Inter Press Service (Johannesburg)
28 November 2008
Cote d'Ivoire became the first country in Africa to sign an economic partnership agreement (EPA) with the European Union this week, prompting fears that the accord will prevent the country from developing closer ties with its neighbours.
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There must be something inherently wrong with this concessionary deal that Cote d'Ivoire signed with the EU. I do believe that earlier this year, the ECOWAS countries were unanimous in rejecting such overtures that could destabilize the economy of the entire region. The fear expressed by the EU is the overall influence that Nigeria was wielding on its sister countries, to the degree that ECOWAS countries are becoming less dependent on the EU, and more interdependent on each other. For Ivory Coast to agree to an 80% reduction of taxes levied on imports, the result would lead to massive importation of cheap and "gray market" goods, and/or contrabands which many European countries would not even allow to be sold in their respective countries. The Chinese, as well as Indians or cheap products from the Asian Sub-Continent will find their way into Cote d'Ivoire by using ficticiously registered companies from EU countries to allow such shipments to find their ways into the country. Cote d'Ivoire will be saddled with unfavourable balance of payment problems. This will spell doom to an economy which has been ravaged by war, and are just recently trying to find its footing in the globalized economy. With cheap products comes criminal elements from neighbouring countries who would see Cote d'Ivoire as a country to smuggle cheap goods from. Any attempt to develop local industries would be weakened because the economies of scale would far outweigh the need for alternative and competing industries. In the end, a 15-year concession for a supposedly free trade deal would be equivalent to 100-years of economic slavery. For an economy that is just about to define itself, and to create a lasting industry for a sustainable growth and employment for its citizens, the few local products such as coffee, bananas,and cocoa which the country is using as a justifiable reason to slash 80% tax levy on foreign imports is not worth its weight in salt. The trade-offs in real terms is very disproportionate and the odds are stacked against Cote d'Ivoire and its citizens. The previous commentary described this agreement as neo-colonialism. I would classify this as the equivalence of Japanese Kamikaze. The EU has everything to gain, and nothing to lose. Had Cote d'Ivoire been a major producer of coffee, banana, and cocoa in the world to the degree that the impacts made by other producers of the same products would be deemed negligible, I can see the rationale for this Agreement. But, from the ECOWAS countries alone, not to mention similar products coming from East Africa's Kenya, Uganda and the Congo, and/or, even countries from Central America and the Caribbean, this Agreement is bad for the ECOWAS countries. I fully agree with Chibuzo Nwoke of the Nigerian Institute of Int'l Affairs. This is worse than playing the double role of partner and umpire. And for Beberage manufacturers to attempt to relocate their entities from Nigeria to Ghana, not only looks like the "divide and conquer" syndrom which Africans have often accused the EU as a methodology, or a precursor to destabilization, but, it seems to serve as a warning to Nigeria, that it should desist from playing the "Big Brother" role. I would caution though, that a destabilized ECOWAS would spell trouble for the EU, as more and more migrant workers would land on the shores of the EU in search of jobs. Meanwhile, African countries spend all their resources in training their citizens in their various countries, and the ultimate beneficiaries of these talents, be they in medicine, law, engineering, agriculture, and other allied fields of endeavour would be the EU. Cheap labour would be rife for employment, with their wages so deplorable that many can hardly make it on a day to day basis in these countries. It is sometimes very depressing to observe highly educated African professionals doing odd jobs in the EU as Security Guards, Taxi Drivers, Cleaners, Waiters in restaurants, etc, etc, only because they are not welcome in the EU corporate environment. This type of trade deal that Cote d'Ivoire has signed is bad for the entire continent and truly a slap in the face of all well-meaning and good thinking Africans. I do hope the Ivorian Congress would reject this deal.
Neo-colonization is taking steady shape in Africa.This agreement between Ivory Coast and the EU is not in the interest of West Africa and Africa at large.I advise that Ivory Coast's neighbors take immediate steps to discourage dutiy-free goods imported from European Union countries through Ivory Coast from entering their countries.If this is allowed to happen,it will deprive them of badly needed revenue from import duties. poverty,disease,illetracy,hunger,political instability are not the main problem Africa has to address:it is neo-colozination which will always deprive africa the means to get rid of henger,diseases,poverty,etc.