Implications of new trade agreements examined

The business implications of the new Economic Partnership Agreements (EPAs) between Eastern and Southern African countries and the European Union (EU) are being discussed in Addis Ababa, Ethiopia, between 9 and 10 September 2008.

Around 60 senior representatives from trade and industry ministries in Eastern and Southern Africa as well as private sector representatives will look into enhancing private sector awareness on the initial agreement made by these countries in their negotiations with the EU.

“For businesses in African, Caribbean and Pacific countries, preferences provided under the trade agreements known as Lomé/Cotonou have given them advantages to support themselves through commercial activity,” said Veniana Qalo, an Economic Adviser at the Commonwealth Secretariat. “But, aid and preferential exports are eroding as small trading economies are urged by economic orthodoxy and international organisations to embrace the global economy.

“Because of the challenges arising from these new negotiations, this is an important time for the notable players from Eastern and Southern Africa to meet and come up with concrete strategies on how they can meet these concerns and benefit from the EPAs.”

Public sector participants will have opportunities to share information with the private sector about what has been negotiated in the context of the interim EPA agreements, and what the business implications are that stem from these negotiations. They will also focus on what could still be negotiated in order to improve the market access for key sectors.

“Strengthening the understanding of participants at this event on what are complex issues is a fundamental goal of this conference. By its conclusion we want all participants to be better equipped to address decisions which will have an enormous impact on their countries’ trading relationships and consequently on their development as a whole,” added Ms Qalo.

Representatives from countries were invited to submit papers on both their own domestic and also regional concerns over the trade agreements.

The paper from Seychelles states: “The EPA will open up the domestic market to duty free goods originating from the European Union, which may render the locally produced goods uncompetitive in relation to cheaper goods from the EU and in turn have a negative impact on the Seychelles’ economy.” These and other concerns are being shared among participants over the two-day event.

The Secretariat is collaborating with the International Trade Centre (Geneva) to facilitate this private-public sector dialogue.

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