1 February 2008
Addis Abeba — As Africa's Heads of States debate the progress of industrialisation in Africa at the opening of the 10th African Union Assembly, Afroflag Youth Vision and Oxfam International have called on African Governments to act jointly and block the threat posed by the European Union's Economic Partnership Agreements (EPAs), "As the single most important trading partner for Africa, the implementation of EPAs will have a critical negative impact on Africa's industrial development and economic policies", a joint statement issued yesterday by Afroflag Youth Vision and Oxfam International quoted Abera Tola of Oxfam who was speaking in Addis at the Summit as having argued.
"An overwhelming number of studies indicate that the lowering of import tariffs will rob government of significant revenue, forcing governments to cut expenditure on essential public services such as health care and education. This is clearly suicidal given the challenges Africa faces" The EPAs require African countries to liberalize their tariffs, thus threatening the livelihoods of millions of rural producers and the viability of local manufacturing industries. The current proposals would entail African governments freezing all remaining tariffs at zero, effectively relinquishing the right to use tariff policy as an instrument for development, according to the statement.
For Burundi, Cameroon, Congo, Kenya and Mauritius the loss in tariff revenue is greater than their entire spending on health in a 'worse case' scenario. In Congo, Mauritius and Togo, the drop in government revenue from trade liberalisation under an EPA is nearly equivalent to their government expenditure on education. Gambia and Cape Verde stand to lose nearly 20 per cent of their total government revenue, while Ghana and Senegal will face a decline in revenue of 10 per cent, added the statement.
"In Lisbon, African leaders made the point very clear. Now Africa's leaders must clearly articulate that an African common position is necessary. EPAs must not jeopardise existing benefits of trade under the Cotonou Agreement or reverse attempts towards industrialisation. We echo our Ministers call to jointly address this at the highest political level", the joint statement quoted Eyob Balcha of Afro-flag Youth Vision of Ethiopia as saying.
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