European Commission pressures countries to sign trade deals

With barely two weeks left before the deadline, and with no alternative on offer, a dozen countries in Africa, the Caribbean and Pacific (ACP) have decided they have no choice but to initial "interim EPA" deals with Europe in order to safeguard their trade in 2008.

The agreements signed so far commit poor countries to far-reaching liberalisation of their trade in goods which could have a devastating effect on their industries.

However, most developing countries have so far avoided making commitments to open up their services and investment sectors – controversial areas which the European Commission (EC) had been strongly pushing for, but which developing countries have long resisted both in EPA negotiations and at the World Trade Organisation.

Traidcraft believes that by refusing to guarantee that their trade with Europe would not be disrupted if they failed to reach an agreement by the end of the year, the EC has given many developing countries no choice but to initial potentially damaging trade deals.

For example, Kenya was unwilling to sign to sign a deal, but faced with the overnight destruction of one of their most successful export businesses – fresh flowers – they had little choice.

This kind of impossible choice within so-called "partnership" agreements, has led to flaring tempers in Lisbon, where leaders have gathered to discuss the future of EU-African relations. President Abdoulaye Wade angrily told the assembled press, "it's clear that Africa rejects EPAs… we are going to meet to see what we can put in place of EPAs."

Several other developing countries, including some of the strongest economies in Africa such as South Africa, Namibia, Ghana, and Nigeria, have stated that they want nothing to do with the deals.

Divide and rule

The EC proposed the "interim EPAs" last month, when it became clear that it would not get any region to sign full EPAs before the end-of-year deadline. However, it is still determined to negotiate deals that include opening up government contracts and services like banking and telecommunications.

The "interim EPAs" include commitments to negotiate these extra areas in 2008. Traidcraft strongly believes this will even further undermine ACP countries' own development plans. The EC's tactics of picking off individual countries instead of continuing to negotiate with larger regions has also massively weakened one of the original aims of EPAs which was to promote regional markets for long-term development.

Traidcraft's Policy Adviser Sophie Powell said, "These agreements are supposed to be designed to help poor countries develop and foster regional trade. But throughout the negotiations the EC has refused to listen to what poor countries need and has bullied and pressured them in to signing up to deals that bear no resemblance to development deals."

Traidcraft will continue to oppose any attempts to force more countries to sign more extensive deals next year.

Countries that have signed or initialled an EPA