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The EU-Africa summit that took place in Lisbon,
Portugal, this weekend has been criticised for not
delivering concrete outcomes although it did do one
useful thing: it highlighted the massive problems
and tensions that exist because of the trade
agreements Europe wants to finalise with 76 African,
Caribbean and Pacific countries by the end of the
year.
At the time of writing, 15 countries, 13 of them in
Africa, had initialled far-reaching deals that
threaten to split the regions apart. But more than
60 countries are still holding out, and at the
summit - ironically with a theme of partnership -
there were strong voices raised in opposition,
notably from Senegal's President Wade.
The Economic Partnership Agreements (EPAs) being
negotiated between the EU and its former colonies
are about anything but partnership.
They are harsh reciprocal trade arrangements that
demand that some of the poorest countries in the
world to open their markets to EU goods, in some
cases almost overnight. Until now, many countries
have held out against the pressure, but as the
December deadline approaches, some are giving in -
choosing to guarantee existing exports at the
expense of future industrial development and
subsistence farmers' livelihoods.
Ivory Coast's signature on Friday was particularly
disappointing. The West African bloc barely had the
draft text on the table and suddenly, one of their
most powerful members had broken away and signed a
free trade agreement with the EU - the region's
largest trading partner. The text was brand new,
written by the European Commission and seen for the
first time in the region only a few days before.
There had been no public consultation, just a series
of high level diplomatic missions flying in from
Europe telling the politicians to sign or see their
export sectors collapse in three weeks time due to a
massive hike by Europe in their import taxes.
Nigeria has flatly refused the agreement, as has
Senegal. Ghana is still holding out. All last week
Ghanaian officials were in urgent and tense
discussions with a high level delegation that had
flown in from the European Commission. European
powers have also exerted pressure behind the scenes,
taking the President aside for one-on-one talks to
'discuss' what is in his best interests.
After decades of attempts at regional integration
and efforts to foster stability in one of the
world's poorest and most unstable regions, it seems
that Europe and the Commission feel they need to
impose what is 'good' for the region once again.
Five East African countries were the first to sign,
splitting from their neighbours two weeks ago,
abandoning a text that had been in negotiation for
several years, to initial the brand new text the
European Commission placed in front of them. Then
the four smallest countries in Southern Africa broke
away from their neighbours, plunging the world's
oldest customs union into crisis. Papua New Guinea
followed suit, veering away from the Pacific Islands
with whom it has negotiated for the past six years.
Only the Caribbean and Central African regions'
negotiating teams remain intact.
It would not be so bad if the content were not so
disturbing. Countries are signing up for full-scale
liberalisation with their largest trading partner,
opening up between 80pc and 97pc of trade with
Europe in a space of just 10 to 15 years. They are
agreeing to freeze all tariffs immediately and then
eliminate their export taxes. They are
systematically giving away much of what they have
fought for at the World Trade Organisation (WTO).
Some are even guaranteeing Europe that it will never
have less favourable access to their markets than
its major competitors - China, Brazil and the US.
This goes further than the trade liberalisation
Africa saw under structural adjustment, which wiped
out industries in the 1980s. Policies that the World
Bank later regretted. However, unlike in the 1980s,
now even the free traders accept that rapid and
poorly thought-through trade liberalisation brings
inequality and destroys industries. There really is
no 'development' smokescreen to hide behind. But
like in the 1980s, the conditionalities here also
bite. The agreements contain strong dispute
settlement mechanisms through which Europe can make
very sure that countries comply.
What's worse, none of this was necessary.
It is not as if politicians in developing countries
do not know that these agreements are bad. They
know, but for many, the only alternative they see is
worse. Europe has put them between a rock and a hard
place. Countries are signing up to avert imminent
disaster in their export sectors. The costs of the
free trade agreements lie squarely in the future,
while the costs of not signing are only a couple of
weeks away. At the end of the day, when nearly half
of your government budget comes from Europe and 100
million dollars a year directly from the European
Commission, it can be hard to say 'no'. This is the
case for Mozambique, one of the poorest countries in
the world.
As the dust settles after Lisbon, one thing is
abundantly clear. After decades of building an
effective trade and aid partnership between Europe
and Africa, there is no longer a genuine partnership
in trade. Contrary to Europe's claims, its threat to
raise tariffs on January 1, 2008, is not a legal
imperative. It is a choice. Pure and simple. Any
development-minded minister from any EU member state
must see that and must do something about it - now -
before it is too late.
The Lisbon summit must be a wake-up call for the
politicians who have been slumbering while European
technocrats crowbar ever-harsher demands into
intrinsically unfair deals. The threat to raise
tariffs should be removed, and countries that have
not signed EPAs must be reassured that they will not
be left worse off after January 1.
Those who have initialled interim deals should be
given the opportunity to review and if necessary,
renegotiate, potentially damaging clauses. Any less
than this will leave the EU with the uncomfortable
legacy as the power that undermined Africa's chances
for future prosperity and denied the continent the
opportunity to use trade to help lift people out of
poverty.
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