Analytical Note, March 2010
EPAs: The Wrong Development Model for Africa And Options for the Future.
The EPAs provide the wrong development model for Africa, and will jeopardize African countries’ development and regional integration prospects, rather than support them. Until now, only 10 out of 47 African countries have signed the EPA – most are dragging out the negotiations because they are reluctant or are resisting signing, due to their anti-developmental content.
The problematic conditions of the EPAs include zero tariffs on 70-80% of all tariff lines; no increase in any tariffs; weak safeguard; prohibition of new export taxes and duties and the pressure from the EU to launch into liberalization of other issues such as services, investment, competition and procurement.
The results are likely to be further deindustrialization; exacerbation of food insecurity; unemployment; loss of government revenues; and the opportunities for real regional integration in terms of cooperation in building production capacities would be lost.
This article was tagged: Agriculture, Competition Policy, Economic Partnership Agreements (EPAs), Government Procurement, Industrialization, Least Developed Countries (LDCs), Market Access, Regional Integration, Safeguards, Tariffs, Trade for Development, Trade Liberalization