• There is an apparent lack of underlying economic complementarities, especially given the dependence on natural resource exports.

• The ECA region comprises diverse geographies and spatial patterns, giving rise to the possibility that the benefits of regional integration will not be shared equally among countries and sub-regions, particularly those that are land-locked and/or lack strong manufacturing bases.

• There is an over-riding need for any regional integration scheme to be WTO-compliant ("open regionalism"), as most attempts at regional integration have failed to result in real benefits, especially South-South FTAs. There is a need to ensure that any such schemes are trade creating, not diverting.

• Any attempt at regional integration has costs and benefits-and these accrue to different countries differently - how do you balance them? Is there is a need for compensation mechanisms?

• There is a need to catalyze political will and have schemes with teeth - the COMESA and EAC Secretariats presently have little or no real power. Implementation ultimately rests with its country members.

All of this does not mean that regional integration should be abandoned in favor of strictly multilateral WTO-mandated liberalization. Indeed, open regional integration is a good policy tool for increasing competitiveness and growth, as well as for increasing food security and sharing the benefits of globalization.

Mindful of the realities of the regional trade picture, and of the fundamentals required for a competitive and integrated ECA marketplace, the Hub is tailoring its approach to regional implementation realities. The goals of the Hub's trade policy assistance under the program will be to increase regional trade liberalization and levels, understanding of and participation in the WTO and COMESA, and overall food security through trade.

The trade policy capacity building program rests upon both a detailed advance needs assessment, involving stakeholder consultations and input. The feasibility of our approach to achieving the objectives and specific milestones under this program component is based on the following key principles:

• Effective policy formulation and implementation can only be achieved through ownership. Our regional trade and integration program is designed to achieve the aspirations of regional governments and multinational bodies, in the context of regional integration and trade arrangements and institutions, and not to second-guess them. We seek to assist the cooperating country stakeholders in finding their own voice or positions to achieve their trade policy aspirations.

• An integrated, demand-driven approach to trade policy liberalization is required to reconcile competing policy agendas in ECA region. At its core, the Hub's main purpose is to accelerate economic growth through regional and global integration and export-led growth. The different objectives and mandates of the region's various trade agreements and WTO commitments require an integrated approach to maximize trade creation and minimize diversion and triangulation.

Building Capacity to Participate Effectively in Multilateral Trade Deliberations and Negotiations. Following an assessment to determine priority areas for technical assistance and training, a Training Action Plan will be developed and submitted to counterparts.

A range of courses, seminars and workshops will then be developed and implemented, being made available to participants from at least 4-5 ECA countries per year. The following are programs that will be adapted to meet the region's needs:

• Trade Agreements. Two 2-week courses will be conducted each year to provide an introduction to the international trading system for policymakers. The courses may cover a range of issues, including the establishment of the WTO and the basic principles of international trade, the WTO Agreements, Special and Differential Treatment for Developing Countries, regional arrangements (such as COMESA and the EAC), and preferential arrangements (such as AGOA). Other specialized courses, lasting from 3 to 5 days each, will be offered on topics of particular relevance to specific groups. For example, specialized training would be provided to Customs officials and customs brokers, as well as others involved in or affected by customs matters, on the WTO Agreements on Customs Valuation, Rules of Origin, and Pre-Shipment Inspection, as well as WCO customs classification principles. In this case, such courses would be closely coordinated with the activities under Component 3.

• An integrated, demand-driven approach to trade policy liberalization is required to reconcile competing policy agendas in ECA region. At its core, the Hub's main purpose is to accelerate economic growth through regional and global integration and export-led growth. The different objectives and mandates of the region's various trade agreements and WTO commitments require an integrated approach to maximize trade creation and minimize diversion and triangulation.

• Simulated Trade Negotiations. A two-week simulation course on trade negotiating techniques (and WTO and COMESA negotiation rules of conduct) will provide participants the opportunity to represent fictitious countries in the negotiation of tariff, investment, and services agreements. This course will be offered to officials of the Trade and other Ministries, such as Agriculture, who may be involved in trade negotiations.

Supporting Trade Policy Formulation and Implementation. The Hub will assist in trade policy analysis, formulation (including assistance in drafting implementation protocols), and implementation (including through coalition building, stakeholder consultations, and inter-agency coordination and communications). The following are programs that will be adapted to meet the region's needs:

• On the global multilateral trade liberalization level, we will assist countries in formulating joint and/or independent negotiating agendas and positions. We will work to support multilateral rules that would work to the advantage of the region, such as "geographic designations" in the context of East African fine coffees. We will also provide advice and assistance in analyzing the benefits of ratifying "WTO+" voluntary agreements (such as the Information Technology Agreement) to interested countries.

• To promote an enabling regional trade environment for ECA businesses, we will provide assistance in formulating trade-enabling policies for review at the earliest possible COMESA Ministerial, for example promoting harmonized, WTO-compliant production quality and SPS standards in COMESA. We will aggressively target at least two trade-enabling policies per year, with a view to seeing Protocols developed, signed and ratified, and implemented through enabling legislation in a majority of ECA AGCIHub countries.

To better reconcile the disparate imperatives of multilateral and regional trade liberalization, we will provide advice on the COMESA CET ensuring that is set at a rate and implemented in such a manner as not to work against the region's multilateral trade liberalization interests.

Assist in promoting regional business linkages. We will assist the private sector to build linkages to trade regionally and internationally through support to business associations in the development and provision of market information, developing regional trade networks in all ECA countries, providing export-related business development services, and organizing trade missions to large intra-regional importer countries (e.g., Tanzania, Comoros, Uganda, the DRC, and the Great Lakes States).