EPAs threaten diversification – CSPR

EPAs threaten diversification – CSPR
By Kasapo Chibwe
Tue 18 May 2010, 07:20 CAT

CIVIL Society for Poverty Reduction (CSPR) executive director Patrick Mucheleka says the Economic Partnership Agreements (EPAs) threaten the diversification of Zambia’s economy from mining to other sectors including agriculture, as the country will not be able to compete evenly with the European Union (EU) products.

Mucheleka yesterday said Zambia mainly relies on the export of minerals, therefore its diversification efforts especially in the agricultural sector stand threatened by the EPAs.

“The implication of the EPAs especially on agriculture which remains the major activity of the people is that our farmers cannot evenly compete with the farmers from the EU who are heavily subsidised,” he said.

Mucheleka explained that on average, the EU spends over 365 billion Euros per year on farm subsidies under the EU Common Agricultural Policy.

He further explained that in the case of Zambia, where there was no form of major support to make them more competitive, the situation created was a clear elimination of Zambian farmers from being beneficiaries in any meaningful way and this would only go towards the perpetuation of high levels of poverty.

Mucheleka said that the nature of the EPAs in the current form did not complement Zambia’s effort to achieve the Millennium Development Goal targets and instead pushes the MDGs further than can be imagined.

“Efforts of developing countries through national development plans and commitment to international responsibilities like the attainment of MDGs show a great degree of willingness on the part of Africa, Caribbean and Pacific Countries (ACPs) to develop and alleviate poverty by 2015,” said Mucheleka.

He said ideas like the EPAs were being sold as developmental tools and sound to be catalysts of development while in practice they promoted commercial interests of the EU to the detriment of national development and poverty reduction.

“The EPAs, which are seen as instrument for development, appear to have contradicted with the 8th MDG which is to achieve global partnership for development and one of its targets is to develop further an open trading system that is rule based, predictable and non-discriminatory and this includes a commitment to, development and poverty reduction nationally,” he said.

Mucheleka explained that the ACP countries’ interest on the EPAs was premised on the understanding that they should be viewed and seen to contribute to the reduction of and eventual eradication of poverty through the establishment of a trade partnership consistent with the objective of sustainable development, the MDGs and Cotonou agreement.

"The current EPAs are based on the principles of reciprocity as opposed to the non-reciprocal preferences which implies that all countries should reduce import duties and other trade restraints in return for comparable trade concessions from another country,” Mucheleka explained.