COMMENT - Vital Moreira is one arrogant a-hole. Right on for minister Sichinga for standing up for the Zambian economy within the framework of EPAs and 'free trade'.
EPAs should foster regional integration, says Sichinga
By Kabanda Chulu
Tue 27 Mar. 2012, 12:58 CAT
ZAMBIA will not sign a full Economic Partnership Agreement (EPA) with the EU if various contentious issues are not addressed, says commerce minister Robert Sichinga. The 77-African, Caribbean and Pacific (ACP) member countries, including Zambia, have been negotiating the EPAs with the EU from 2002 that will enhance trade, provision of full market access and free trade market reciprocity arrangement.
But conclusion of the matter has remained elusive due to various misunderstandings such as EPAs being based on a
flawed neo-liberal macroeconomic theory which
does not take into account unequal power relations between rich and poor countries.
There are also fears that EPAs would only result in disintegration and not regional integration looking at the fragmentation that has resulted in some member states negotiating bilateral trade agreements with the EU for fear of losing market access.
During a meeting with the a delegation from the European Union (EU) parliament in Lusaka, Sichinga, who is also chairperson of the Eastern and Southern Africa (ESA) configuration that is negotiating economic free trade and reciprocal agreements with Europe said Zambia and several other countries would not sign EPA that would be based on 'a horse and a rider' relationship.
"The EU is an important trading partner and we remain committed to the EPA process since it is our belief that a development-friendly EPA can contribute to the sustainable development of our economies but the absence of binding commitment on development is keeping us apart. And we want EPAs to foster regional integration and not undermine it," Sichinga said.
"Also the insistence by the EU to limit our policy space to use export taxes for industrialisation is stalling the EPA negotiations because how do we finance our budgets without taxes and we cannot agree to being vetoed by EU on this issue and we are not going to sign anything that ties us down but we want flexibility in EPA."
And EU parliament international trade committee chairman Vital Moreira said Europe had shown much flexibility on the EPA.
"No partner could claim ownership of multilateral agreement and the design of the EPA is to encourage regional integration but five years has elapsed since agreement was to come into force and agreements are achieved within reasonable time limit, so it is either we have the EPA or not but least developed countries will still enjoy market access under the everything but arms agreement but I don't think there are countries that want to remain LDCs," he said.
Labels: EPAs, EU, NEOLIBERALISM, REGIONAL INTEGRATION, ROBERT SICHINGA
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SAPSAN urges rejection of EPAs’ imposition
By Chiwoyu Sinyangwe
Tue 24 Aug. 2010, 04:02 CAT
THE Southern African Development Community (SADC) Customs Union set for launch this year has been postponed and various models for a future union will be investigated over the next 14 months. And Southern African People’s Network (SAPSN) has called on regional governments to
reject the imposition of the Economic Partnership Agreements (EPAs).
The main challenge SADC was facing was whether the existing five-member Southern African Customs Union (SACU), which is 100 years old, should be enlarged or incorporated into the future SADC Customs Union.
According to the resolution of the just-ended SADC Heads of State summit in Windhoek, the Heads of State endorsed the decision of existing customs union task force to appoint a team of experts to map out various scenarios and models for the future Customs Union which is to accommodate all the community’s member states.
SADC executive secretary Tomaz Salomao told reporters that the matter was very complex. He said the report of the SADC task force and the experts was expected by December 2011.
“We might see a scenario where a SADC summit will have to be convened to deal with the matter when the customs union can be launched and to discuss the implications of the global economic meltdown on our southern African region,” said Salomao. “If we use the existing SACU as a starting point, we will start at zero or we check how other regional configurations like the East African Community (EAC) and Common Market for Eastern and Southern Africa (COMESA) are doing it and reach an agreement on a customs union.”
Meanwhile, key SADC civil society organisations have resolved that regional governments should reject the EPAs.
The more than 350 representatives drawn from grassroots movements, community and faith-based organisations, women’s associations, labour, student, youth, economic justice and human rights networks and other social movements, also urged the regional governments to ratify regional declarations, treaties and protocols on economic and social rights.
“At this point, the most pressing common concerns to all our countries, and the demands of our peoples arising out of the powerful presentations, first-hand testimonies and the key demands expressed throughout this summit,” reads part of the communiqué issued at the end of the meeting held amid pomp and fanfare presented in the form of music and dance.
The representatives of the groups demanded the ratification and rapid implementation of SADC Declaration and Treaty and all SADC Protocols on social and economic rights, particularly the original protocol on the free movement of all SADC citizens within their region, including the right of assembly and freedom of expression.
The issues of human rights violations across the region also came up for discussion, with participants expressing deep concerns at the continuing cases in Zimbabwe and Swaziland.
“Furthermore, the groups called for the rejection of all free trade agreements and especially the EU-imposed Economic Partnership Agreements which are dividing and threatening the very survival and future development of SACU and SADC,” the communiqué further. “The full institutionalisation of all democratic processes and bodies (including to ensure fully free and fair elections), the guarantee of all human and cultural rights and the protection of human rights defenders and political activists, with particular reference to Zimbabwe, Swaziland and Madagascar, and DRC which is still suffering the effects of war.”
The Namibia summit was the sixth such occasion of the gathering held under the theme “Reclaiming and reuniting SADC for People’s Political, Social and Economic Rights Declaration” organised by SAPSN and the local host organisation NANGOF Trust.
Several other issues such as the regional solidarity, development, global financial and economic, climate change and related crises facing Africa and the world were also discussed.
