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Whither
civil society in the Economic Partnership Agreements Negotiations?
Richard
Kamidza
Trade and economic cooperation
was a function of preferential tariffs under the Lome Conventions
between the ACP and the EU countries. The new economic and trade
co-operation under the Cotonou Agreement consist of a mélange
set of arrangements that attempt to go beyond trade. This was perceived
by many as having broadened the scope of engagement through the
inclusion of non-state actors. If this was genuine, the non-state
actors should have been involved when the Cotonou Agreement itself
was being negotiated. Not to be included on the consequent Economic
Partnership Agreements negotiations.
The Cotonou Agreement signed
on the 23rd June 2000 belatedly provides a framework for involving
non-state actors to actively participate in the formulation of co-operation
policies and strategies, and their subsequent implementation. The
aim is to establish mechanisms, which reconcile state responsibilities,
and the recognition of the increasing role played by non-state actors
in the development process. Increasingly, and over the years, non
state actors have played a significant role in the development processes
of countries particularly in the south, where they have filled in
the gap created by the continued weakening of the state. The Seattle
Debacle, where non state actors played a significant role in demanding
the recognition of peoples’ rights over commercial interests,
among other things, provided the much needed fuel and platform for
them to get recognition from governments. It is not surprising though,
that the Cotonou Agreement attempted to embrace civil society albeit
at a later stage. Even the United Nations has now a desk for the
participation of non-state actors particularly civil society on
matters related to development. Proponents of neo-liberalism including
the World Bank have also seen it necessary to include civil society
in trade and development issues although this may be seen as text
book engagements without practical democratic participation of the
bodies in the formulation of policies for development. So the writers
of the Cotonou Agreement had no choice but to also attempt to include
non state actors in authoring and mentoring the exploitation of
people in developing countries.
However, deep involvement
and wide consultations of civil society remains a complex issue
largely because of different situations in the ACP countries. Fundraising
difficulties and tight conditions linked to EU money is another
limiting factor that is prevalent in the six ACP-EPA regions. Having
observed the above limitations, the ACP Secretariat promised to
organize private sector and civil society fora designed to elicit
useful reflections from them, which feed into the bilateral trade
negotiations. However, the ACP Secretariat’s promise remains
a pipe dream. In addition the ACP leadership during the launch of
EPA configurations expressed strong desire to involve non-state
actors in bilateral trade negotiations. The promise was well demonstrated
by all the six EPA configuration road maps whose central thesis
was “wide consultations and involvement in the new trade pact”.
State of play at
the ESA Configuration
In the spirit of the Cotonou
Agreement, the Eastern and Southern African (ESA) configuration
has since its launch in February 2004 (Mauritius) pronounced its
eagerness to involve national and regional civic bodies in the on-going
process. ESA-EPA road map has established national and regional
structures whose mandate is to develop negotiating positions to
engage with the EU. As such, each country has to establish the National
Development Trade Policy Forum (NDTPF) comprising government and
non-state actors. This structure is supposed to facilitate wider
consultations among all stakeholders as well as guide the process
of developing national positions before tabling them at the Regional
Negotiating Forum (RNF). At each RNF meeting, every country is mandated
to submit progress reports that reflect activities being implemented
and the level of consultations. However, this assumption forgets
that some countries still lack the democratic space that allows
civic bodies to participate in this process while others have not
only weak, but underdeveloped non-state actors. Even in those countries
where say private sector and other socio-economic actors are relatively
developed, the level of ignorance at the membership level about
this bilateral trade engagement is prevalent.
At the regional level, ESA-EPA
negotiations provide space for one regional civic body to be involved.
The Southern and Eastern African Trade Information and Negotiations
Institute (SEATINI) has been invited as the only civic body to input
into the negotiations process and working as a link to other civil
society organizations. SEATINI has been contributing to the process
and is the only civic body participating in the Regional Negotiations
Forum (RNF) meetings that has got speaking rights. In addition,
the organization has developed mechanisms for informing its strategic
partners about the balance of forces and content of discussions
at the RNF. But SEATINI’s lone voice so far justifies the
call for investing in building capacity and networking among national
and regional non-state actors as well as mounting negotiations training
skills that target government trade negotiators. This also calls
for running workshops and seminars for Members of Parliament (MPs),
especially those dealing with trade protocols at the national and
sub-regional levels. All the outlined programme activities seek
not only to address the prevailing limited democratic space in some
member-states, but also create conditions for cross fertilization
of knowledge and ideas on trade bilateralism.
