TRADE-AFRICA: EPAs Like ”Irrigation for Economic Growth”

By Pilirani Semu-Banda Reprint | | Print |

Pilirani Semu-Banda

BLANTYRE, Apr 26 2007 (IPS) - African and European negotiators in the economic partnership agreement (EPA) talks for eastern and southern Africa have refuted criticism from local and international civil society organisations about the possible negative effects of the proposed deal.

The government of Malawi hosted technical discussions this week (on April 24) for the 16 countries involved in the Eastern and Southern Africa EPA grouping. These discussions happened amid protests emanating from five nongovernmental organisations about the detrimental effects of the EPAs.

They argue that the EPAs may destroy Malawi’s potential to diversify its economy and build a manufacturing sector. The revenues from tariff duties will also be lost. The European Union is currently negotiating EPAs with six groupings of African, Caribbean and Pacific (ACP) countries. The EPAs will replace the old preferential trade agreements dating from the 1970s onwards.

In response, Alessandro Mariani, European Commission ambassador and head of delegation to Malawi, says ”while we think the NGOs’ arguments and fears are not really justified, we need to address them and make an effort to explain to the wider public what we are doing and what our objectives are”.

But he also says he does not need to persuade anyone of the importance of the EPA and of its potential benefits for the economies of the region. People are aware of its potential as well as of the challenges and difficulties of these negotiations, Mariani argues.

He defends the EU, saying it is not looking for ”free trade” with ACP countries when the agreement is signed or thereafter. Rather, the EU will open its market to ACP exporters. The ACP will also retain the right to protect sensitive products where the removal of import duties could threaten local producers.

”There will be no more duties, no more quotas. Full stop,” Mariani told IPS.

Mariani admits that the principle of reciprocity under the World Trade Organisation (WTO) rules means that ACP countries will have to offer market access to EU products but that this commitment will be phased out.

From the Malawian government’s side, Malawi’s principal secretary for trade and private sector development Newby Kumwembe is optimistic about the new trade agreement. He is rallying support for it.

According to him, Malawi will take advantage of the new deal to push the EU for assistance with the improvement of the country’s infrastructure in areas such as transport and energy. By attending to these issues, the playing field can be levelled.

WTO representative Dickson Yeboah contends that countries as members of the WTO have a stake in the multilateral trading system and can influence it. An effective multilateral trade system will allow governments to keep their domestic markets open and liberalise further in accordance with their trade, financial and development needs.

”Liberalising trade means increasing individuals’ range of choice. Freer trade is not a flood which sweeps away jobs and national standards but is rather irrigation for growth. The irrigation channels are the negotiated rules of the multilateral trading system,” argues Yeboah.

Common Market of Eastern and Southern Africa (Comesa) assistant secretary general Sindiso Ngwenya is also positive that the final EPAs will be good for poor countries. He is one of the Eastern and Southern Africa (ESA) EPA group negotiators.

According to him, the EPAs will only be to the detriment of poor nations if there is no development component in the agreements. ”From what we have seen of the European Commission’s intentions we are confident that they understand our position and will take our concerns on board,” says Ngwenya.

Minister of trade Ken Lipenga has expressed concern about the African negotiators’ skills when compared to their European counterparts. Last May, when he opened a training session for trade negotiation skills in Malawi, Lipenga singled out the lack of negotiating skills in the area of international trade as having detrimentally affected Malawi’s development of trade.

He is concerned that the country’s trade negotiators sealed trade pacts that have failed to benefit the country. Malawi would have been better off had it used skilled negotiators.

”Our developed partner negotiators have become very shrewd. They have come up with new tactics such as green rooms, friends of the chair, mini-ministerials and late hour conclusion of meetings,” said Lipenga, referring to the WTO negotiations.

Trade negotiations happen among selected countries behind closed doors in ”green rooms” at the WTO; friends of the chairperson at WTO meetings are again selected countries who meet separately; mini-ministerial meetings are also exclusive events; and the late conclusion of WTO meetings have caused developing country negotiators to be excluded yet again.

Yeboah, who facilitated the training in trade negotiation skills, says Malawians need the negotiation techniques to help it benefit more from the global market.

The negotiators from ESA also want the EU to help build the capacity of poor countries in implementing and benefiting from liberalised trade and increased market access so as to help them integrate into the global economy.