Not only has Africa remained commodity dependent, but it has fallen behind other developing regions of the world in exports of non fuel primary commodities.

How can measures to increase commodity price stability and returns from commodity exports contribute to achieving the Millennium Development Goals?

(v) systematically link debt repayment and debt servicing by commodity dependent developing countries to adverse movements in prices of commodity exports and imports

Thus, steel products as a group were less dynamic than world exports but slightly more dynamic than commodities.

Commodity exporters that have benefited from recent increases in prices and export volumes must maintain their efforts to diversify their commodity sector, as well as to generate higher value added in other sectors.

Commodities

(c) Innovative instruments to improve the export possibilities for commodities produced in a sustainable way, especially from LDCs.

The least developed countries needed to produce more exportable goods, including not merely primary commodities but also manufactured goods, and consequently they must foster diversification.

As globalization proceeds, however,dynamic exporters have been taking over the market shares of weaker commodity exporters in world markets.

Commodity conferences 3 As required up to

SERVICES, AND COMMODITIES

Direct and indirect measures to reduce dependence on commodity exports and to reduce the impact of commodity price instability are thus crucial if Africa is to meet the Millennium Development Goals.

Between 1985 and 1996, the basket of goods exported increased markedly, and there was a clear switch in exports from commodity based products to products with high added value.

32 In 2002, of 49 least developed countries, 31 were exporters of primary commodities and only 18 were exporters of manufactured goods or services.

Participants frequently discussed the implications of developing countries' heavy dependence on primary commodity exports.

Further, studies suggest that owing to concentration in the structure of international commodity markets, commodity producers are less likely to benefit from increases in international commodity prices at the wholesale and retail levels.

Commission on Trade in Goods and Services, and Commodities

Expert Meeting on Dynamic

Expert Meeting on Methodologies, Classifications, Quantification

Commission on Trade in Goods and Services,

Commission on International Trade in Goods and Services, and Commodities

and Services, and Commodities

COMMISSION ON TRADE IN GOODS AND SERVICES, AND COMMODITIES

Commission on Trade in Goods and Services, and Commodities

In a context of rapid liberalization, declining shares of manufacturing employment and output and a downgrading to less technology intensive activities were common trends Commodity dependent exporters Many poorer economies, particularly in sub Saharan Africa, remained heavily dependent on one or two commodity exports.

Helping these countries to develop and diversify their commodities and exports, as well as allowing them to export products with high value added, would contribute to the efforts made to protect the environment.

Africa s exports remain narrowly based on primary commodities, and little progress has been made in diversifying into non traditional exports, especially manufactures.

At the same time Africa apos s commodity exports remained stagnant and their real value had fallen by 50 per cent.

(a) Major agricultural food and commodities

International trade in goods and services and commodities

The dynamism of a given commodity can be measured by different indicators such as the growth of world export value or the growth of its share in world commodities exports compared to those of other commodities of the same group (in the case of steel minerals and metals ).

COMMISSION ON TRADE IN GOODS AND SERVICES, 6 8 November

COMMISSION ON TRADE IN GOODS AND SERVICES, AND COMMODITIES

C.1 Commission on Trade in Goods and Services, and Commodities.

Since most African countries depend on from two to three main primary commodity exports for the bulk of their foreign exchange earnings, their external performance and external indebtedness are directly influenced by short term instability of primary commodity prices.

Item 3 Commodities and development

Declining importance of primary commodities

29. The major markets for most primary commodities remained the developed countries, which account for about 70 per cent of global world imports of commodities.

Commission on Trade in Goods and Services, and Commodities

C 1 Commission on Trade in Goods and Services, and Commodities

4. It was strongly felt that those commodity markets (e.g. foods) that were dynamic and provided export opportunities for commodity exporters were, in several instances, those where various types of trade barriers (escalation, peak tariffs) and sanitary and phytosanitary (SPS) measures were rendering market access complicated.

Since Africa is where most commodity dependent countries are located, work in this area is of primary importance for the continent.

Expert Meeting of the Commission on Trade in Goods 4 6 May and Services, and Commodities

32. Export promotion policies in SSA have been largely confined to primary commodities, which have collectively proved vulnerable during the past 15 years to the fallacy of composition dilemma.

13. Recent price declines, some of them very pronounced, were observed for many commodities, which altogether accounted for about one third of non oil primary exports of the developing countries.