Despite all the above pitfalls
and weaknesses, are there lessons to learn with the view to support
the Cotonou Agreement framework of “wide consultations and
involvement of non-state actors”?
What are SEATINI’s
observations?
From all the ESA-EPA meetings
held so far (Consultative Working Group meeting held in Lusaka;
RNF meeting in Mombasa; and RNF meeting in Entebbe), the discussions
still lack the requisite socio-economic and political analysis of
the sub-regional challenges and dynamics this process is facing
within the ESA configuration. This is worsened by little scrutiny
from member-states coupled with their seemingly passive attitude
that result in surrendering the whole process to the coordinating
regional secretariat – the Common Market for East and Southern
Africa (COMESA). In addition, the dangling of developmental aid
by EU has triggered fast emotions by each configuration to rush
the process so as to be the first in concluding an EPA. While the
ESA configuration has so far dwelt on procedural matters, their
counterparts in the EU, have already developed firm positions for
negotiations.
All country delegates have
failed to submit written progress reports as mandated by the ESA-EPA
road map. Instead, only verbal country briefings without any substantial
data have replaced traceable and documented reports. This not only
undermines the NDTPF mandate, but also becomes a fertile ground
for giving false impressions of what is happening at the respective
country level. As a result, some countries end up misleading the
RNF by reporting activities and programmes that are not shared at
the NDTPF including the status of National Assessment studies and
wide consultations and involvement of non-state actors.
In many countries, the necessary
broad consultations as required by the ESA-EPA road map are not
yet there. Even in those member-states with viable private sector,
the knowledge of the on-going process is restricted to the secretariat.
The membership is still in dark. The media is not helping either.
Despite this serious weakness, verbal reports by many country delegates
are silent on “wide consultation and involvement” of
non-state actors. Obviously, respective country delegates cannot
embarrass themselves in front of their peers, a development that
endorses a process of minimal involvement of non-state actors in
the on-going bilateral trade negotiations.
In many countries including
those which hosted the RNF meetings, the level of publicity of this
process leaves a lot to be desired. For instance, the Entebbe (Uganda)
RNF meeting was not well covered in the media (both print and electronic).
In many ESA countries, there are insignificant debates in the media
coupled with total absence of public platforms to debate the EPA
negotiations. Thus, the level of awareness raising in many ESA countries
remains very low, a development that is worsened by weak civil society
coupled with governments’ desire to fast-track the process.
There is scant scrutiny of the process from the ESA-member-states
who are eager to access developmental aid from the EU. At least
for now, the whole process in many countries lacks the requisite
mobilization strategy while at the same time weak networking among
stakeholders at both the national and regional (configuration) level
is failing to halt the fast-moving EPA juggernaut.
The above therefore indicates
clearly that the process lacks the critical voice of non-state actors,
particularly that of civil society movement. The process till lacks
the ability to co-ordinate and organize workshops and seminars whose
throughput contributes positively to RNF deliberations. So far,
very few countries have an organized civil society that is participating
at the NDTPF. However, there is much knowledge of the process from
regional civic bodies, which have expressed readiness to assist
in building capacity of other non-state actors. As argued before,
some countries still lack democratic space to engage freely in this
process. But there are also other regions such as the East African
Community (EAC) where efforts to harness civil society participation
are bearing fruit.
The above shows that countries
are far apart in terms of engagement in the process. While few are
focusing on issues, the majority are either focusing on broad political
relations and/or imperatives with the EU, or are still appreciating
this process. Some member-states lack capacity to prepare for these
negotiations as public officials keep on alternating from meeting
to meeting. Indeed, many countries suffer from lack of institutional
memory as constant rotation of staff to these important meetings
defeats this purpose.
