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Friday, August 8, 2008 - Web posted at 9:38:40 AM GMT

EU softens on Africa's EPA demands

BRIGITTE WEIDLICH

THE next round of trade talks between developing countries and the European Union on new Economic Partnership Agreements (EPAs), might be more open to concerns raised by African, Caribbean and Pacific (ACP) nations so that a more favourable deal might be reached by the end of the year, a top official of the Trade and Industry Ministry said yesterday.

Speaking at the launch of a new booklet on the EPAs in Windhoek yesterday, Dr Malan Lindeque, Permanent Secretary in the Ministry, said the "negotiating climate" had changed for the better in the past few weeks as concerns raised by several African countries about unresolved issues were receiving more attention.

"After the European summer break, the next round will surely be more conclusive," Lindeque said.

"Namibia, South Africa and Angola's concerns are receiving attention.

The EPAs are to be signed at the end of this year, but they affect the sovereignty of a state and will have quite an impact on the existing Southern African Customs Union (Sacu) and the envisaged larger customs union planned in a few years by the 14-member Southern African Development Community (SADC)."

Namibia is a member of both bodies.

According to Dr Lindeque, the EU is Namibia's most important market with N$3 billion worth of exports annually, being N$2,4 billion of fish, N$300 million of beef and N$300 million of table grapes exported to the EU.

Independent trade expert Wallie Roux, who authored the booklet 'EPAs - the new Game of Divide and Rule', published by the Labour Resource and Research Institute (LaRRi), said should the EPA negotiations result in the breakup of Sacu, "the blame should be squarely placed at the doorstep of the EU."

Botswana, Lesotho, Namibia and Swaziland, the so-called BLNS countries, and South Africa are Sacu members.

"Another concern for Namibia is that the EU introduced a last-minute and non-negotiable clause, the Most-Favoured Nation (MFN) clause, into the text of the interim EPA.

This means that should Namibia in future hold trade negotiations with other countries that might offer better market access than the EU, these better access conditions should automatically also apply to EU countries," Roux explained.

Other unresolved concerns raised by Namibia, which it wants better terms for, are that it should remove restrictions on cereal imports from the EU, and that it should over time abolish infant-industry protection for locally produced goods like dairy and pasta products.

LaRRi researcher Herbert Jauch said it was time local labour unions and non-governmental organisations raised their voices with regard to the EPAs.

"The purpose of this booklet is to inform the broader public on the pros and cons of these future trade deals and the impact on developing countries including Namibia in order to stimulate public debate.

NGOs and the labour movements should speak out on the EPAs," Jauch urged.

The booklet is available free of charge from LaRRi.

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