

for the national research studies to be undertaken under PACT EAC2 project. The studies will aim

to inter alia identify gaps and/or contradictions in the various policy documents that deal with

development of the agro-processing industry with relation to climate change, food security, and

trade linkages; as well as highlighting the ideal sectors to promote, while taking into account

gender perspectives, smallholder farmers, and the marginalized communities.

The Session was chaired by Mr. Aziz Elbehri, Senior Economist, Trade and Markets Division at the Food

and Agriculture Organization (FAO). It commenced with a presentation by CUTS International that

contextualized the research objectives, after which participants broke out into country groups to brainstorm

on what the main elements for the respective EAC national studies should entail. Thereafter, each group

through a representative presented a summary of the brain storming exercise during in a plenary.

All in all a number of important issues were identified and these will be the basis for further deliberations by

stakeholders in the forthcoming national reference group meetings, which will be held in each of the EAC

countries. After these meetings the terms of reference for the national studies will be finalized and

research will commence.


CLOSING

CLOSING SESSION The meeting closed in the afternoon of 1 March on a high note with a concluding session chaired

by H.E. Mrs Flavia Nabugere Munaaba, Minister of State for Environment, Uganda. In addition to her

remarks, the session also heard concluding statements by H.E. Mr Chrostopher Onyanga Aparr,

ambassador of Uganda to the UN, WTO and Other International Organisations in Geneva, Eng.

Jennifer Gache, representative of the EAC Secretariat, and Clement Onyango, Director CUTS

Nairobi.


SPEAKER H.E. MRS FLAVIA NABUGERE MUNAABA, MINISTER OF STATE FOR ENVIRONMENT, UGANDA

H.E. Mrs Flavia Nabugere Munaaba, Minister of State for Environment, Uganda in her concluding speech

recalled her long association with the project, starting from her participation in the first Regional Annual

Meeting under PACT EAC1 in Kigali, Rwanda, in 2012. He was very pleased to see that the phase two of

the project has been successfully launched and particularly thanked Sida for its continuing funding support.

While reflecting on the two-day deliberations at the Project Inception Meeting, she acknowledged that a

number of thoughts and reflections had been presented which will be helpful in the effective implementation

of the project. She noted that the project focus was on policies while some participants brought forward

ideas for small-scale projects at the grassroots level. Both these were complimentary and the project could

assist the identification and implementation of the small grassroots projects by promoting and

strengthening a right and coherent policy framework at the national, regional and international levels.

She congratulated the participants for their active participation and thanked CUTS for launching PACT

EAC2 in a befitting manner and for organising an excellent Project Inception Meeting. In the end, she

assured her continued commitment and engagement with PACT EAC2.

SPEAKER H.E. MR CHRISTOPHER ONYANGA APARR, AMBASSADOR AND PERMANENT REPRESENTATIVE OF UGANDA TO THE UN, WTO AND OTHER INTERNATIONAL ORGANISATIONS IN GENEVA

H.E. Mr Aparr started by thanking the organisers for making very good arrangements and for the kind

hospitality extended to out-of-country participants by the local hosts, the Economic and Social Research

Foundation (ESRF) Tanzania.

He was convinced that PACT EAC2 was a timely and much-needed initiative in view of the trade, food

security, climate change challenges faced by the EAC that is aiming to achieve development and povery

reduction through agro-industrialisation. He particularly referred to the relevant international negotiations,

for example under the WTO that can have important implications for the region. Similarly, the climate

change negotiations and expected actions under the UNFCCC must be closely monitored. EAC countries

must prepare thoroughly and participate actively in these negotiations so safeguard their interests. While

referring to the limited capacities of EAC countries in this respect, he was confident that PACT EAC will

assist EAC trade and climate change negotiators, building on the excellent capacity building of WTO

negotiators under PACT EAC1.

He assured the participants of his support in the implementation of the project and urged them to take full

advantage of the opportunities that the project offers.

