NEW YORK, 15 April 2010: A new UNCTAD/Government of Rwanda study provides a framework for the country’s first-ever trade policy, as part of its development plan and poverty reduction strategy. The study also addresses the structural weaknesses of Rwanda’s trade activities.
The study, entitled Rwanda’s development-driven trade policy framework, was prepared by UNCTAD and the Ministry of Trade and Industry of Rwanda.
It provides an in-depth analysis of Rwanda’s regional and international trade performance under various trade agreements, existing trade policy instruments and related sectoral policies as well as institutional and human capabilities.
It emphasizes that the linkage between trade and development in Rwanda can be strengthened by establishing a robust and competitive productive base geared to serving the national, regional, continental and international markets. Such an approach would also enhance the resilience of the economy to external economic shocks, an imperative in the light of the adverse impact of the global financial and economic crisis on Rwanda.
The study was discussed and validated at a stakeholder workshop in Kigali on 16 June 2009.
It proposes that the trade policy be guided by a vision statement, consistent with Rwanda’s Vision 2020 and the Economic Development and Poverty Reduction Strategy, which is to establish a development-driven trade environment in which sustainable productive and competitive exports flourish and expand, contributing to economic development, poverty reduction and improved living standards, especially for the rural poor, including women. The study examined seven key building blocks for such an approach, namely:
Increased productivity, competitiveness and diversified sustainable productive capacities for trading nationally, subregionally, regionally and internationally;
Enhanced participation of importers and exporters of goods and services in regional and international trade, taking advantage of trade opportunities, with special attention to supporting women farmers and entrepreneurs as well as rural-based exporters;
Improved environment for investment, including FDI, in the production of competitive goods and services for the export market;
Improved prospects for economically viable industries that also protect and promote the environment, especially sustainable agriculture development;
Increased human resources skills in trade and development through training and retraining in private and public institutions;
Strengthened science, technology and innovation policies, strategies and institutions, including intellectual property laws, in support of industrial development and creative knowledge-based industries; and
Effective mainstreaming of social aspects of development in trade and development activities.
