The European Union is set to water down its demands in free trade deals with its former colonies to try to head off a crisis in relations with Africa, according to The World Bank Press Review.
Development ministers meeting in Brussels are expected to back a plan by Peter Mandelson, the trade commissioner, to offer an agreement covering only goods initially, leaving more sensitive areas such as opening up service and government procurement markets until further talks after months of bruising discussions on the issue.
Under that deal, East African Community (EAC) partners will enjoy duty- and quota-free market access to the EU for all products except sugar and rice, which are to be liberalized gradually.
HØJERE AFGIFTER UDEN AFTALE
Europe has said that if deals are not reached by the end of the year, then it will have no legal choice but to significantly reduce existing trade benefits.
That would mean higher tariffs for African, Caribbean and Pacific (ACP) goods entering Europe from January 1st.
EU ambassador to Nigeria Robert Meulen expressed optimism that the mini package would be sufficient to meet the WTO requirement, while other aspects of the agreement were being negotiated.
Rwanda and Burundi, who joined the EAC bloc this year, will be excluded from the deal until December 2009 to allow them to finish implementing the EAC customs union.
In addition, the deal offered a 25-year transition period to prevent loss of revenues among the east African nations.
A coalition of grassroot civil society groups expressed anger, saying the EU ‘bullied’ its way into the interim deal that will undermine development in the five nations.
Kilde: www.worldbank.org
