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Unfair trade deals: time to start over

Four months on from the official deadline for concluding Europe's trade deals with 77 of the world's poorest countries and they're far from wrapped up. Many developing countries are calling for the deals to be renegotiated and the European Commission's approach to the negotiations has been widely condemned.

20 May 2008

Campaigning against EPAs

The 77 poor countries involved in negotiating Economic Partnership Agreements (EPAs) were divided in to 6 regions to negotiate the deals. As a result of the European Commission's bullying and manipulation most of the regions have fallen apart and failed to sign up as a block.

  • Only one region (the Caribbean) has agreed an EPA in its original regional block.
  • In total, less than half the developing countries involved have initialled any deal.

At the end of 2007 a number of countries felt they had no choice but to sign up to what are known as "interim" deals because this was the only way the European Union would guarantee their exports to Europe beyond the official deadline.

Many of those countries are unhappy with the content of the interim deals which they signed under pressure and want to renegotiate but the politicians and officials of the EU are refusing to budge.

Losing the propaganda war

Commentators and negotiators have strongly criticised the European Commission’s approach to the negotiations as bullying and aggressive.

In a recent interview for Radio Australia the Pacific's lead negotiator, Jo Keil gave a damning condemnation of the EC's rude and dogmatic approach to the negotiations.

"None of that will ever happen again to the Pacific to suffer that indignity that was forced upon us by Commissioner Mandelson", said Keil.

The Pacific region has not initialled a deal with Europe.

In a recent call to action, the Africa Trade Network, an influential grouping of workers, farmers and women’s group said

"When it became clear that no African regional bloc would agree to its demands, the European Commission, with the active support of its member states, resorted to blatant divide-and-rule tactics."

Even the European Commission itself has admitted to losing the propaganda war on EPAs.

Jobs at stake

But there's far more than professional reputation and a war of words at stake. Campaigners and civil society in developing countries are opposed to the deals because of the immense risk they pose to their future.

The dramatic pace and scope of trade liberalisation required by the current EPAs could leave industries in tatters and result in thousands of job losses and a huge decline in government income. A far cry from the pro-development outcome that EPAs were supposed to deliver.

The President of Malawi has spoken out strongly against EPAs saying Malawi will not sign a deal that would be bad for the county's economy.

"If the EPA is so good, why do they have to force people to sign," said President Bingu wa Mutharika.

And in a joint statement the African Ministers of Trade have called for the controversial elements of EPAs to be renegotiated.

So what happens next?

The European Commission is intent on pushing forward with the existing deals: securing ratification of the interim deals and pursuing negotiations on further areas.

Traidcraft is working with European and African campaigners to halt the deals in their current form and allow for them to be renegotiated according to the needs of poor countries.

We're calling on:

José Manuel Barroso, the President of the European Commission to use his influence to get the deals renegotiated.