EU Forcing Unfair Trade Rules on Poor Countries, says New Report

Leading Christian development agencies have accused the European Commission of using "strong-arm tactics" to force 76 African, Caribbean and Pacific countries to sign trade deals that they say will benefit rich nations at the expense of developing countries.

Tearfund, Traidcraft, Christian Aid, ActionAid and CAFOD voiced their concerns in a new joint report, 'Partnership under Pressure', assesses the European Commission's conduct in the current Economic Partnership Agreements negotiations. The report is being launched as representatives from the EU and ministers from ACP countries meet in Brussels this week to review progress in negotiations.

The main objective of the Economic Partnership Agreements between the EU and ACP countries was to foster economic development based on the principle of partnership but the five agencies say that the EU is "racking up a catalogue of abuses as negotiators vigorously pursue the negotiations using threats and manipulation which will hinder, not enhance, development in the ACP countries".

The report presents evidence that the EU has disregarded ACP institutions, processes and politicians, has taken a dismissive approach to pro-development proposals from the ACP and has repeatedly tried to force onto the table issues rejected by the World Trade Organisation. One example of this, it said, was the European Commission's efforts to manipulate the prospect of development aid linking future development assistance to the trade concessions it is requesting from the African, Caribbean and Pacific countries in the EPAs.

The report cites one EC Commissioner who cautioned African ministers that aid will match their level of 'ambition' in the EPA negotiations during a Joint Ministerial Trade Committee meeting in March.

Leaked EC documents, meanwhile, tell ACP countries that they can only expect development assistance to be provided in return for "clear commitments on rules [on investment]". The EC is also threatening ACP countries with more restrictions on market access for ACP exports if the end of 2007 deadline on EU-led EPAs fails to be met.

The five agencies said that in November 2006, west African negotiators asked for an extension in the negotiations to ensure that any agreement was pro-development, but were told by the EC that failure to sign EPAs on time would lead to higher tariffs on more than €1 billion - or 9.5% - of West African exports to the EU.

"The EU is using the promises of aid and the threat of loss of access to the European market to force ACP countries to sign a deal that will ultimately threaten the livelihoods of millions of poor people. This is unjust and unacceptable behaviour," said Mari Griffith of Tearfund.

Sophie Powell from Traidcraft said, "This report is a damning critique of the European Commission's approach to trade negotiations with some of the poorest countries in the world. The Commission may be desperate to get these deals through, but there is no excuse for the dirty tactics they are now stooping to in the name of development. Member states need to rein in the Commission."

The overall costs of Economic Partnership Agreements to African, Caribbean and Pacific member countries will run into billions of dollars according to recent research. Countries in eastern and southern Africa stand to lose $212m worth of trade with one another, while the EU will increase its exports to the region by $1.1bn, the agencies said. Zambia is expected to lose $15.8m - enough to cover the Zambian government's annual spending on HIV/AIDS. However, in contrast EU exporters stand to net $1.9bn in west Africa alone.

"These agreements will determine the pattern of trade relations between the EU and the ACP countries for decades to come," said Martin Gordon, international campaigns manager at Christian Aid.

"African Trade Ministers have repeatedly issued statements raising fundamental concerns with the process of negotiations as well as with the impact of EPAs on development. They have called for all possible alternatives to EPAs to be explored, but their requests have been routinely ignored. This week in Brussels, the EC must not be allowed to shamelessly bulldoze these agreements for their own benefit," he added.