EU urges developing countries to sign up to free trade deals

In an open letter to anti-poverty campaigners, EU Commissioners for Trade and Development Peter Mandelson and Louis Michel  stressed that the current framework "has largely failed to deliver development" and that the new EPAs will help ACP countries to build stronger economies and regional markets, thus giving more opportunities to local businesses, building confidence and attracting new investment. 

"Calling for an end to EPA negotiations when there is no credible alternative is playing poker with the livelihoods of those we are trying to help… ACP countries deserve better than attempts to caricature them as weak and helpless," they wrote. 

They insist that the 2008 deadline cannot be dismissed, saying non-ACP developing countries "expect us to honour our promises" and that "they can and will challenge us unless we agree new WTO-compatible arrangements". 

Furthermore, they stress that the EPAs will not force ACP countries to open their markets immediately, as they will "be able to protect and exclude sensitive products and take advantage of long transition periods to nurture growing industry…During this time the EU will provide very substantial technical and financial support to help with implementation of the new arrangements." 

The Commissioners are supported by the Association of European Chambers of Commerce and Industry (Eurochambres), which represents over 19 million enterprises in Europe, which criticised NGOs' "mystifying and demonising campaign against EPAs". 

"Trade is at the very heart of development," stressed the association, pointing to the fact that regional integration will create enlarged markets that are more attractive to invest in, and that investments from European countries will foster a beneficial transfer of know-how in crucial areas such as services. 

In Africa, traders are also concerned. Last week, the East African Business Council (EABC) expressed concern that the delay in talks is affecting exports heading to the EU. "The uncertainty is detrimental, affecting business plans particularly for the EU-destined export companies as they cannot easily negotiate favourable contracts with European Union partners for transactions beyond the life of the current EU-ACP agreement which guarantees duty free access," Arun Devani, the chairman of the council said. 

However, the African Centre for Trade and Development (ACTADE), urged governments not to sign the EPAs saying that they will prevent countries from protecting their markets from EU imports. ACTADE's executive director Elly Twineyo said: "Previous agreements had non-reciprocal trading relationships – ACP countries could protect their markets from EU imports while ACP exports had better access to EU. But EPAs mark a radical departure from this." 

Fair Trade NGO Oxfam insists that "very few ACP countries will be ready to sign an EPA by the end of the year, and must not be coerced into doing so. Viable alternatives need to be considered, at least for an interim period... The EC's claim that they are being flexible is belied by their behavior in the negotiations, where they continue to insist on the deadline and reiterate demands in areas such as services, investment and government procurement, that would have negative implications for development." 

Anti-poverty NGO ActionAid adds that EPAs will result in the dumping of cheap agricultural products and the loss of local businesses. "The European Commission is using strong-arm politics to push African countries to sign up to trade agreements that will undermine the right to food," said Bibiane Mbaye, ActionAid Policy Coordinator for Western and Central Africa. 

The European Trade Union Confederation (ETUC) has called on the Commission to extend the negotiation deadline beyond the end of December 2007. 

"The reality of many ACP countries today is that they are being required to simultaneously negotiate a regional customs union, a bilateral deal with the EU and a multilateral negotiation process through the World Trade Organisation," said ETUC General Secretary John Monks. "Very few countries in the world would be able to successfully take up such a challenge in five years, and the poorest countries are certainly not in a position to do so".