EU under fire over Third World trade deal
The European Union has come under fire from a charity over deals which allow developing countries to sell their wares in Europe duty-free.
Oxfam claims the deals have strings attached which could undermine the future prosperity of countries such as the Ivory Coast and Kenya.
It says in return for being able to continue to sell their goods in Europe duty-free, the developing nations must, in almost all cases, remove tariffs on up to 97% of European imports within 10 to 15 years – prompting fears local industry in those countries would struggle to compete.
The attack comes as EU and African leaders gathered in Lisbon at the start of a two-day summit.
Referring to the European Commission, the body that proposes legislation for the EU, Amy Barry, Oxfam trade spokeswoman, said: “The Commission has portrayed the interim agreements as soft, not very binding and flexible but our analysis reveals some extremely concerning provisions that could destroy industry and livelihoods and do untold damage to the progress of regional integration, which ironically was meant to be one of the objectives of these deals in the first place.”
The introduction of the deals, known as Economic Partnership Agreements (EPAs), follows the World Trade Organisation’s declaration that the current preferential trade agreement between the EU and almost 80 countries is illegal.
If countries do not sign up to EPAs by the end of the year, they face the prospect of tariffs being imposed on their goods sold in Europe from next year.
This, Oxfam claims, is putting them under “enormous pressure” to agree to EPAs on highly unfavourable terms.
Ms Barry said: “It is astounding that the Commission is prepared to push through such highly inequitable deals that will hurt poor farmers and undermine future development.
“They are doing so in the face of concerns expressed not only by civil society, trade unions, farmers’ and employers’ organisations and research institutions, but also by international institutions like the United Nations Conference on Trade and Development, the International Monetary Fund and the World Bank.”
Ivory Coast has became the latest country to agree an EPA with the EU – so far 15 of the 76 developing nations involved the negotiations have reached agreements.
They are Kenya, Uganda, Tanzania, Burundi, Rwanda, Zimbabwe, Seychelles, Lesotho, Swaziland, Botswana, Mozambique, Mauritius, Papua New Guinea, Fiji and the Ivory Coast.
EPAs are seen as stepping stones to more complex deals which include rules on services, intellectual property and investment.
They create a free trade area between the EU and African Caribbean and Pacific countries.
