Leocadia Bongben
25 April 2008
Accra — Civil society organisations have warned African Caribbean and Pacific, ACP, countries to resist Economic Partner Accords, EPAs, since they have failed to advance development in Africa.
The civil society organisations were taking advantage of the United Nations Conference on Trade and Development, UNCTAD XII, holding in Accra, Ghana, to push forward their position on trade issues between the European Union. They condemned the fact that EPAs have failed to advance development in Africa.
They are of the opinion that "the European Union, EU, would damage development prospects of some poorest countries in the world unless it overhauls the Free Trade Agreements" started six years ago with 76 countries.
In December 2007, 35 ACP countries agreed to initiate interim Economic Partnership Agreements with EU to be completed in 2008. They did so under the pressure of immediate costs.
The European Commission used the expiry of a World Trade Organisation, WTO, to coerce ACP countries into accepting free trade agreements. According to the African Trade Network, the accords would radically affect the ACP-EU trade and economic relations having a negative impact on ACP national and regional economies.
Oxfam International, in a report by Policy Analyst, Emily Jones, opines that the deals strip Africa of the tools they need to develop, as it kicks away the development ladder used by Europe, forbidding a variety of trade and investment measures needed to create jobs. She argues that the deals are more of a power play than partnership and they hurt the poor.
According to Mouhamet Lamine Ndiaye, Oxfarm Pan Africa Head of Economic Justice, "the costs will be enormous: annual losses from tariff cuts of 360m dollars for Africa alone and a further 9billion dollars for compliance for all the countries involved. Not to mention the loss of independent trade policy, badly needed to promote development and protect livelihood."
Oxfarm argues that fair deals with the EU would fully open markets to all exports without demanding reciprocation, put production concerns first, It would also give ACP sovereignty in economic policy to govern and pursue regional integration on their own terms and assist countries to be more competitive and generate decent jobs.
The report recommends a renegotiation of problematic areas in the interim deals, additional support from EU to tackle infrastructure and competiveness constraints. It also urges ACP countries to take stock within regional blocks, fully consulting all affected parties including workers, producers and public businesses.
The World Development Movement's report, "Raw Deal", launched Tuesday, April 22, indicates that the benefits of signing free trade deals lies squarely with EU business.
Cameroonian born Elizabeth Tankeu, AU Commissioner for Trade and Industries, argues that AU has equally taken its position on the issue and so far has held seven ministerial meetings and it is against the EPAs.
"There are a lot of controversial issues with the interim agreement such as signing individual agreements with different schemes of liberalisation for countries that belong to the same regional grouping," Tankeu argued.
According to her, it would be difficult to implement free trade in ECOWAS and get the same tariff, stating that the EU has to reconsider reviewing the interim agreements.As the EU is hurrying to conclude the deals on goods by mid 2008 and round up on services, investment and other areas, legal experts have argued that the interim deals are not legally binding and could be revised.
Civil society therefore has urged UNCTAD to pressure the EU to stop putting pressure on ACP countries to conclude them.
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