Alternative Africa

Top Menu

  • Home
  • About Us
  • Privacy Policy
  • Terms of Use
  • Contact Us

Main Menu

  • Home
  • Arts & Culture
  • Business
  • Environment
  • Politics
  • Sports
  • Reports
    • Africa-Observers
      • Read Reports
      • Submit a story
  • MORE
    • Health
    • News Now
    • World
    • Technology
Sign in / Join

Login

Welcome! Login in to your account
Lost your password?

Lost Password

Back to login
  • Home
  • About Us
  • Privacy Policy
  • Terms of Use
  • Contact Us

logo

Alternative Africa

  • Home
  • Arts & Culture
  • Business
  • Environment
  • Politics
  • Sports
  • Reports
    • Africa-Observers
      • Read Reports
      • Submit a story
  • MORE
    • Health
    • News Now
    • World
    • Technology
  • U.S. formally authorizes the single shot jab, J&J Covid-19 vaccine

  • British swimmer who once represented Great Britain now lives on London streets

  • I want my legacy to be about character, not boxing-Anthony Joshua

  • Ghana expecting 12.4 million doses of COVAX vaccine

  • Nigeria unveils organic fertilizer made from Rabbit waste

BusinessNews Now
Home›Business›EPAs: Trade catalyst or neocolonialist tool?

EPAs: Trade catalyst or neocolonialist tool?

By alternativeafrica
November 1, 2017
740
0
Share:

The European Union (EU) argues its economic partnership agreements (EPAs) with African countries contribute to development and poverty reduction.

It claims that by giving them duty- and quota-free access to the EU market, the EPAs directly benefit African manufacturers, service providers and farmers, along with their communities. However, the agreements are reciprocal, also requiring the opening of African markets to goods from the EU, which raises fears that African countries will not be able to compete against their European rivals.

Since colonial times, African countries have been structured to supply primary goods or raw materials to European ones, which then exported manufactured products back to the continent. Despite decades of political independence, the structure of trade between the two continents has not changed much.

In 2016, for instance, 94% of EU imports from West African countries were primary goods, while 53% of West African countries’ imports from Europe were manufactures. This is not surprising. European countries are advanced economies.

It is doubtful that African countries would be able to develop a robust industrial base in the face of cheaper and better quality European imports. But could they at least be strong enough over time for their own markets?

Without some trade protection measures, such an aspiration could be in vain. Many of today’s advanced economies employed protectionist measures on the road to development, so why should African countries do differently?

The EU argues these concerns are baseless, citing protection clauses in the EPAs that provide long transition periods for sensitive and infant industries. Participant countries can also ask for a review when problems arise during implementation of the agreements.

This sounds good in theory but may not be so in practice. Resolving these issues tends to take time, and the technological gaps are too wide to be bridged quickly enough, even if the EU were being altruistic.

When pushed, the EU likes to point out the EPAs were the product of intense negotiations. How likely is it, though, that the outcome would be balanced when these countries remain dependent on EU aid? Never mind that their negotiating capacity was similarly enhanced with EU help. Little wonder then that commentators regularly condemn the EPAs as neocolonialist tools, reminiscent of the European scramble for Africa.

Ratification delayed

Ratification of the EU-West Africa regional EPA is currently being held up by Nigeria and The Gambia. Naturally, the EU argues the delay comes with costs for those yet to sign, such as not benefiting from duty-free access to the EU market, for instance.

The Gambia has recently embarked on a process that could eventually lead to ratification, but Nigeria currently looks unlikely to sign. Its manufacturers are particularly adamant that the EPA would impede what is already slow progress in their industries. There is also the issue of customs and excise revenue that would be lost in the event of assenting to the EPA.

Recognising that revenue loss concerns might be a deal breaker, the EU made provisions for about $9bn to be shared among the 15 West African countries concerned over a five-year period as compensation. However, this is a paltry sum in comparison to what a country like Nigeria could lose in duties alone.

The EU says it is willing to discuss and find solutions to these concerns, provided they are raised in a detailed and clear manner and really relate to the EPA. In any case, West African countries keen on the EPA will not necessarily be affected by the holdup.

For instance, Ghana and Côte d’Ivoire, which are highly reliant on cocoa exports to Europe, have already signed interim bilateral EPAs with the EU, pending the adoption of the region-wide agreement. However, the revenues from these duty-free primary goods exports will probably do little to allay the effect of European manufacturers entering their markets. African countries should be savvier. 

Rafiq Raji

SHARE ON:
TagsAfricaBreakingBusinessEconomic Partnership AgreementsEPAEUFinanceNews
Previous Article

Africa welcomes renewables revolution

Next Article

SA football boss Danny Jordaan denies raping ...

