Europe’s new trade agreements
Trade with the European Union (EU) could help lift millions of people out of poverty, but only if it’s governed by fair rules allowing the growth of farming and industry in poor countries.
But at the moment, the EU is pushing for deals that put their economic interests above those of some of the poorest people in Africa, the Caribbean and the Pacific.
How are they doing this?
Through so-called ‘Economic Partnership Agreements’.
What's the urgency?
Europe piled on the pressure to get these unfair trade deals concluded by the end of 2007, threatening to shut off access to its markets if deals weren’t done.
More than half of the 76 Africa, Caribbean and Pacific countries didn’t conclude anything and are holding out for a fair deal. In the face of massive pressure, the others concluded deals but many are so worried about the contents that they are calling for re-negotiation.
Europe is refusing to listen, insisting that all countries sign up by the end of 2008.
How will people in poor countries be affected?
If the new trade agreements are skewed in favour of Europe’s rich countries, they are more likely to deepen poverty than reduce it.
Why will the deals deepen poverty?
The EU is pushing for new rules that will open up African, Caribbean and Pacific (ACP) countries to competition from technologically advanced European industries, and heavily subsidised European farmers.
Industries in ACP countries will not be able to compete, and new industries will not be able to develop. This will put a strain on the economies of these poor countries and put the jobs and futures of millions of poor people at risk.
Is the EU playing fair?
No – as so often with trade rules, double standards are at work. Europe promised that sustainable development would be at the heart of any new trade deal. Instead, its proposals will deny ACP countries the right to protect their industries – a right that rich European countries have exercised over many years while they’ve built up their economies.
ACP countries want trade agreements to take into account their particular development needs, but Europe is still not listening to their concerns.
What now?
Oxfam has been successfully campaigning on trade issues for years, but with international negotiations currently stalled this could be our last chance to make trade deals that make a difference to the lives of poor people.