There is high propensity
by countries to look to the EU for support on every aspect of this
process. This is despite the cry against delays in disbursement
of funds (for research and publicity) and widespread unhappiness
about the quality and focus of National Assessment studies done
by consultants selected by EU, usually from the North and other
sub-regions. Common complaints include failure by the consultants
to include national elements in the studies, short time given to
consultants (mostly done within a month), failure to involve national
academics in the studies and weak and/or limited consultation of
all stakeholders.
There are 12 countries, which
are LDCs out of the total 16 member states of the ESA-EPA configuration.
There is suspicion by some countries within the ESA configuration,
especially small economies that feel that they are being taken for
a ride to support four non-LDCs member-states. Already, the 12 LDCs
have access to the EU market through the “everything, but
arms” initiative. This means that these countries have little
to gain, but plenty to lose if the EPAs outcome involve reciprocity.
At least for now, these 12 countries believe that the EU need not
and should not impose reciprocity to the existing trade arrangement.
Conclusion
While the Cotonou Agreement
framework attempted to broaden non-state actors participation, the
above analysis shows some serious weaknesses. Besides the dominance
of the EU through various funding procedures and the passive attitude
of governments, the regional coordinating secretariat has until
now remained blind to the need to invest more in building capacity
among the civic bodies, a process that assists in widening consultations.
At the same time, developing positions suffer from low broad participation
at both the national and regional levels. There are very few countries
that have solid national structures capable of developing both offensive
and defensive positions. To date, a significant number of member-states
are still putting the tools of analysis in place, a development
that is further worsened by failure to complete the studies in time.
Expectations are therefore high for the forthcoming Madagascar RNF
meeting to begin to see countries submitting their positions on
key issues, a process that feeds into the regional front. Already,
individual countries in the EU have already finalized their long
list of positions, and are likely to accelerate the process. At
the same time, the regional secretariat is yet to intensify training
activities as well as supporting workshops and seminars designed
to equip country negotiators with knowledge to assist in this process.
There are no adequate checks
and balance mechanisms since there is no wide consultation in the
process. This is the area where urgent solutions are needed in terms
of coordinating strategies that minimize the negative outcome from
this process. Any poor deal (bad EPA outcome) as a result of a flawed
process only increases the profit margins of EU exporters rather
than lowering prices to consumers and ESA importers. Failure to
clearly articulate offensive and defensive interests results in
sharp falls in customs duty revenues leading to low socio-economic
development and political instability.
Coordination of strategies
at the ESA region is very crucial, especially between authorities
and ambassadors as well as among all the stakeholders including
governments and the regional secretariat.
Richard
Kamidza is SEATINI’s Programmes Co-ordinator
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Between a rock and a hard place
Africa faces no-win situation in trade deal with Europe
Nancy
Kachingwe
Introduction
Since the end of the Cold
War, industrialized countries have been busying themselves with
the re-organisation of international trade regimes. Included in
this globalisation mission is the setting of trade deals between
themselves and developing countries. Supposedly all this to-do about
trade is about lifting the poorest of the poor out of their misery.
Increased trade liberalization, it is said, will provide opportunities
for developing countries to boost export earnings. The Doha Development
Round within the WTO is supposed to work towards this goal.
Offers of increased market
access to the lucrative markets in industrialized countries have
been packaged in the form of the US Africa Growth and Opportunity
Act (AGOA) and the European Union’s Cotonou Agreement and
NAFTA. Unfortunately, all this generosity has a price attached to
it, in the form of policy conditionalities on signatory countries
to liberalise, privatize and deregulate in the name of attracting
investment and facilitating increased business activity. In September
2002, trade ministers from the Africa, Caribbean and Pacific Group
met their counterparts from the European Union to start negotiations
for a new trade deal. The negotiations have already started with
the establishment of free trade areas or “Economic Partnership
Agreements” that constitute the new framework for trade relations
between countries and sub-regions of the ACP.
Why the need for
a new trade deal?
Previously, exports from
the ACP countries entered the European Union market through the
Lome Conventions – a series of agreement dating back to 1975.
