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Saturday, April 23, 2011

FREETRADEWATCH-EPAs are bad for Africa http://www.bilaterals.org/spip.php?article19386

The position taken by Namibia with regard to the signing of the Interim Economic Partnership Agreement (EPA) is commendable and should be a guiding principle for further negotiating trade agreements between Africa and the rest of the world. I salute the Namibian Government for its bold stand with regard to EPA and for standing up to the arrogant European Union. The whole of Africa should do the same as we now negotiate for permanent EPAs.In fact, I do not agree with the manner in which these EPAs are being negotiated.The approach taken by the European Union (EU) towards the negotiations for EPAs with the African, Caribbean and Pacific (ACP) nations will prove to be one of the greatest impediments to Africa’s economic development. I am saying so because of two reasons; the first one being the division it has caused within African countries.

While Africa has spent a lot of time, efforts and resources towards the achievement of political and economic integration which can make it a truly one single market, EPAs are suggesting a fragmented Africa with several trade arrangements with the European Union.This will make the attainment of deeper economic integration in the African continent difficult and I will come back to this later on in this opinion piece. The second reason why EPAs are an obstacle to Africa’s economic development is that they are discouraging the production of manufactured products in Africa for both the African and the world markets. As far as I can see, the EPAs will ensure that Africa remains a good source of raw minerals for the industrialised economies and a good market for processed products from Europe and the rest of the developed countries.

Europe itself developed under stringent tariff regimes that protected its markets against imported products in order to promote their own businesses and products. Having developed their industries by using high tariffs and other forms of taxes, they are now demanding that Africa must open up for their products while they know too well that these products can easily dominate the African markets and prevent African industries to develop.For the above two reasons, I reject the proposed EPAs and would advise African states through the African Union to abandon current negotiations and rather push for negotiating towards a common position and a single trade arrangement with the EU which trade arrangement will be favourable to Africa’s industrialisation.

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