The discussions also witnessed testimonies from commissions speaking on the state of democracy and human rights in SADC countries, on the rights of workers and social and economic protections, on the scourge of unemployment especially amongst youth, and the necessity for affordable education for all, among other issues.
Labels: EPAs, SADC, SAPSAN
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EPAs to affect trade among ACP countries – Kamayoyo
By Fridah Zinyama
Thu 27 May 2010, 04:00 CAT
ECONOMIST Kelvin Kamayoyo has said trade amongst African, Caribbean and Pacific (ACP) Countries is likely to reduce due to trade diversion if the Economic Partnership Agreements are signed. Ideally, EPAs are expected to promote regional integration due to expanded market coverage for either party.
Zambia is currently negotiating EPAs under the Eastern and Southern Africa (EAS) countries and among all six negotiating groups, by 2008 only the Caribbean Forum had concluded a full or comprehensive EPA covering trade in goods and services and a host of other trade-related areas such as competition policy and intellectual property.
Kamayoyo who gave his personal views on EPAs said the ability of the manufacturing industry to grow shall also be threatened.
He said EPAs were no longer a free trade arrangement because individual countries were forging ahead to sign the EPAs contrary to their regional visions of customs union agenda and by so doing the agreement would not breed a free trade but a bilateral trade agreement in nature based on single state and not territorial customs union.
“ACP countries and in particular African countries must hasten regional integration processes to build and consolidate supply side capabilities before opening up to the EU,” he said.
Kamayoyo said if the EPAs were to be supportive of development and regional integration in Africa, this would require extensive technical and financial support from the EU and other co-operating partners.
“As for the EU, they have to ensure that both EDF and EPAs development envelopes are timely disbursed and properly utilised,” he said. “Therefore some transitional protection (safeguards) for local producers should be negotiated, for longer transitional periods (30 years) beyond current proposals,” he said.
Kamayoyo said the EU should face the reality and appreciate the fact that the EPAs were not going to create a fair and enabling environment capable of buttress flying regional integration for most ACPs regional economic communities for as long as they continue to offer subsidies to their industries.
Labels: EPAs, KELVIN KAMAYOYO
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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.
Labels: CSPR, EPAs, NEOCOLONIALISM, PATRICK MUCHELEKA, POVERTY
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Mutati to base EPA talks on development
By Kabanda Chulu
Wed 04 Nov. 2009, 04:01 CAT
ESA Grouping chairperson and Zambian commerce minister Felix Mutati has said the development dimension and not market access must be the basis of the ongoing negotiations under the Economic Partnership Agreements (EPA) to be signed soon with the European Union.
And Mutati has expressed optimism that Malawi will sign interim EPAs despite President Bingu wa Mutharika’s comments that his country will not be part of the EPAs in their current format since the intention of Europe was to divide Africa.
Despite Europe’s insistence that EPAs would foster regional integration and allow free trade market reciprocal arrangements, the opposite seems to be happening as could be seen by recent development.
Last month in Mauritius, four out of the 11 Eastern and Southern African (ESA) countries signed interim EPAs hence indicating that the grouping was on the verge of disintegration instead of enhancing integration and unity.
However, Mutati said following the Mauritius meeting, there have been attempts to narrow differences and challenges among those countries that did not sign.
“As chair, Zambia is supposed to coordinate and we shall base our negotiation on development as first priority and market access will be second because we have things to consider such as infrastructure development and addressing challenges of competitiveness and supply side constraints,” said Mutati.
When asked that countries that did not sign in Mauritius committed to sign by October 31, 2009, Mutati responded that the ESA region was not using time factor as a pressure point to attract member countries to sign interim EPAs.
“Time is running out as per our commitment in Mauritius but there are still differences in perspectives hence the need for patience and if we rush to sign, we may not get the outcome we want and we don’t want to use time as pressure point especially when dealing with sovereign states because countries are also consulting their citizens and these processes takes time,” Mutati said. “And this is why we want to engage Malawi to find out what fears they have and what can be done to address the challenges. After engaging Malawi, hopefully by next week that is when we shall meet the EU and set a timeframe to sign interim EPA.”
Despite the optimism from Mutati, it is clear that EPAs would not bring development especially that the EPA are based on a flawed neo-liberal macro economic theory which does not take into account unequal power relations between rich and poor countries.
Initially the ESA region was designed to involve Eastern and Southern African countries, but some countries broke away to start negotiating EPAs under East African Community (EAC), SADC and ESA. With these differences, EPAs would only result in disintegration and not regional integration.
Labels: EPAs, FELIX MUTATI
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Comesa advisor calls for unity over EPAs
Written by Kabanda Chulu
Wednesday, August 26, 2009 5:05:52 PM
COMESA chief technical advisor Dr Moses Tekere has said the decision
by some countries not to sign interim EPAs with the European Union will undermine regional integration and cohesiveness in the Eastern and Southern Africa (ESA) region.
Announcing the decision of six countries out of the 16-member ESA configuration that would sign interim Economic Partnership Agreement (EPAs) with the EU in Mauritius this Saturday, Dr Tekere said Europe was a major trading partner for the region and accounts for 40 per cent of total trade.
“But we cannot have trade without a proper regime to guide us and also we want to move away from dependency to partnership so that we can be able to negotiate on our terms and with what we have,” Dr Tekere said.
“But the biggest challenge is that some countries are not signing and this undermines regional integration and cohesiveness because it shows that we are not united as a group but those countries not signing have given reasons of various strategic national interests.”