In 1994, following a trade dispute between the US and the EU over
banana exports from the Caribbean, the WTO ruled that the Lome Convention
gave ACP countries an unfair trade advantage over other WTO members
and therefore violated WTO rules. There are various legal and developmental
arguments around that particular WTO ruling, particularly given
that the WTO rules make provision for special and differential treatment
for developing countries. In the event, ACP countries were faced
with two options. Under the first option, ACP countries could choose
to abandon the Lome Convention arrangements and export under the
EU’s General System of Preferences (GSP).
This option would mean less
generous treatment for ACP exports, and therefore a potential loss
of export earnings for these countries as their products would become
less competitive. Given that the EU is one of the top destinations
for ACP exports, losing market share would have fairly serious economic
consequences on key export sectors. However, access to EU markets
through the General System of Preferences is on a non-reciprocal
basis, and therefore the GSP would continue to allow local ACP markets
some protection from subsidized EU exports.
Introducing Economic
Partnership Agreements
Option 2 involved setting
up a free trade area (FTA) with the European Union, euphemistically
dubbed “Economic Partnership Agreements” (EPAs). Under
this option, ACP exports would enjoy the same preferences as before,
BUT, unlike the Lome Conventions or the GSP, ACP countries would
have to reciprocate, meaning that they would have to allow virtually
unrestricted access to their markets for almost all EU products
within a ten year transition period. The danger in the EPA proposal
lies principally in the fact that local producers, manufacturers,
and service providers, already battered and weakened from Structural
Adjustment, would have to face competition from a flood of European
imports and companies. The EPA/FTA model is one that the EU is pursuing
under various names as part of its global trade strategy to create
more trade and export opportunities for European companies worldwide.
The European Commission, which negotiates on behalf of all the EU
member states has been mandated to negotiate free trade areas with
the ACP States. The EU argues that EPAs are the only possible option,
if the ACP wish to both maintain the existing market access arrangements
and comply with the WTO rules,. It is also argued by the EU that
the EPAs are the best option for “integrating ACP countries
into the global economy”.
Free trade areas:
a disaster for developing countries
From the outset of the negotiations,
the ACP countries have found themselves between a rock and a hard
place. Basic economics tells us that free trade areas between highly
industrialized, rich regions and economically underdeveloped poor
countries will tend to disproportionately favour the economically
strong, unless very specific measures are taken to ensure balanced
benefits. Certainly this has been validated by assessments of the
losses and gains following the entry into force of various WTO agreements.
In addition to tariff reduction, the EU is demanding that the ACP
agree to policy changes that are similar to its highly controversial
proposals within the WTO. An example in the negotiating mandate
is the EU proposals in relation to services liberalization. The
EU’s strategy is to ensure that what it might not get in the
WTO negotiations, it can try to secure through bilateral deals with
countries and regions, such as EPAs. Furthermore, if the ACP agree
to certain proposals in the EPA negotiations, the EU’s hand
in the WTO negotiations would be considerably strengthened.
As is the case in the WTO
where the new round of negotiations has been called the “development
round”, there is an attempt to disguise purely mercantilist
interests as development. It is (vaguely) said that EPAs will result
in increased flows of foreign direct investment and technology transfers
and there is an unspecified promise of better market access to the
EU. In fact, whereas policy makers have been unable to make any
convincing arguments about the benefits of EPAs, there is no doubt
about the negative impacts of EPAs on ACP economies.
EPAs : brave new
world or history repeated?
When the EPA option was first
tabled by the EU in the Cotonou negotiations, ACP countries put
up strong resistance to the proposal because of the many problematic
implications for their economies. Rather than agree outright to
EPAs as the framework for the trade negotiations, they argued for
“alternative trade arrangements” which would comply
with WTO rules – while stressing that certain WTO rules should
be reviewed in those areas which present difficulties for developing
countries. The expectation on the ACP side is that the EU and the
ACP Group should use their numbers (soon to be over 100 countries)
in the WTO to make a case for greater consideration of developing
country needs in the international trade regime.
