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TRADE-AFRICA: ''EPAs Are Not About Partnership''
By Miriam Mannak
CAPE TOWN, Feb 25 (IPS) - The economic partnership agreements (EPAs) currently being negotiated between Europe and its former colonies in the African, Caribbean and Pacific (ACP) regions are not about equal partnerships but about enabling ‘‘big giant Europe to gain better access to African markets’’.
These are the words of Malcolm Damon, director of the Economic Justice Network (EJN). The EJN is attached to the Fellowship of Christian Councils in Southern Africa. It develops and shares information and advocates economic justice in trade, debt and food security.
‘‘There is no two-way traffic. For example, rice and sugar will still be restricted (for a period). Helping developing countries to gain better access to European Union markets is not one of the prime objectives of the agreements,’’ Damon said at a special review meeting of the Africa Trade Network (ATN) that was held last week (Feb. 20 – 22).
The ATN consists of a wide variety of African civil society organisations that are concerned about trade and livelihoods. The review meeting held in Cape Town, South Africa, was attended by trade officials from across Africa as well as representatives from African and international non-governmental organisations.
Damon said that opening up Africa's markets to European goods and services could lead to an increase in poverty rather than a decrease. ‘‘When a country opens up its market to the EU (European Union), it agrees to reduce its import tariffs for European products. The government automatically faces a decrease in the amount of revenue earned.’’
According to Damon, this could affect levels of poverty negatively.
The EU used bullying tactics to push several ACP countries into signing interim EPAs last year, said Damon. These agreements are to be followed by full agreements this year.
‘‘Those nations that refused to sign faced higher import tariffs for their products in the EU market,’’ he said. ‘‘This means that they would have become less competitive compared with other countries that export goods to the EU. In short these nations would have been forced to pay more tax on products they were bringing into EU markets.’’
As a result, many signed despite having grave doubts about the implications for development and domestic policy space.
The EPAs are reciprocal trade agreements which are, according to the EU's website, ‘‘designed to foster the smooth and gradual integration of the ACP countries into the world economy, promoting their sustainable development and contributing to poverty eradication. Thus, EPAs are, above all, an instrument for development’’.
The ACP region has been divided in six regional groups: Southern Africa, East Africa, West Africa, Central Africa, the Caribbean and the Pacific region. So far, 35 countries have initialled to sign an interim EPA while 41 are refusing, including South Africa, Angola, Ethiopia, Nigeria and Malawi.
‘‘The agreements can be considered as a new form of colonialism as they are agreements imposed by Europe on its former colonies to safeguard its own markets,’’ said Damon.
‘‘The EU claims that the purpose of the agreements is to help and develop the region. This is not true. The agreements are about Europe's wellbeing,’’ added Tetteh Hormeku of the African branch of the Third World Network, a non-profit international network of organizations involved in various development issues.
Dr. Rob Davies, South Africa's deputy minister of trade and industry, agreed, saying that there is a huge gap between what is claimed to be the EU’s intention with the EPAs - a better future for the ACP region - and the real picture.
He pointed out that the regional unity of the ACP states had already been undermined by the arbitrary division of the ACP into six blocs. (END/2008)
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