African Countries and the Challenges of Trade Remedy Mechanisms within the WTO

Abstract

Trade remedies (anti-dumping, countervailing, and safeguards) are important trade policy instruments for the mitigation of the negative effects of globalisation and international trade liberalisation, and for industrial development. Yet, the vast majority of African countries are poorly equipped to use them (and actually do not use them). Only four countries on the continent – Egypt, Morocco, South Africa and Tunisia – have modern functional trade remedy mechanisms, though several other African countries are in the process of setting up ones. This paper assesses the experiences and identifies the constraints that African countries (the small ones in particular) face in the area of trade remedies. Moreover, it proposes some solutions, including regional approaches and ad hoc trade remedy investigating bodies, to overcome these constraints. The main argument is that trade remedies are important and needed in Africa, both from development economics perspective and also for transparency and good governance in the area of foreign trade policy.