The EU is one of the key
players in charting the direction of the WTO. Within the WTO, it
has become clear that the EU is more preoccupied with pushing the
concerns of big business (ie. accessing markets in other regions)
than seriously addressing development questions. The main reason
why EPAs – as envisaged in the EU negotiating mandate –
can never work for the ACP countries is because they are geared
towards meeting the EU’s external trade agenda to expand its
share of markets throughout the world. There is a clear coherence
and consistency between what the EU advocates in the WTO and what
it is advocating in EPAs.
As a result, it is not surprising
that the EU’s negotiating proposal envisages a situation where
ACP countries lift all restrictions to European exports to the ACP
regions, and where EU companies would be able to establish themselves
and do business freely in ACP countries. The negotiating proposals
do not make any mention of the EU’s (highly costly) protectionist
policies such as the notorious Common Agricultural Policy (CAP),
and its own unfair trade practices (eg. dumping). The EU mandate
is above all not about sharing and caring – it is about economic
expansion and domination. A brave new world indeed.
EPAs: a reality check
If the EPA proposal is bad
enough, what is even worse is the extent to which it has gained
acceptability. But it is worthwhile reminding ourselves in plain
language of exactly what EPAs – under the current EU proposals
- would mean.
• significant declines
in government revenue as a result of the elimination of import taxes
on EU goods. This will result in less budget funding for social
and human development and would probably also result in higher tax
burdens for citizens (eg. sales taxes) in order for governments
to make up for lost revenue. The EU has already stated that it is
not prepared to discuss new debt cancellation initiatives, as a
way of compensating for these revenue losses.
• closures of local manufacturing ventures, especially SMEs
as a result of competition from cheap subsidized imports. We are
likely to see increased job losses, unemployment, poverty and loss
of livelihoods. Industrialisation strategies to diversify and expand
economic production would also be undermined because of the difficulties
for new entrants to the market to compete.
• delivery of basic
social services in the hands of non-national private sector operators
as a result of selling off of essential public services to European
transnational corporations under privatization agreements: the provision
of health, education, and other basic social services will only
be available to those who can pay for them. Low income groups will
have less access to fewer basic social services.
• declines in inter-regional
trade as a result of “trade diversion”: countries of
the region will lose their markets in neighbouring countries. Instead
of regional cooperation, there will be increased competition between
countries of the region to attract “investment” from
the EU.
• opening up to European
competition for all government tenders: local companies who derive
their income from government contracts (supplies, services etc)
will have to compete with EU companies in bids and profits from
these transactions will be repatriated as a result of “investment
protection” deals.
• dumping of cheap
EU agricultural surpluses (dairy products, cereals, beef etc): will
threaten the viability of agriculture and agri-processing industries,
particularly for small scale farming sector which does not receive
state support. The result will be the collapse of the rural economies,
and increased impoverishment and food insecurity particularly amongst
women who are the backbone of the agricultural sector.
• losses and collapse
of local retail sectors in both goods and services because of the
entry into the market of European operators. The small and medium
sized businesses, where the majority of formal sector workers are
employed will be the most vulnerable because it is easy to undercut
them. Local economic actors, particularly SME’s and women
will be pushed to the margins as informal sector operators.
• investment measures
that prohibit restrictions on repatriation of profits will result
in continued capital flight from ACP economies. Government would
not be able to give different treatment to local entrepreneurs as
a means of supporting them to survive competition. There is likely
to be increasing resentment towards Europeans and European businesses
who will be seen as being treated more favourably and dominating
local economies. Social tensions and political conflict will increase,
because of widening class divisions between the haves and have nots
as wealthy local elites remain the sole local beneficiaries from
liberalization.
• dispossession of
indigenous land owners and lost livelihoods to give way to operations
such as European tourism and mining “investors.”
ACP countries have all experienced
these impacts to a greater or lesser extent as a result of trade
liberalization and deregulation. The human cost has been immeasurable.
EPAs are clearly not designed to reverse these impacts – rather
they will exacerbate them.
Is there a way out?
