The Importance of International Trade & Investment Treaties for Mozambique

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August 2007

role of contracts in the promotion of trade and investment

international agreements are now more than before, playing an important role in international trade . We rapidly developing communication systems and technology, and the phenomenon of globalization of the economy affects all aspects of modern business, business between the two countries on all continents become more complex and intricate. With this new 21st century, trade and foreign investment transactions as well as capital flows have reached unprecedented levels. More complex are the business activities, the higher is the number of rules and agreements adopted for secure management and equitable governance of the global market.

It is estimated that there are now more than 50,000 international agreements. About 600 of these agreements apply only to multilateral trade issues. There are 210 major treaties paramount for the promotion of trade and investment, which covers issues of highest concern in international trade, such as international agreements, investment, intellectual property, illegal trade, customs, finance, transport, environment and products, dispute resolution, contract law and WTO Agreements. According to a recent study published in the ITC, do all of these agreements have not the same translation for commerce and their effects can significantly affect the business interest in the country in accordance with their interests Focus.

The importance of international treaties to the private sector

case about the importance of international agreements and their impact on the performance of the private sector is of great concern for the least developed countries. Experts generally agree to say that effective international agreements are very important because they can facilitate safer between the state of relations, reducing the problems of conflict between states, strengthen international cooperation and understanding between states, and most of all, to promote the international rule of law. Trade agreements such as the WTO Agreements and the UN multilateral agreements are shaping the way business is conducted. Acceptance of this agreement sends a signal to international investors and business operators as the country is serious about creating a safe atmosphere for business.

Selection of the agreements to be ratified and effective implementation can make a difference in terms of economic development due to higher business confidence and awareness within the industry to this area. Many least developed countries such as Mozambique stop being victims of economic stagnation because they do not accept the major existing contracts, and not conducive to new. Faced with complex rules in numerous trade and investment agreements, these countries often do not know where to focus special interest or focus their limited resources.

Current issue of ratification and implementation of agreements on Mozambique

Considering the specific case of Mozambique, there are only 42 contracts ratified 210 considered by the ITC that matter most to business promotion and pay. Thus, in terms of number of instruments ratified, Mozambique is ranked global no. 154 (of 192 countries in the world), and at the regional level, no. 35 (of 47 countries in Africa). In terms of land ratification level, Mozambique scored 24.83 (out of 100), less than the average in Africa (26.26) and the world average (33.87). The meaning of these numbers simply puts Mozambique among the least performing countries in the world and in Africa in terms of international trade and investment facilitation.

assessment of the current status of ratification of the contracts reveals that it is usually limited awareness of the importance of international treaties and their impact on the development of the private sector. While capacity building activities are very limited, there is no strategic approach developed to identify interesting contracts, and there is no system for monitoring and evaluation of the agreements ratified or ratified.

point is “how can Mozambique participate more in making new rules of business and most of all, involve stakeholders, including private operators sector?” Many government departments have the ability to make and sign contracts, but it does not a consolidation or coordination mechanisms at the level of foreign minister or the Assembly of the Republic (Parliament). There are clearly some gaps and inconsistencies in the implementation of the system, including the weakness of the judicial system level when there is a need to uphold the fundamental rights protected by international treaties.

way forward

In order to draw the best benefits from the potential effects of compact shape development in Mozambique, it is advisable to go beyond routine construction and management contracts. It is also important to build a positive image of Mozambique as a business and investment destination. The global distribution of information on national policy could be a valuable exercise. A case in point is the cover article published by journalist Joshua Kurlantzick in the New York Times (May 19, 2005) under the title: “Mozambique … Bringing the star of Africa” ​​was a great opportunity. There are now various projects in tourism in Mozambique, we hope, will strengthen this initiative

opening new frontiers in treaty law for business, investment and technology, promote better cooperation opportunities. spotting and transforming into concrete benefits potential trade of prime interest in the economic, political and cultural areas are some of the actions that can be initiated by the government with the active participation of the private sector and media organizations.

As a practical matter, there is an urgent need to develop a comprehensive inventory and updated, accurate data base agreements currently in force in Mozambique. A system to monitor and evaluate the implementation of permanent agreements in effect is extremely important. Government departments and agencies involved in the treaty process management needs to provide more information, and facilitate awareness activities and public debates about the importance of agreements. The government could, for example, use agreements making process as a development policy tool for poverty eradication; ie more trade and investment and business opportunities can reduce unemployment, welfare business operators and thus can represent an effective way to create value in the country.

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