SPEAKER ENG. JENNIFER GACHE, SENIOR INDUSTRIAL ENGINEER, ON BEHALF OF HON JESCA ERIYO, DEPUTY SECRETARY GENERAL PRODUCTIVE AND SOCIAL SECTOR

Eng. Gache delivered closing remarks and reflections on behalf of Hon Jesca Eriyo, Deputy Secretary

General of the EAC Secretariat. She gave a summary of the points discussed in the two-day meeting

including:

The linkage of agro-sector to employment and job creation with 70-90 % of EAC population relying

on the sector;


The importance of linkage of agro-processing to industry in the EAC whereby 80% of total

manufacturing is agro-based;

Importance of linkage of agriculture to trade with majority of commodities being traded regionally

and globally comprising agro-products; yet the region mainly relies on rain fed agriculture by

smallholder farmers

Discussion of both the negative and positive impacts of agro-sector on climate change;

Updates and outcomes from two very important and highly visible initiatives at the global level: (i)

The main outcomes from WTO Nairobi Ministerial Conference and its influence on our region. We

are looking forward to progress on the ongoing work in that area; and from our ambassadors, we

will be looking forward to their guidance on areas in which the region has comparative advantage

in the export markets and areas that can be exploited; and (ii) The UNFCC Paris Agreement; and

we look forward to the region leveraging the benefits it can accrue from the agreement in terms of

funding opportunities and other benefits, given that our contribution to climate damage is marginal

The meeting also established that a number of policies in agriculture and food security, agro-

industry, climate change and trade exist and indeed these sectors are priorities of regional and

national governments but what could be lacking is the policy coherence among all these policies.

This then is where the PACT-EAC 2 Project led by CUTS International Geneva, in collaboration

with CUTS ARC Nairobi, aims to build the regional capacity of individuals, networks, institutions to

identify appropriate policies for climate trade oriented, food security enhancing agro value addition

in the EAC region.

She then outlined the feedback through plenary discussions from participants to the many issues to be

addressed under the project. This included:

Need to involve all the stakeholders in the research including micro, small and medium

enterprises;

Involvement of gender and emphasis on gender friendly policies;

Need for usage of unique methodological approaches and knowledge management with clear

results indicators;

Innovative training programme that will address policy issues but also address the specific needs

of the SMEs;

Ways to build a network of stakeholders for constant information exchange;

Promotion of market business models;

Identification of products with high demand for local, regional and global markets and negotiation of

the markets and enhancing market access;

Climate SMART agriculture and resource-efficient and cleaner production; and

Putting in place communication strategies.

She affirmed that agro industry is a top sector in EAC policy documents due to its impact on the lives of the

East Africans. EAC countries Heads of States are keen to revive the textiles and footwear sector in the

region and if the project allows, EAC Secretariat would be most pleased to collaborate with CUTS

International in the development of research papers and policies & briefs aimed at promoting development /

trade and impact of second hand clothing in the region. EAC Secretariat is also keen to work on the leather

and leather products sector and on issues affecting livestock husbandry some of which are environmentally

and climate change linked.

Finally, she was happy to note that the Project Inception Meeting had achieved its objectives of presenting

PACT EAC2 to the stakeholders; assessing the current state of policy in EAC; and kicking off the process


of identification of policy and capacity gaps related to the identified sectors. She reiterated the support of

the EAC Secretariat to PACT EAC2.

SPEAKER CLEMENT ONYANGO, DIRECTOR CUTS NAIROBI

Mr Clement Onyango, Director CUTS Nairobi was the final speaker. He took the opportunity to reflect upon

the content and of the discussions in the two-day meeting which were rich and wide-ranging. A number of

presentations on various issues had been made by experts and the participants asked many questions as

well as contributed their own thoughts and comments on the issues. The debates and discussions were

open and lively and helped the participants better understand the issue at hand. This clearly brought

forward the timeliness of the project as well as the capacity building needs of relevant EAC stakeholders for

climate-aware, trade-driven and food security-enhancing agro-processing development for East Africa.

He thanked all the participants, including chairs, speakers, Geneva delegates, and national, regional and

international representatives. He was particularly grateful to the local host, ESRF, for its good management

of the event and kind hospitality. Finally, he thanked by name all the staff of CUTS Geneva and Nairobi

who had worked tirelessly to ensure that the PACT EAC2 Project Inception Meeting achieves its objectives.

After these statements, H.E. Mrs Flavia Nabugere Munaaba, Minister of State for Environment, Uganda,

wishes all participants safe return travels and declared the meeting closed.

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