He said the interim EPAs would allow 100 per cent market access for all goods from the ESA region but with temporary exceptions for rice and sugar, adding that the EU would provide about two billion euros for costs of adjustment and development assistance.
“We need about 30 billion euros for development assistance and to meet costs of adjustments but we have not secured these funds, anyway we should not put our lives in the hands of Europe but we should decide our own destiny hence the need to look for alternative resources within the region,” Dr Tekere said.
Despite the proposed signing of the Interim EPAs with the EU this Saturday, a lot of contentious issues still remain unresolved.
For instance, the EU has not agreed with ESA on many issues such as export taxes to protect infant industries whereby taxes can be imposed on raw materials to encourage value addition. The EU also has insisted on inserting into the EPAs a standstill clause that would lock the ESA region not to negotiate any other agreement with other concerned parties and the most favoured nation clause (MFN) which would entail the ESA countries extending to the EU whatever trade agreement they might enter into with any other countries or regions.
But Dr Tekere said the list of issues not agreed upon had now been reduced.
“We have agreed to modify tariffs and we shall not open up sensitive industries which we think are critical to our economies and on the MFN clause we shall only open up to 80 per cent market access,” said Dr Tekere.
Labels: COMESA, EPAs, MOSES TEKERE, REGIONAL INTEGRATION
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4 SADC members sign interim deal for EPAs
Written by Kabanda Chulu
Thursday, June 11, 2009 12:22:41 PM
FOUR countries in the Southern African Development Community (SADC) have signed an interim deal for the Economic Partnership Agreements (EPAs) with the European Union in order to secure market access to Europe.
Currently, there are seven countries negotiating EPAs under SADC but only Botswana, Lesotho and Swaziland signed an interim EPA and Mozambique just signaled its intention to sign the agreement in the near future, though its trade minister was unable to be in Belgium at the signing ceremony. Three other countries in the region, South Africa, Namibia and Angola, opted not to sign at this moment.
During the signing ceremony in Brussels, Belgium, EU trade commissioner Catherine Ashton said the signature of the agreement was an important step.
ìIt first of all guarantees market access to the European market for those countries that have signed today. More importantly, it is a vote of confidence in the process that we have put in motion to build a strong and lasting economic and trade relationship,” stated Commissioner Ashton.
And SADC EPA group chairperson and Botswana trade and industry minister Neo Moroka said the signing of the interim EPA marked a significant milestone in the trade negotiations.
“It ensures uninterrupted flow of SADC EPA goods into the EU market. There are still some outstanding issues to be resolved and these will be negotiated in parallel with negotiations towards a full EPA, covering services and investment,” stated Moroka.
The agreement would now have to be notified to the World Trade Organisation (WTO). Angola as a Least Developed Country (LDC) maintains its duty-free quota-free access to the EU market under the 'Everything but Arms' (EBA) initiative while the South Africa-EU trade is governed by the Trade, Development and Cooperation Agreement (TDCA) signed in 1999 which allows preferential tariff rates for more than 90 per cent of South Africa's exports to the EU.
Estimates show that the EU represents SADC group's largest trading partner, and in 2008, total trade flows with the EU for the four countries which have now signed interim EPAs were almost 2.1 billion euros.
And the main exports to the EU for the four countries were aluminium, diamonds, sugar, beef and fish. Their main imports from the EU were mechanical and electrical machinery, fertilisers and vehicles.
Labels: EPAs, SADC
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EPAs take a political dimension
Written by Kabanda Chulu
Wednesday, May 27, 2009 1:53:20
ESA countries negotiating
Economic Partnership Agreements (EPAs) with the European Union have removed technocrats from the negotiations, claiming the urgent need to add a political dimension to the negotiations.
This development clearly indicates that the Eastern and Southern African (ESA) configuration would soon sign full and comprehensive EPAs that would result in free trade arrangements whereby EU goods and services would flood the markets of ESA countries and thereby affect local industries that could not compete effectively with EU companies since they were highly subsidized.
Also there have been concerns that it was not possible to establish a reciprocal market regime between the weak (ESA) and the strong (EU) because the arrangement would have negative implications on government revenue collections since EU goods would come in without paying duties and taxes.
But ESA grouping chairperson and Zambia's minister of trade and commerce Felix Mutati said EPA negotiations have been taken at a political level since time was not on 'our' side.
"We cannot negotiate in perpetuity but we have to end somewhere and politicians have a sense of urgency to conclude and produce results especially that technical people (technocrats) usually ends negotiations in deadlock so we have taken it up at political level and we shall sign provided contentious issues are addressed," Mutati said.
"Trust us we will deliver and we shall continue engaging the EU to sign EPAs soon because if we do not do it, we shall remain since trade and investment is critical to poverty reduction."
He said the EPA negotiations would now focus on minimizing disagreements.
"There is no need to stop the EPA negotiations and the new EU trade commissioner Catherine Ashton is a person we can engage with fully since she is flexible and calm and she has said something about making changes on outstanding issues but we do understand that in negotiations you never have a perfect agreement because you give and take," said Mutati.
"So let us move away from this syndrome of lacking substance and details, for instance, some people say don’t sign without understanding the substance and issues within EPAs and as Zambians, as ESA we should not be pedestrians but we should be ready to respond effectively to trade and investment matters."
Labels: EPAs, ESA
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EU can’t force EPAs on ACP countries – Ashton
Written by Chibaula Silwamba
Wednesday, April 22, 2009 6:09:40 PM
THE European Union (EU) cannot force Zambia and other ACP countries to sign full Economic Partnership Agreements (EPAs), trade commissioner Catherine Ashton has said.