In EU-ACP policy making circles,
the debate on EPAs is currently about damage limitation; in other
words, how to ensure that the ACP will not lose out completely from
a free trade area/EPA arrangement. But the trade liberalization
/ WTO experiences to date beg the question: should the ACP be negotiating
EPAs at all? While trade preferences have done some good for ACP
countries, the economic relationship between Europe and the ACP
remains characterized by a very high level of dependency of ACP
countries on European markets. The ACP countries have identified
a fairly sound set of objectives as the basis for a trade agenda.
It would be nothing short of a miracle if these objectives could
be met through a free trade area with such an economically powerful
partner, who to all appearances, is particularly unsympathetic to
their special circumstances?
Policy documents that have
been developed within the OAU/AU for example have stressed that
the economic transformation and self-reliant development sought
by the ACP depend on strengthening economic ties and trade between
African countries and regions. Unfortunately, initiatives like the
EPAs and AGOA continue to entrench unequal relations with industrialised
nations always taking precedence over regional initiatives like
the Africa Economic Community plan that was signed by heads of state
in the late nineties. The result is ever increasing dependency on
rich countries – for aid, trade and investment.
The ACP, it would seem, are
obliged to enter into these negotiations because of pressure from
the EU and the WTO, not because they ever felt that these negotiations
were needed or in their interests. In fact the ACP Group had actually
identified the status quo (Lome trade arrangements) as the ideal
option. The timelines for completing the negotiations are determined
by imperatives set by the WTO (ten years); they have nothing to
do with the complex circumstances of different ACP countries and
sub-regions. The need to negotiate in fact stems from the fact that
the ACP are dependent on the EU for their export earnings, which
in many cases are the result of preferential treatment that is accorded
to them. But now the EU is exacting a heavy price to maintain these
preferences – a price which the ACP can ill afford to pay.
This is what is referred to as “adjustment costs” of
EPAs, which have to be borne by the entire society.
The challenge for the ACP
is not only to reduce dependency on the export of primary products
to the EU. It is to reduce dependency on the EU altogether. Certainly,
losing the EU’s preferential trade concessions would also
entail adjustment costs.
What governments have to
explain to their citizens is why and how the “adjustment costs”
of an EPA are less than the “adjustment cost” of losing
the special trade preferences. After all it has been rightly argued
that countries in Asia which had similar levels of development as
ACP countries at independence have now become economic tigers –
without any special preferences from the EU.
Social movements from all
sides have taken the position that within the WTO, there should
be no new round of negotiations until the WTO was reformed and development
issues were taken on board the WTO agenda more seriously. The reason
for this position is that it is overwhelmingly clear that developing
countries have very little power to influence the overall outcome
of negotiations.
The same reasoning should
apply to EPA negotiations. Why negotiate a liberalization agreement
with the EU, until it has made commitments to reform its own trade
policies and practices towards developing countries? Or until it
has agreed to support debt cancellation? Or until it has agreed
to substantially increase aid towards ACP economic revival?
ACP governments – individually
or collectively - do have the option to simply throw out the EPA
proposal and look for more viable options to deal with the economic
challenges in their countries, as well as a hostile global environment.
It is not an easy challenge, but the alternative is even less attractive.
Issues for civil
society: is another world possible?
Civil society and social
movements have for too long been neglecting issues of multilateral
trade. They have a duty to sound the alarm bell when in international
arena, their governments are being pressured or enticed into agreements
that are not in the national interest. They also have a responsibility
to push governments to address structural inequities and inequalities
between North and South in multilateral fora. Not enough pressure
is being put on governments to take a firm stand against ill conceived
initiatives coming from the North.
The ACP Negotiating Guidelines
clearly state that “EPAs will have to establish legitimacy
in ACP states, particularly as regards their contribution to sustainable
development of those countries.” It calls for the involvement
of all stakeholders in the negotiations process, public scrutiny
of the negotiations including parliamentary follow ups, and inclusive
and transparent negotiations process. But the stakeholders can not
be involved if they are not up to speed on and informed on the issues.
The EPA negotiations are
not simply an obscure diplomatic exercise. They are about lives,
livelihoods and our regions’ economic prospects. The idea
of setting up free trade areas with the European Union under the
current circumstances is - to put it bluntly - foolhardy. In matters
of trade, the EU’s indifference and insensitivity to the needs
of developing countries makes the whole idea of partnership a ludicrous
joke. It should be inconceivable that the EU can so ruthlessly exploit
its position of influence to make demands of countries where people
live on less than a euro a day simply to further the interests of
its multi-billionaire corporations. This is what is happening and
there should be a public outcry against it.
