Although it will be the third joint session between the two sides,
it is the first time the EC has convened a meeting outside of
Europe. Addis will be swarmed by 10 commissioners, including Louis
Michel, head of Development and Humanitarian Aid, and Mr. Mandelson.
The two sides are
expected to evaluate progress made on a strategy the EU developed on
Africa last year: it gives much emphasis on the management of
migration from Africa, while AU’s interest lies in the partnership
it feels it has with the EU on infrastructural development.
The EU has agreed
to grant 55 million euro to the cash strapped AU in its
institutional capacity building efforts, to be effective January 1,
2007. It is one of the four issues AU wants to address in strategic
planning developed two years ago.
Prime Minister
Meles is determined to take advantage of the presence of top EU
officials in Addis. He will be meeting with many of the
commissioners, but more importantly, with Mr. Mandelson on Tuesday,
together with his top lieutenants in the economic sector. According
to sources, Trade and Industry Minister Girma Birru and chief
Economic Advisor, Neway Gebreab, will be attending this meeting, to
be held in his office.
Ethiopian
officials are expected to push EU to loosen up trade barriers based
on quality standards, as well as concerns on sanitary and
phytosanitary issues. There is a great deal of concern by African
trade negotiators that the negotiation on EPA is focused on the
reciprocal tariff reduction that is deemed to benefit EU, a trading
bloc that has already provided non-reciprocal quote and duty free
market access to countries such as Ethiopia.
Ethiopia was one
of 16 countries from eastern and southern Africa (ESA) to table a
text comprising 140 articles in the Kenya coastal town of Mombassa
last Wednesday, September 27. It was a result of consensus on trade,
agriculture services, market access and fisheries, reached in
Khartoum last month within the group.
EU trade
negotiators in Mombasa, Peter Thompson, general director for Trade,
and Rodger Moore, general director for Development, were under
fierce criticism from their counterparts from ESA that EU is
undermining what has been agreed in Doha, Qatar: that trade
agreements should have development component.
Erastus Mwencha, secretary general of COMESA, reminded the Mombassa
attendees that what he said is a long-standing disagreement on how
to include development in EPA, and claimed in the absence of such an
agreement a deal between EU and ACP has no value to the ESA
countries.
He is not alone.
The
administration of Prime Minister Meles strongly believes that it can
only bring speedy economic growth through agricultural led
industrialization driven mainly by the export sector. The sixth
EPRDF conference, for instance, concluded last week, expressed its
resolve to pursue a policy of local industrialization with the focus
on export.
It needs trading
partners with big markets and as little barrier on trade as
possible. Meles believes, in a paper he recently distributed in
Manchester, UK, that trade is an instrument for growth and the West
should view it accordingly.
Europe is one of
the major markets for Ethiopian primary goods, particularly coffee,
sugar, pulses, oilseeds and lately flowers. It bought goods worth
371.8 million dollars, representing close to 37pc of Ethiopian
exports last year, only barely second to Asia that had a 38pc share,
due largely to China’s large scale purchase of sesame.
The trade balance
has, however, remained in favor of Europe: according to a study that
surveyed trade between the EU and Ethiopia four years ago, the
latter had bought 369.5 million dollars more than what it had
exported during the same year, 210.2 million dollars.