And Ashton said the European Commission plans to enhance Zambia's productive capacity in agriculture and livestock, where large export potential exists, with future programmes amounting to €32 million (about K238 billion).
The European Union is currently negotiating the EPAS with 76 former colonies in Africa, the Caribbean and Pacific (ACP) countries.
So far, over 35 countries have signed the interim EPAs covering trade in goods, but others like Senegal and South Africa have refused to sign. Zambia is one of those countries that have signed the interim EPAs, which are likely to lead to full signing sometime this month if the EU and ACP countries manage to solve the contentious issues contained in these trade agreements.
Civil society organisations across Africa, and some from the EU, have raised concerns regarding the EPAs. They argue that the impact in ACP countries, once the EPAs are implemented, would be job losses, government revenue losses and cuts in public services as developing countries would be forced to open up their markets to the EU before they are ready. The civil society organisations, in their arguments, further indicate that rather than helping 76 poor countries trade out of poverty, EPAs threaten to cause more poverty and hunger.
But Ashton said African, Caribbean and Pacific (ACP) countries can tremendously benefit from the EPAs, although the EU could not force them into signing interim or full trade agreement currently under negotiation between the two parties.
“We have continued to work closely with all countries as we seek to sign the interim EPA and move forward with negotiations for a full, comprehensive EPA,” said Ashton in an interview in Lusaka. “I have been extremely impressed by the engagement of countries throughout the ACP, and by the good work done by regional coordinating bodies, especially in Eastern and Southern Africa. [Commerce, trade and industry] minister [Felix] Mutati of Zambia has been very dynamic in driving the process forward and making sure that the concerns of the region are heard.”
Ashton said the EU and ACP countries were having an open and constructive dialogue on key concerns in the ACP.
“I am committed to building confidence in agreements that, if done properly, should serve us well for decades to come. During this visit to Lusaka I had a fruitful discussion with some of the ministers from the [Eastern and Southern African] ESA grouping as well as the Secretary General of COMESA [Common Market for Eastern and Southern Africa], and we reached an understanding that our senior officials would meet in the near future in Brussels in order to look in detail at how to move forward,” she explained.
Asked about the wide opposition to the EPAs by civil society organizations in Africa and some from the European countries, Ashton said the EU was committed to an open and frank debate on EPAs with those opposed to the agreements.
“What I have continued to stress is that I have no interest in agreements that make any country worse off, and the EU will show flexibility in the framework of EPA negotiations. Indeed, EPAs are designed to ensure that ACP countries can continue on the path they have taken towards economic development and regional integration,” she said.
She said the EU and ACPs must find agreements that guaranteed the preferential access to the European market.
“That is so important for ACP countries, especially non-LDCs, and these agreements must hold up to scrutiny by other members of the World Trade Organisation,” Ashton said. “Failure to achieve this would leave us open to a legal challenge by a third country, with all the negative consequences for both sides such a challenge would bring. Signature of interim EPAs will give us the legal certainty that our economic operators need.”
On the concerns that the EPAs will benefit the EU nations more than ACP countries, Ashton said ACPs could also tremendously benefit from the EPAs.
“Firstly, they ensure legally binding duty-free, quota-free access for LDCs and non-LDCs alike to the EU market. This alone is potentially quite important for a country like Zambia, whose medium-term growth prospects mean it may no longer be an LDC within the next decade,” she said.
Ashton further said the EPAs contained ample provision for ACP countries to protect sensitive sectors.
“ACP countries have seen their market share in the EU decline under the existing system of preferences. EPAs are geared to change that, and this is where their real impact is to be found. Full EPAs will equip ACP countries to further integrate into the global economy, make their industries more competitive and allow their products and services to fulfil the quality and safety standards that are necessary to compete on international markets,” Ashton said.
She said each country had the primary responsibility for its own development and expected countries like Zambia to take up that challenge.
“However, we understand only too well that assistance both with funding and know-how is needed in order for many ACP countries to increase their presence on world markets, and the EU is committed to that,” she said. “We are and will continue to be the largest contributor to Aid for Trade worldwide, with a total of over € 7 billion (about K52 trillion) every year worldwide going into areas as diverse as infrastructure, building productive capacity and providing support for trade and investment promotion.”
Ashton said a good example of that commitment was the €115 million (about K 856.7 billion) the European Commission pledged for the North-South corridor project.
“This regional initiative will help those companies who can be competitive to eliminate trade obstacles and get their products to regional and international markets more efficiently. Of course we also need to give those who are not yet in a position to compete the right tools to do so,” Ashton said. “In regional terms, Zambia is in a very favourable position, being at the core of the North South Corridor. This means it will benefit from a substantial amount of that European Commission pledge, going towards rehabilitation works for the Zimba-Livingstone road, for the Great East Road, and for the Lusaka-Malawi border. The European Commission plans to enhance Zambia's productive capacity in agriculture and livestock, where large export potential exists, with future programmes amounting to €32 million (about K238 billion).”
She said the provisions on rules of origin that had been agreed upon in the interim EPAs were more favourable than those currently in place for LDCs under the ‘Everything but Arms agreement’.
“So Rules of Origin should encourage, not discourage signature of the EPA. I understand that ACP countries would like to achieve the best possible situation on rules of origin, both in light of the benefits this can bring both for economic development and regional integration. I share the belief that we should continue to work on this area in the framework of negotiations for the full EPA,” said Ashton.