If the general public in
ACP countries were properly informed about the issues in the negotiations,
and they had a choice to accept or reject free trade areas with
Europe, there is a strong likelihood that they would reject EPAs.
After all, why is it that only the ACP have to face “adjustment
costs” while the EU barely needs to give such problems a second
thought? Foreign aid notwithstanding, the perception of the public
– and rightly so – is that developing countries get
a raw deal from the North. The hype about free trade and globalisation
being good for development is simply yet another example of double
standards and hypocrisy that the rich countries are becoming more,
rather than less famous for in their dealings with there poorer
countries.
Maybe it is about time we
just said “no.” And NO to EPAs is the ay forward.
This
is an abridged version of the article that first appeared as the
Mwengo EPP Feature Series no 1 in 2003. It is hereby reproduced
with their kind permission. At the time Nancy Kachingwe was the
Programme Officer at MWENGO, a reflection and development centre
for NGOs in East and Southern Africa.
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Editorial: EPAS: A ‘Partnership’ Between the Devil and
the Deep Blue Sea
Chandrakant
Patel
The launch of the “Economic
Partnership Agreements” between the EU and the ACP countries
represents yet another setback to Africa’s aspirations to
develop and free itself from the shackles of uneven trade. Since
the core objective of the EPAS is to introduce reciprocal trade
between uneven ‘partners’, it is inevitable that the
EU will secure further inroads into the ACP’s goods, services
and investment markets. A close examination of ACP countries export
performance in the EU markets over the past two decades (when they
enjoyed non-reciprocal access under various ACP/Lome schemes and
GSP) reveals that their market shares have fallen dramatically,
nullifying any advantage they may have enjoyed on account of these
special arrangements. The reasons for this are many but they principally
revolve around the near-complete absence of domestic supply capabilities
to benefit from the EU/Lome preferences. The policies needed to
strengthen domestic supply capacity and compete globally such as
incentives through targeted protection for local investment and
production -are the very policies and options being given up under
the EPAS arrangements.
While the EUs strategy is
clear, it is hard to discern any on the part of the ACP. For the
EU, EPAS are part of multi-pronged strategy to pry open ACP markets.
This includes an aggressive stance in the WTO complemented by EPAS,
bilateral trade negotiations, bilateral investment treaties (BITs)
and the instrumentalities of Bank-Fund lending to ensure liberalisation
and enhanced access for EUs investors and exporters.
The real question is: why
and how did the ACO countries acquiesce in this process and why
should one believe that the process can be influenced through, for
example, civil society’s participation in the many committees
and task forces established, belatedly to be sure, by the EU.
Richard Kamidza draws attention
to the myriad difficulties the civil society faces in making effective
contribution to the EU-designed and funded process for consultation.
But a more fundamental question, raised by Nancy Kachingwe is: should
the ACP be negotiating EPAS at all? Experience with Uruguay Round
(and now, the Doha Round) suggests that once a flawed and biased
agenda is agreed to and processes set in motion to meet the deadlines,
developing countries have very little, if any, leverage to influence
the outcome. The choice facing them is unenviable: to scuttle the
process and face concerted financial and trade retaliation or agree
to negotiate and secure chimeral gains but in reality immiserise
their economies through uneven outcomes.
Instead of seeking greater
participation and involvement, largely of a cosmetic variety, should
not the civil society reject any involvement in the EPAS process
and instead urge our Governments to reevaluate the fundamental premises
of EPAS? Economic groupings imposed from outside are likely to go
the same way as the many colonial inspired free trade arrangements
(such as, for example, the erstwhile East African Common Market)
which were designed to benefit the colonial commercial interests.
By calling such externally conceived arrangements ‘partnerships’,
are we not risking further economic and social regression?
Chandrakant
Patel represents SEATINI in Geneva and is editor of the SEATINI
Bulletin.
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