0
Shares
  • 0
  • +
  • 0
  • 0
  • 0
  • 0

alternativeafrica

Related articles More from author

  • News NowPolitics

    Ethiopia names Abiye Ahmed new prime minister

    March 28, 2018
    By alternativeafrica
  • News NowWorld

    Spanish police seal off polling stations in Catalonia

    September 30, 2017
    By alternativeafrica
  • News Now

    ANC Decides To Remove South African President Jacob Zuma From Power

    February 13, 2018
    By alternativeafrica
  • News Now

    Egypt mosque attack: Sisi gives military three months to secure Sinai

    November 29, 2017
    By alternativeafrica
  • News Now

    What The Conventional Curriculum Isn’t Telling Us

    November 6, 2017
    By alternativeafrica
  • News NowWorld

    Ex-Muslim Brotherhood leader Mahdi Akef dies at 89

    September 22, 2017
    By alternativeafrica

Leave a reply Cancel reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

You might be interested

  • AfricaBusinessNews Now

    AfDB, Entreprenarium partner empower 1,000 women entrepreneurs in Africa

  • AfricaHealthNews NowWorld

    Coronavirus: Beware of using air conditioning in a close, crowded environment, Harvard scientist warns

  • AfricaBusinessNews Now

    Looming Crisis: South African province, Gauteng to ban foreigners from doing business in townships

Timeline

  • February 28, 2021

    U.S. formally authorizes the single shot jab, J&J Covid-19 vaccine

  • February 28, 2021

    British swimmer who once represented Great Britain now lives on London streets

  • February 28, 2021

    I want my legacy to be about character, not boxing-Anthony Joshua

  • February 28, 2021

    Ghana expecting 12.4 million doses of COVAX vaccine

  • February 27, 2021

    Nigeria unveils organic fertilizer made from Rabbit waste

  • Popular

  • Comments

  • Lagos govt confirms first case of deadly coronavirus infection in Nigeria

    By alternativeafrica
    February 28, 2020
  • Keynote Address of President Nana Addo Dankwa Akufo-Addo at 2018 Oxford Africa Conference

    By PSJ Africa
    May 14, 2018
  • Morocco begins regional integration by connecting Casablanca Airport with High Speed Train

    By alternativeafrica
    January 4, 2020
  • Kenyan govt pressure Facebook for data on Kenyan users

    By alternativeafrica
    November 20, 2019
  • Nigeria: 32,000 capacity Lagos rice mill to start production in 2020

    By alternativeafrica
    December 23, 2019
  • Ado zagi
    on
    January 12, 2021

    Nigeria: EFCC Academy to begin award of degree

    Diploma leave areply from
  • Ethiopia joins Africa's Artificial Intelligence revolution | Alternative Africa
    on
    October 2, 2020

    Spending on Artificial Intelligence Systems in Africa, Middle East to top $374 million in 2020

    […] Many African countries ...
  • The 5 most popular Africans 2020
    on
    September 25, 2020

    Celebrating Congolese doctor Jean-Jacques Muyembe, the man behind breakthrough of Ebola cure

    […] Dr. Jean-Jacques Muyembe ...
  • Millitants in Central Mali Set Jail Ablaze in Attack Killing Two | taktik(z) GDI (Government Defense ...
    on
    August 11, 2020

    Fifteen gendarmes killed in another attack on Mali camp

    […] attack fol­lowed a January ...
  • Millitants in Central Mali Set Jail Ablaze in Attack Killing Two
    on
    August 11, 2020

    Fifteen gendarmes killed in another attack on Mali camp

    […] attack followed a ...
AlternativeAfrica.com is an independent Pan African News Website dedicated primarily to influencing the negative narratives about Africa. We hope to do this by focusing and showcasing the many developmental strides sweeping across the continent.

Read more >>>

Contact Info

  • info@alternativeafrica.com
  • Recent

  • Popular

  • Comments

  • U.S. formally authorizes the single shot jab, J&J Covid-19 vaccine

    By alternativeafrica
    February 28, 2021
  • British swimmer who once represented Great Britain now lives on London streets

    By alternativeafrica
    February 28, 2021
  • I want my legacy to be about character, not boxing-Anthony Joshua

    By alternativeafrica
    February 28, 2021
  • Ghana expecting 12.4 million doses of COVAX vaccine

    By alternativeafrica
    February 28, 2021
  • Lagos govt confirms first case of deadly coronavirus infection in Nigeria

    By alternativeafrica
    February 28, 2020
  • Keynote Address of President Nana Addo Dankwa Akufo-Addo at 2018 Oxford Africa Conference

    By PSJ Africa
    May 14, 2018
  • Macron in Ivory Coast to launch anti-terrorism academy

    By alternativeafrica
    December 21, 2019
  • Kenyan govt pressure Facebook for data on Kenyan users

    By alternativeafrica
    November 20, 2019
  • Ado zagi
    on
    January 12, 2021

    Nigeria: EFCC Academy to begin award of degree

    Diploma leave areply from
  • Ethiopia joins Africa's Artificial Intelligence revolution | Alternative Africa
    on
    October 2, 2020

    Spending on Artificial Intelligence Systems in Africa, Middle East to top $374 million in 2020

    […] Many African countries ...
  • The 5 most popular Africans 2020
    on
    September 25, 2020

    Celebrating Congolese doctor Jean-Jacques Muyembe, the man behind breakthrough of Ebola cure

    […] Dr. Jean-Jacques Muyembe ...
  • Millitants in Central Mali Set Jail Ablaze in Attack Killing Two | taktik(z) GDI (Government Defense ...
    on
    August 11, 2020

    Fifteen gendarmes killed in another attack on Mali camp

    […] attack fol­lowed a January ...

Photostream

    Follow us

    • Home
    • About Us
    • Privacy Policy
    • Terms of Use
    • Contact Us
    © Copyright Alternative Africa 2019. All rights reserved.