Labels: CATHERINE ASHTON, EPAs, EU
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DPI advises on EPAs
Written by Nchima Nchito Jr
RURAL development dialogue must be done before signing Economic Partnership Agreements (EPAs), Development Partnership International (DPI) has stated.
In a statement, DPI supported commerce minister Felix Mutati’s decision to dismiss the April, 2009 deadline for signing full EPAs.
“Increased budgetary allocation to rural development can help African, Caribbean and Pacific (ACP) countries to be in a better position to sign and implement EPAs,” stated Richard Musauka, DPI’s media and strategy coordinator.
Musauka stated that DPI noted the need to develop and improve infrastructure through increased funding. He further stated that the private and public sector needed to partner for ACPs to be ready for EPAs and to make implementation successful.
“Governments in ACP countries should use the macroeconomic environment to build infrastructure and capacity to set the basis for balance and sustainable growth. National budget allocations should improve and continue to put emphasis on the social sector.
More attention is needed to creating value addition to raw materials and direct more attention to domestic private sector investment as a counterpart to foreign direct investment,” Musauka stated.
He also stated that while DPI acknowledged that donor support for African development had been around for a long time, ACP governments needed to work hard to bring development in their countries.
“It must also further be noted that governments and donors come and go and they change their ways and goals quite often. They are a bit unsteady sometimes and this raises a critical need for the people in ACP regions to work hard,” stated Musauka.
Labels: DPI, EPAs
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Tread carefully on EPAs - AU
BY NANCY MWAPE
THE African Union says Economic Partnership Agreements with the European Union (EU) should not comprise Africa’s efforts to integrate.
AU Deputy Chairperson, Erastus Mwencha said in an interview in Lusaka that integration was important for African countries to create a bigger market.
“Zambia has a population of about 10 million and this is not enough to use as a basis to compete globally. Integration is extremely important for our continent.
It’s a lif line and not a luxury. We need to work together and be part of the global economy,” he said.
Mr Mwencha said if EPAs would make it difficult for African countries to integrate, it was important to think twice on the agreement.
EPAs are a new development cooperation agreement involving the EU and Africa Caribbean Pacific countries.
It is meant to replace the Cotonou agreements to harmonise them with the World Trade Organisation (WTO).
“Whatever we do, be it under WTO or EPAs, it should not comprise our own integration. This is one worry we have with the EPAs. If it will make it difficult for Africa to integrate, we must think twice,” he said.
Mr Mwencha questioned the purpose of being linked to the global economy, if EPAs were making integration of African countries difficult.
He said Africa was already linked to the global market and was not benefiting from that linkage.
“What is important for Africa is to integrate, and this is something we must guard jealously,” he said.
He said there was need to make trading corridors efficient to facilitate exports and imports of goods at competitive prices.
Effective corridors would lead to successfully integrating the continent into the global economy.
He said transportation costs were a major hindrance to most African states, especially landlocked countries such as Zambia.
Mr Mwencha said Africa was uncompetitive because of high transport costs, inefficiencies in energy and high capital costs.
He said for Africa to be competitive globally, it must develop infrastructure and address concerns on peace and stability.
He said there was need to also develop efficient human resource and technology to make the continent competitive.
He said to facilitate implementation of identified infrastructure works, the region needed one master plan to be executed by regional economic communities.
He commended the Zambian government for implementing the Chirundu one-stop border post to improve trade in Southern Africa and hoped the Beit Bridge border post could take similar steps so that landlocked countries like Zambia were competitive.
Mr Mwencha also commended the Common Market for Eastern and Southern Africa for establishing a fund to implement infrastructure development.
He said Southern Africa Development Community and East African Community were also working on developing a similar fund to develop infrastructure.
Labels: AU, EPAs, ERASTUS MWENCHA
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Zambia questions WTO’s role in promoting fair global trade
Written by Chiwoyu Sinyangwe
Tuesday, February 24, 2009 8:41:31 AM
ZAMBIA has questioned the relevance of the World Trade Organisation (WTO) in helping to promote fair global trade, accusing the trade body of spearheading modern day slavery by promoting Western favoured trade mechanisms.
Commerce minister Felix Mutati also said the current Economic Partnerships Agreements (EPAs) negotiations would remain an illusion for as long as the Doha Round remained unresolved.
Mutati told about 20 economic and financial editors from Commonwealth African countries attending a seminar on reporting globalisation at Protea Hotel last Sunday that Africans would survive the current global economic crisis as they were a strong people who even endured slave trade.
“Africans are strong. They survived slave trade, they will be able to survive. They are tough,” Mutati said. “Part of the solution to the current economic problems is for us to conclude our discussions on the Doha agenda. We must have some urgency in concluding the negotiations, then we can restore the lost trade globally which is estimated at US $2 trillion… at the moment, the relevance of the WTO is under serious question. Why have an institution that is not going to deliver?”
Mutati also said the success of the EPAs was dependent on the progress of the Doha Round of talks.
“Now the cousin of the Doha is called the EPA which is a subset of this Doha thing. We are saying that as we continue to have difficulties in Doha, let us conclude the EPAs but we are saying if the umbrella is defective, how do you conclude the EPAs when you can’t conclude the rule-based multilateral system?” he wondered.
Mutati also said the current global economic crisis had exacerbated the chances of Least Development Countries (LDCs) getting fair treatment from the Doha round talks.
Mutati also condemned Western countries for insisting on giving LDCs development aid and not opening up trade opportunities for them.
