As the January 1st deadline for concluding negotiations on Economic Partnership Agreement (EPAs) has passed, 20 African and Pacific countries have initialled interim EPAs, which cover trade in goods. Many have done this because of the extreme pressure that they have found themselves under from the European Commission in recent months. 15 Caribbean nations have also signed ‘full EPAs’, which includes agreements on issues such as investment and trade in services.
We are extremely disappointed at the extent of the anti-development content in these interim agreements, particularly since the principal objective for the negotiations was to deliver deals that would support development in some of the world’s poorest countries. We are also appalled by the European Commission's conduct during the negotiations. However your prayers and campaigning have placed those involved in the negotiations, especially in the UK, under increased scrutiny, and potentially prevented the Commission from pursuing an even more aggressive agenda which could have been even more damaging.
As negotiations have reached the deadline, governments in ACP countries have found themselves under significant pressure from the European Commission, with some countries threatened with the risk of reduced access to European markets or diminishing levels of aid if they did not sign an EPA by January 1st. Faced with this threat many have had little choice but to sign an interim agreement or face the threat of disastrous impacts on local livelihoods and industries.
Our initial analysis suggests that the interim agreements will seriously undermine economic development, with most countries expected to rapidly liberalise their markets, and sacrifice the opportunities to use economic policies in the future that support infant industries – a policy choice that Europe itself made so that we could develop.
Moreover the much vaunted aim of the European Commission to increase regional integration through these negotiations is also in tatters, as it has pursued a policy of reaching deals with countries and sub-regional groups which will inevitably lead to increased trade barriers between neighbours.
While at times, we’ve welcomed the progressive, pro-development agenda the UK government has adopted, in recent months it has started to support agreements that in many ways contradict its own policy positions. Equally a lack of leadership across the UK government means these deals now have the potential to undermine the government’s broader development agenda.
As we head into 2008, Tearfund will continue to monitor developments within the outstanding negotiations, and we call on the UK government to support the calls of ACP trade ministers to revisit the provisions within the text which may be incompatible with their own development goals. We also believe it is vital to have an effective monitoring and review mechanism that enables ACP countries and regions to assess whether EPAs are contributing to their economic development.
To read a more detailed assessment of the outcomes click here.