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Fee calls for new trade regime between Europe, ACP countries

Fee calls for new trade regime between Europe, ACP countries
By Chibaula Silwamba
Monday October 01, 2007 [04:00]

EUROPEAN Union head of delegation in Zambia Dr Derek Fee has said there is need for a new trade regime between European countries and the African, Caribbean and Pacific (ACP) countries. And Netherlands Ambassador to Zambia Eduard Middeldorp said it was important that Parliament and the Zambian government accounts for the donor aid flowing into the country.

During the newsmakers forum organised by the Press Freedom Committee of The Post newspapers at Chrismar Hotel last Saturday, Dr Fee said parties to the negotiations about the EPAs were close to a final agreement.

“At the time of Cotonou Agreement, we told these (African, Caribbean and Pacific) countries that we have a trade waiver from the World Trade Organisation (WTO) which would expire on January 1, 2008 and that we would have to, in the intervening period, negotiate EPAs with these 77 ACP countries which conform to WTO rules.

Now some people will say well, why can’t we extend on that date because there are several very sensitive products which are entering the EU at the moment from the 77 ACP countries that other people in the rest of the world are just about to make a complaint to the WTO.

In particular bananas, which the colleagues in Latin America are ready to put a complaint to WTO, sugar which the Brazilians are interested in as well,” he said.

“So we have to do something in terms of new trade agreements by 1st January, 2008 and we have been negotiating this for the last seven years and we are getting very close to final agreement.”
Dr Fee said there would be no chance of the European products flooding the Zambian market.

Dr Fee said the EU was the world’s biggest trading block and wanted to import more commodities from ACP.

“EPAs will set our framework for trade with Africa, Caribbean and Pacific countries for the next foreseeable future. We have to look at how we can help all ACP countries to develop their private sector and their own supply side not only to export to us.

The intra regional trade is potentially a lot more lucrative to countries of COMESA group than increased trade with the EU,” he said.

Dr Fee said the EU in the next few weeks would have to discuss with commerce minister and President Mwanawasa on what EPAs meant for Zambia.

But several people that contributed demanded that the EPAs should not go ahead because they would disadvantage Africa.

They complained that European farmers would get subsidise unlike their African counterparts hence the trade arrangement would be not be balanced and Europe would benefit more than Africa.

Meanwhile, Dr Fee said the EU was the biggest donor in Zimbabwe at the moment.

“This year we are giving 197 million pounds aid between European Commission and the member states in aid to Zimbabwe. That aid is absolutely directly given to Zimbabweans, I can tell you that Zimbabweans on the ground see European aid because it’s given to them directly. We are also the biggest donor of food security at the moment in Zimbabwe,” he said.

“What is the situation between the EU and Mugabe? We have been saying this for a long time and we will continue to say there are no economic sanctions from EU against Zimbabwe. In fact, Zimbabwe has a positive balance of payments with the EU, in other words they sale more to the European Union than they import.

“What we have are sanctions against Robert Mugabe (Zimbabwe’s President) and 173 other named individuals including Mugabe’s wife Grace and his main supporters within ZANU PF. So there are travel restrictions to the EU only to those people.”

He also said the Portuguese President would make a decision on whether or not to invite President Mugabe to the EU/Africa summit in Portugal in December.

And Ambassador Middeldorp said it was important that Parliament and the Zambian government account for the donor aid flowing into the country.

“We are really trying as embassies and representatives here to know where our money is going. Yes, we are visiting rural areas to see where our aid is going,” he said. “But it’s not just the donors being accountable, it’s definitely also a matter of government of Zambia and Parliament in Zambia to be accountable for the aid flowing to Zambia.

Ambassador Middeldorp said there was need to improve the health and education sectors.

He added that private sector development was important for Zambia.
“We are involved in private sector development in the sense that we are trying to create together with the Zambian government an environment where business is possible and profitable,” he said.

He also said it was difficult to involve foreign companies to explore minerals if they were offered very low percentages.

“The Zambian government is presently negotiating with a lot of these companies to make more profits for Zambia and I think that is the way forward,” he said.

Ambassador Middeldorp said donor countries had problems to align their aid with the local development plans, such as the Fifth National Development Plan (FNDP) because they had their own areas of priority.

Labels: ACP, DEREK FEE, EU

posted by MrK @ 9:11 AM