“…it’s a part of life you want to give us the hitherto of slave trade to block us from accessing the markets and creating deeper dependence on yourselves. That is what is called flamboyant slave trade. They hit you harder than the physical movement of people,” said Mutati. “We see ourselves in EPAs again facing the same issues that we thought would not be available in Doha. It is just the language that has changed a bit, but the substance has remained the same.”
Labels: DOHA, EPAs, FELIX MUTATI, WTO
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COMMENT - What a dumb (fill in the blank). Zambia has everything it needs to develop itself. People, land, minerals - it doesn't need anyone from abroad to develop it for the people of Zambia. What an incredible opportunity cost, that comes with the mentality of neoliberalism and reliance on foreign investment.
Mutati warns of declining foreign investment
Written by Nchima Nchito
Tuesday, December 16, 2008 8:27:44 PM
COMMERCE minister Felix Mutati has said Zambia will face a bigger
challenge attracting foreign investment next year than it did in the past year.
In an interview, Mutati said the expected decline in foreign direct investments (FDIs) sometime next year would pose a challenge to the government’s efforts in stimulating economic growth.
“These are the challenges we will be facing, we have to go out there and compete with other developing countries for foreign direct investments ,” he said.
Mutati attributed the situation to the current global economic crisis being experienced, with economies of developing countries also being affected.
“Many investors have had their fingers burnt in this crisis hence in the coming year, they will be very cautious about what investments they make,” he said. “This means it will be very competitive to win these investors to bring their money into Zambia”
Asked on what the government was doing considering that the effects of the economic meltdown were being felt in the country through the decline in copper prices leading to job losses in the mines and the devaluation of the kwacha against the dollar, Mutati said the government would engage in infrastructure upgrading to encourage investments.
“You have to understand that this is a global crisis and there is very little we can do for example to influence the copper prices. But also that this crisis has two sides to it,” he said.
Mutati said emerging markets were becoming the ideal risk spreading vehicles for investors.
“As developing markets, we are still providing reasonable returns on investments because we are not as hard hit as the developed countries by the meltdown,” he said. “For the first time, even countries like Korea have visited Zambia as potential investors.”
Meanwhile, Mutati has called for a favourable conclusion in the Economic Partnership Agreement (EPA) negotiations.
During a meeting organised by the Ministry of Commerce and attended by the donor community, Mutati said all differences hindering the progress of the agreement should be dealt with.
“Through your support as the donor community, an agreement could be reached. As of now, we operating with interim agreements so as not to disrupt trade,” Mutati said.
Mutati also called for further funding under the Aid for Trade programme.
“We see this Aid for Trade programme as a key development instrument promoting regional integration and a competitive environment,” he said.
Mutati cited the North to South corridor, which is a road originating from Tanzania through Zambia, as an example of the benefits of Aid for Trade.
Labels: EPAs, FDI, FELIX MUTATI
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Develop full document on EPAs, Cuts-Arc urges ESA
Written by Chiwoyu Sinyangwe
Friday, December 05, 2008 11:47:31 PM
EASTERN and Southern African (ESA) countries have been urged to critically come up with a comprehensive document on EPAs to foster development for both the European Community Bloc and ESA countries.
Commenting on today’s meeting by ESA officials and ministers to discuss the economic partnership agreements (EPAs) in Lusaka, Consumer Unity and Trust Society Africa Resource Center (Cuts-Arc) stated that there was need for a comprehensive document before concluding the full EPAs by the end of this month.
“In finalising the contentious issues identified at technical level negotiations, the state of play and the outstanding issues among other things; rules of origin, Export Taxes, Quantitative Restriction, standstill Clause and Bilateral safeguards should be looked at critically and addressed,” stated Cuts-Arc in a press release yesterday.
Cuts-Arc noted that the final text should ensure that the proposed or remaining restricted tariffs would be absolutely beneficial to the ESA countries and that the then opened percentage would not kill the already existing industries, especially the newly-established.
“If this is done, it will certainly help promote development, improve the competitiveness of enterprises and enlarge shares in the European market,” stated Cuts-Arc. “We suggest that by the time of signing the full agreement, all the concerns raised by ESA countries should be addressed so that EPAs are concluded on a win-to-win situation and not leave any country worse than they are presently.”
Labels: CUTS-ARC, EPAs, ESA
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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
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EU increases Zambia’s sugar quota allocation
Written by Kabanda Chulu
Wednesday, October 29, 2008 3:42:47 PM
THE European Union (EU) has increased the sugar quota allocated to Zambia following the government’s decision to sign the market access offer under the interim Economic Partnerships Agreement (EPAs).
The coming of the EPAs would result in the scrapping of the Everything But Arms (EBA) treaty that allowed least developing countries such as Zambia to be exporting goods to the EU under duty free and quota-free basis.
Announcing the development, Ministry of Commerce and Trade permanent secretary Davidson Chilipamushi said the EU had allocated a quota of 75,000 metric tonnes of sugar to three countries with Zambia getting an allocation of 32,500 metric tonnes.
Currently, under the EBA, Zambia Sugar Plc exports over 25,000 metric tonnes per annum into the EU.
“Since the EBA will be scrapped, all countries including LDCs will be trading at uniform level and some of our exporters will have faced difficulties in finding market for their products,” Chilipamushi said.
“Hence, under the market access offer which government initialled,there are benefits of increased quota allocated to Zambia for sugar amounting to 32.500 metric tonnes and this will also benefit small-scale farmers taking part in the out grower schemes.”
