EU-Africa Trade: Africa Makes its Case, but will Europe Act?

12.09.07

African leaders made repeated requests for more time to negotiate Economic Partnership Agreements (EPAs) during the EU Africa Summit in Lisbon and said the agreements were divisive and potentially damaging. The EU’s response to these requests is not yet clear, although EU President Jose Manuel Barroso has offered to meet African regional leaders as soon as possible.

DATA’s European Director Oliver Buston said: “Europe has finally been made to listen to African trade concerns and appears to be shifting its position slightly. But next steps are far from clear. We will learn very soon whether the EU’s talk of partnership with Africa will result in action. Africa’s development needs must be made the top priority in these trade negotiations.”

Greater clarity is also needed on the status of interim trade agreements, which have been initialled by many African states concerned about incurring higher tariffs if they refuse.

“Interim agreements should not restrict the possibility for review of potentially damaging provisions, especially for those states who feel they have signed up under pressure,” said Buston.

DATA has repeatedly urged negotiators to remember their promises to ensure that world trade benefits developing countries. “Africa’s share of world trade is 2%. Europe has 40%. We could open our markets to Africa completely and not feel a thing.” said Buston.

DATA says a trade deal for Africa must ensure:

• African goods receive 100 per cent access to all European markets without the EU demanding aggressive reciprocal access in return.
• EU rules of origin and product standards are simplified. At present complex EU rules effectively impose at least 10 per cent extra cost on African exporters.
• Aid for trade promises must be fulfilled. Europe has promised to provide funds to help Africa’s supply-side needs such as training, infrastructure, marketing and product development, but the provisions for these in EPA negotiations are vague and funds have not been forthcoming.
• European subsidies on agriculture are beyond the scope of EPAs, but must be reformed. Subsidies undercut domestic African production of many goods including poultry, rice, sugar, fruit and vegetables.

DATA contacts in Lisbon for the EU-AU Summit:

Katy Cronin, DATA Media Manager + 44 7788 710 789
Oliver Buston, DATA European Director + 44 7963 288 446