Maravi

Govt to ensure EPAs become instrument for development

Govt to ensure EPAs become instrument for development
Written by Kabanda Chulu
Wednesday, November 05, 2008 5:34:46 PM

THE government has assured that revenue impact of the market access offer recently signed with the European Union (EU) will be minimised by excluding liberalisation of products that attract most revenue. And Ministry of Commerce, Trade and Industry permanent secretary Davison Chilipamushi has said the government is committed to improving current terms and conditions to ensure that Economic Partnership Agreements (EPA) become an instrument for development.

Explaining the market access offer under the interim EPA that was signed last month with the EU, Chilipamushi said the government took careful consideration of the interests of various constituencies, especially industry and agriculture sensitivities, food security and revenue losses.

“These have been safeguarded through a cautious approach with regard to the level and pace of liberalisation and government has also ensured that the revenue impact of the market access offer is minimised by excluding from liberalisation the products which attract most revenue and by delaying as much as possible liberalisation on products that attract 25 per cent customs duties,” he said.

Chilipamushi said the market access offer was formulated in collaboration with representatives from the agriculture and manufacturing sectors, civil society and all relevant government institutions. He explained that a list of products which are produced or could be potentially produced by Zambians that would be exposed to competition from European products have been excluded from liberalisation.

“This list includes agriculture products, for example, dairy products, some meat products, sugar, cereals, processed food including oils, honey, flour and beverages and also key manufactured goods such as engineering products, wooden products, plastics and rubber, textiles and clothing products have been excluded from liberalisation,” Chilipamushi said.

“And liberalisation for non-excluded products will not start before 2014 and capital goods and raw materials necessary for economic development will be liberalised first, with intermediate goods gradually following while finished and other goods will be liberalised starting 11 years from 2009 and the overall process will be completed in 15 years (2015).”

He made it clear that the government initialed the market access offer on the basis of considerations that there would be manageable revenue implications and protection of key sectors. Other issues which the government considered were the benefits of increased quota allocated to Zambia for sugar, amounting to 32,500 metric tonnes, a development that would also benefit small-scale farmers taking part in the out grower scheme. Chilipamushi said the government was committed to addressing the challenges that would result when EPAs are implemented.

“The challenges of ensuring that the EPA is an instrument for development still remains and government is fully committed to improve current terms and conditions such as the rules of origin and the safeguards provisions in the context of the final EPA text,” said Chilipamushi. “Government is also working towards developing projects that will make the private sector more competitive in the export market.”

But civil society organisations in the country have condemned the government for signing the market access offer, stating that Zambia should have negotiated a development cooperation agreement that could assist in solving supply-side constraints faced by most producers such as lack of infrastructure, poor road networks and value addition oriented industries.

“EPAs will give Zambia and other LDCs full market access to the European market but at the same time the countries are forced to open up their own markets during an extremely short period of time. Zambia is among the poorest countries in Africa and with the interim EPA, small-scale farmers and infant industries in the country will be forced to compete on more or less equal terms with European large scale agriculturists and big corporations that are highly subsidized,” the CSOs stated.

The CSOs stated that Zambia already has a non-reciprocal free access to EU markets through a special arrangement called Everything But Arms (EBA) and this arrangement offers better opportunities for Zambia to continue with the positive slide of development which the country has enjoyed in the past seven years.

“For the very same access to EU’s market, Zambia now faces the risk of having to pay a high price in the form of devastated small farms and collapsed local industries,” they stated. The CSOs that issued the statement include, the Civil Society Trade Network of Zambia (CSTNZ), Jesuit Centre for Theological Reflection (JCTR), Consumer Unity Trust Society (CUTS), Pelum Association and the Eastern and Southern African Farmers Forum (ESAFF).

Labels: DAVIDSON CHILIPAMUSHI, EPAs, EU

posted by MrK @ 5:36 PM