The rest of the countries that would share the 75,000 metric tonnes of sugar quota are Malawi and Zimbabwe.
And the second and final phase of the Zambia Sugar Plc expansion project would be completed for the 2009/10 and would see a major step change in cane and sugar production.
The expanded factory is expected to increase sugar production to around 450,000 metric tonnes by 2009.
Labels: AGRICULTURAL QUOTAS, EPAs, EU, SUGAR
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UNECA calls for consolidation of common African market creation
By Joan Chirwa
Tuesday October 07, 2008 [04:00]
UNITED Nations Economic Commission for Africa (UNECA) has observed that EPA negotiations have remained with a key challenge of how moves towards the creation of a common African market could be consolidated.
In a statement ahead of tomorrow’s continental workshop on the Economic Partnership Agreements (EPAs) between European and African countries in Addis Ababa, UNECA stated that the EPA should consolidate instead of complicating plans to come up with a common African market.
Tomorrow’s gathering is a follow-up to the previous continental meetings on the EPAs held in Mombassa in 2005, Cairo in 2006, and Nairobi in 2007.
“African countries have for the last six years been engaged in two important tracks of trade negotiations. These are the Doha Round at the World Trade Organisation and the Economic Partnership Agreements negotiations with the European Union,” UNECA stated.
The Zambian government has already made its position known over the EPAs, saying it will not be pushed into signing the trade agreement as it was conscious that some previous commitments by the EU had not been fulfilled.
And civil society organisations in Zambia also urged the government not to sign a full EPA with the European Union if it will not have a development dimension.
Labels: EPAs, UNECA
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Arsova urges LDCs not to sign EPAs
By Kabanda Chulu in Accra, Ghana
Wednesday August 27, 2008 [04:00]
UK-based Christian Aid policy officer for Africa Tzvetelina Arsova has urged Zambia not to sign Economic Partnership Agreements (EPAs) because the country can still access European markets under the Everything But Arms treaty.
And Resistance and Alternatives of Mauritius representative Roody Muneean said there is need to analyse the entire concept of liberalisation because it will result in another scramble for Africa.
In an interview at the ongoing 11th Africa Trade Network review meeting on Monday, Arsova said least developed countries (LDCs) including Zambia enjoy special differential treatment that allows them to raise tariffs to unlimited levels.
She said it was puzzling to see Zambia showing indications of signing interim EPAs.
"LDCs have a special status and most of the decisions are not binding to them but if they sign EPAs, then things will change, if anything Zambia should not sign because she is an LDC, which can rely on the Everything But Arms system," Arsova said. "But of course, Zambia will be obliged to sign since it belongs to a grouping with members having various interests to follow, but also there need to have a strong regional resistance to EPAs."
Under the Everything But Arms system, LDCs were allowed quota free and to an extent duty free access to the European markets, but under EPAs the arrangement is different since the EU would want reciprocity arrangements to enter the markets of LDCs without paying duty and other taxes.
Arsova said remaining with the Everything But Arms system would allow Zambia to have a wider policy space to decide what to do with other trade agreements.
"But under EPAs, LDCs will be trapped and locked with the EU as the only trading partner," she said.
Arsova is based in the United Kingdom but has been supervising various Christian Aid programmes in Zambia for the past five years.
And Muneean said there was need to embark on stop EPA campaigns that should anchor on tangibles in order for people to embrace the messages.
"Liberalisation in its entirety must be questioned before Africa is divided into parts for exploitation of resources," said Muneean.
Labels: EPAs
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EPAs worry small-scale farmers
By Joan Chirwa
Tuesday June 10, 2008 [04:00]
SMALL scale farmers will completely lose out on markets once governments in the region decide to hurriedly sign Economic Partnership Agreements (EPAs) this December, East and Southern Africa Small Scale Farmers Forum (ESAFF) has observed. And Consumer Unity and Trust Society (CUTS) Zambia coordinator Angela Mulenga has called for the discontinuation of EPA negotiations to safeguard interests of small scale farmers in Eastern and Southern (ESA) region.
ESA and the African, Caribbean, Pacific (ACP) countries have between now and December this year to concretise discussions with the European Union (EU) as they move towards the full implementation of the EPAs.
Several countries have signed interim EPAs, but stakeholders have questioned the idea behind the move since ESA and ACP still have a lot of issues to iron out before the trade arrangement takes effect.
“Farmers in the region look at the EPAs like a relationship between two unequal partners. The EU is hurrying us to sign the EPAs by December this year but when we look at advantages European farmers, it will be difficult for us to compete because our colleagues are heavily subsidised,” said Mubanga Kasakula, ESAFF’s regional vice-chairperson. “Small scale farmers in the region will lose even the little market that exists if we allow the EPAs to be signed.
For example, here in Zambia, we are already complaining about the number of goods flooding our markets from within the region. So if we fail to trade within the region, how possible will it be for us to compete at international markets such as those in the EU?”
In September 2002, the European Union and the ACP countries officially opened negotiations on EPAs in Brussels, which would have taken place over a five year period, were aimed at redefining the trade regime between the two groups of countries. Some considered that EPAs have the potential to offer the ACP countries good opportunities while others foresaw much soul-searching when it came to ensuring an improvement over the former system in terms of development prospects for the ACP countries.
From January 1, 2008, the waiver obtained from the WTO at the Doha ministerial conference would have come to an end to be replaced by a new framework that must be compatible with World Trade Organisation (WTO) rules, but this target was missed owing to unresolved differences in the trade negotiations between the EU and ACP countries.
