• Lome and Cotonou

Lome and Cotonou

Pointing to the likely devastating effects of the Economic Partnership Agreements (EPAs) proposed by the EU on African, Caribbean and Pacific (ACP) countries, this report argues that if the EPAs go ahead as planned jobs would be lost and livelihoods would be wrecked. It also argues that European corporations would be empowered while ACP governments impeded. For that reason, the report suggests that there are viable alternatives to free trade Economic Partnership Agreements.

If the future of trade agreements between the EU and ACP countries lies within the framework of the EPAs, the report suggest some radical changes. For example:

• a single ACP country-EU EPA could be introduced, which could solve some of the problems of regional integration and provide "national" protection for poor countries’ industries; this means, however, ACP countries would lose negotiating clout with the EU if they followed this route and the reciprocity problem would remain.
• a non-reciprocal EPA would allow ACP countries to continue to access the European market without any requirement to liberalise and ACP countries would also be free to decide to unilaterally cut tariffs in a strategic and targeted way if they considered it in their developmental interests to do so.; a non-reciprocal EPA would, however, require changes to the European Commission’s negotiating mandate and WTO rules on regional trade agreements.

Alternatives outside the EPA framework are also explored by the report. The report highlights that according to the Cotonou Partnership Agreement, the EU is legally required to let non-least developed ACP countries choose an alternative trade deal should they wish:

• one possible alternative is the EU’s Generalised System of Preferences which offers some advantages to ACP countries because it is a non-reciprocal trade scheme – making no requirements for the ACP to liberalise; however, it would increase duties on some ACP products, making it more difficult for them to access the European market
• a further option is the EU’s Everything But Arms scheme, but this would need to be extended to all low-income developing countries with similar development needs; its rules of origin requirements need to be improved and it needs to become a contractual rather than a unilateral preference scheme.

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