Campaign Information

The European Union is pushing 76 countries in Africa, the Caribbean and the Pacific (ACP) to accept unfair trade deals proposed as part of new so-called ‘Economic Partnership Agreements’(EPAs). These countries – some of the poorest in the world – are under pressure from Europe as it rushes to complete these deals by the end of 2007.

These deals are currently set to put jobs and economies at risk in developing countries, reduce the money they have to spend on healthcare and education for poor people, as well as damage their environment. But there’s still time to make trade deals that work for development and the environment.

The Trade Justice Movement calls on the EU to listen to the repeated concerns of poor countries. The EU must stop its unfair trade deals and work with these countries to provide alternative deals that will lead to sustainable development and help to eradicate poverty.

What’s wrong with these European trade deals with ACP countries?
Trade with the EU can help to lift millions of people out of poverty, but only if it is governed by fair rules which allow the growth of farming and industry in developing countries. If new trade agreements are skewed in favour of rich EU countries, then they are more likely to lock poor people into poverty and damage their environment.

The existing trade rules between EU and ACP countries, although far from perfect, allow ACP countries special access into European markets for certain products, but don’t require them to open their markets to competition from the EU.

However, the EU is now pushing hard for these new trade agreements to open up ACP countries to competition from technologically advanced European industries and heavily subsidised European farmers. This would threaten rural livelihoods and the hopes of many millions of other workers. It would also deny ACP countries the right to protect their new, future and established industries, a right that has been used over many years by rich European countries in building their developed economies. ACP countries would prefer trade agreements that take into account their particular development needs.

So far, most ACP countries have resisted pressure to accept the new trade agreements proposed by the European Commission (EC) because they won’t work for sustainable development. But the EU has threatened to end the special access they currently have to European markets if they don’t sign an EPA by the end of 2007, and to only give aid that supports trade to those that do sign. This is despite the EU not honouring its promise of offering alternative agreements that would ensure continued levels of access to EU markets.

Given the EU’s push to conclude the negotiations, their strong negotiating power, and the armtwisting methods they’re using, ACP countries are finding it increasingly difficult to resist this pressure.

The EU’s position
The governments of the EU have delegated responsibility to negotiate trade agreements to the European Commission (EC). The EC maintains that EPAs are tools for development. However, the EC has not only dismissed proposals from ACP governments, it is also pursuing issues as part of the negotiations which developing countries have already rejected at the World Trade Organisation, such as agreements on investment and competition policy.

The EC has hoped to conduct these negotiations away from the general public’s attention. Our Global Day of Action will demonstrate that the citizens of the EU and the ACP do not want unfair deals which could lock people into poverty for generations.

UK government position
The UK government has a relatively progressive public stance on these negotiations, stating each year since 2005 that ACP countries should not be forced to open up their markets. While this is welcome, the Trade Justice Movement continues to call on the UK government to translate its words into action by taking every opportunity to persuade other EU countries to stop unfair trade deals going ahead and for the EC to provide alternative trade deals that are good for development and the environment in ACP countries.

Why Germany is so important
The German government could have far-reaching influence on shaping EU policies as holder of the EU presidency and as host of the G8 summit during the first half of 2007.

It has a real opportunity to influence other EU Member States and the EC to ensure that trade agreements with developing countries contribute to the eradication of poverty and promote sustainable development. This is particularly relevant as Chancellor Merkel has publicly stated her intent to focus on a genuine partnership between developing countries in Africa and the EU.

European NGOs, including the Trade Justice Movement, joined together to call on the German Chancellor to take positive action in a letter in February 2007. The reply from the German government indicates that we need to put more public pressure on Germany to use its powerful influence to ensure these deals deliver trade justice.

ACP governments’ position
ACP Ministers and ACP civil society organisations have repeatedly voiced their concerns about the impact of the proposed agreements on their economies, environment and the livelihoods of their people. Official statements by ACP Ministers have pointed in particular to the inadequate attention paid by the EC in the negotiations to the development aspects of the agreements.

In 2006 African Union Trade Ministers published a Declaration which stated:
“We express our profound disappointment at the stance taken by negotiators of the EC in so far as it does not adequately address the development concerns that must be the basis of relations with Africa. We urge our negotiating partners to clearly demonstrate the development content of the proposed agreements…” (African Union Trade Ministers Declaration on EPAs, 14 April 2006, Nairobi)

Independent reports, such as the one published in February 2007 by the United Nations Economic Commission for Africa1, confirm ACP countries’ lack of confidence in EPAs to be pro-development and the EC’s failure to address these concerns in the negotiations.

1.UNECA, ‘Progress Review of Economic Partnership Agreements (EPAs) Negotiations in Africa’, 14 February 2007

“We won’t sacrifice future generations for a bad economic partnership agreement.”
Hon. Lotoala Metia, Tuvalu’s Minister of Finance, Economic Planning, and Industries. February 2007

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