The European Commission (EC) market access offered to the ACP countries under EPAs consists of duty-free, quota-free treatment for all imports. This treatment would apply from entry into force of the agreements for all products except for sugar and rice, whose duty-free, quota-free treatment would be phased over a transition period.
ACP countries have insisted that the EU should build capacity of African countries before the EPAs are concluded to ensure fair reciprocity in trade. In practical terms, ACP countries cannot adequately compete with the EU in trade due to the formers’ poor infrastructure and diverse socio-economic problems being faced by several countries.
In terms of trade in agriculture, there is a very big production gap between EU and ACP countries as the former heavily subsidises its farmers while the scenario is totally different for the latter. Agriculture, predominantly composed of small-scale farmers in most ACP countries, has not yet reached its peak and developing nations say allowing competition with already developed industries would hurt the local producers.
During negotiations, the ACP countries have raised concerns regarding the impact and benefits of small-scale farmers from the proposed EPAs and regional trade arrangements. Activists for pro-poor trade arrangements argue that the market liberalization of agricultural trade and the speedy process of regional integration under EPAs would worsen poverty levels in rural areas where most of the people depend on agriculture for their livelihood, as is the case in Zambia.
In Zambia, the small-scale farmers continue to account for the largest amount of total maize production of around 1.2 million metric tones, with 82 per cent while the remaining portion is produced by commercial farmers. This means small-scale farmers also need to be at the centre of trade negotiations on agriculture under EPAs.
It is also argued that the EU is pushing for an agreement on agricultural issues that have not been resolved in the Doha Round of trade negotiations being spearheaded by the WTO, and ACP countries are opposing this.
“Governments in the region should re-plan and reconsider the decision they are about to take in terms of signing the full EPAs this December,” Kasakula said. “People involved in production at a small-scale level but these have not been consulted in any way.”
As a result of the foregoing, ESAFF organised a two-day regional workshop in Lusaka where Kenya, Zambia and Zimbabwe were represented. The meeting aimed at increasing awareness on EPAs and regional integration among small-scale farmers as well as provides a forum for farmers to raise and share concerns on constraints to regional and local market access and analyse implications of EPAs on small-scale producers.
Recent assessment indicate that Zambia is expected to lose US $15.8 million (approximately K62.4 billion) resulting from the elimination of tariffs through the EPAs.
Countries in ESA are set to lose US$ 212 million worth of trade with one another, while the EU would increase its exports to the region by US $1.1 billion as a result of the EPAs. With limited sources of domestic revenue and tax bases, tariffs are one key sources of revenue for African countries. According to the World Bank, tariff revenues in sub-Saharan Africa average 7-10 per cent of government revenue, thus relying on import taxes to contribute to revenue to finance public services.
And Mulenga said there is need to lobby for EPAs to be coherent with national poverty reduction strategies and national development plans.
“The Ministry of Finance becomes key at this stage,” Mulenga said. “There is need to stop EPAs before December 2008 to safeguard the interest of the small farmers and save livelihoods of small farmers in ESA region.”
Mulenga said development in EPAs could only be achieved if there is increased international financial and technical assistance to assist small farmers to improve production and enhance trade capacities.
“Therefore, the EU needs to live up to its commitment to provide additional funds and not to ask member states. It would be ideal for each member country to develop strategies of accessing the funds being proposed in the current negotiations. These then would feed into the regional resource mobilization strategy,” Mulenga said. “Small farmers are usually left out hence need to find space so that their concerns are included in the various Funds being proposed.”
ESA countries have been asked to establish an ESA fund through the COMESA fund, but Mulenga says mobilization of funds might be difficult as most member states have bilateral agreements with individual ESA countries.
As of April 2008, the EC proposed that additional funds be mobilisd from the member states, hence the need to finalise a detailed costed development matrix.
Labels: CUTS, EPAs, FARMERS
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SAFADA calls for strong support system in deals
By Joan Chirwa
Friday June 06, 2008 [04:00]
SMALL-scale farmers in Zambia need a concrete and strong support system for survival once the Economic Partnership Agreements (EPAs) come into effect, Small-Scale Farmers Development Agency (SAFADA) director Boyd Moobwe has said. And East and Southern Africa Small-Scale Farmers Forum (ESAFF) vice regional chairperson Mubanga Kasakula has said
small-scale farmers have been facing numerous difficulties in influencing policies designed for them due to inadequate information about trade arrangements like the EPAs.
During a three-day workshop on the EPAs and regional integration which ended in Lusaka yesterday, Moobwe said small-scale farmers in East and Southern Africa regions had been operating under stress, hence opening competition with the European Union (EU) would completely put them out of business.
“The vision of the EPA is a very big one and it needs a lot of time to discuss and come up with concrete resolutions before Eastern and Southern Africa (ESA) and the African, Caribbean and Pacific (ACP) countries sign the full EPA in December this year. We don’t need to rush into signing this agreement, we need to have case studies and see what repercussions the trade arrangement would have on small-scale farmers,” he said.
“Our experience nationally and regionally is that the capacity of farmers and the organisations that represent them has been weak,” Kasakula said.
Zambia and a few other countries in the region have signed an interim EPA, which would be replaced by the full EPA, expected to be signed this December.
The EU engineered EPAs will require countries to engage in reciprocal trade once implemented. However, most ESA and ACP countries do not have the capacity to compete on the EU markets as farmers in the EU are heavily subsidised.
Labels: EPAs, ESAFF, SAFADA
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