In depth

African Union Trade Ministers adopt EPA declaration to emend GATT

Silvia Gaiani

22/05/2009 10:18 am

African Trade Union ministers called on the African Group in the World Trade Organization (WTO), in collaboration with other members, to intensify efforts towards appropriately amending Article XXIV of GATT 1994. The intent is to allow necessary Special and Differential Treatment provisions, as well as the less than full reciprocity principle, and explicit flexibilities that are consistent with the asymmetry required to make the Economic Partnership Agreements (EPAs) development oriented.

This would be in line with the EPA declaration, which was adopted at the African Trade Union meeting on 16-20 March 2009. The ministers also called on the European Commission to show greater flexibility in its position during the negotiations of full and comprehensive EPAs.

Ministers stressed that a well structured, balanced, and development-oriented EPA, which offers improved market access into the EU market, takes adequate account of the difference in the levels of development of the EU and African countries, provides the latter with necessary policy space, and which addresses the supply-side constraints of African economies can offer significant development dividends to Africa.

Ministers also welcomed the EU strategy on Aid for Trade and urged that the initiative be adequately funded, and effectively and expeditiously implemented to enable African countries and regions to fully benefit from the implementation of EPAs. Ministers further reiterated the need for the contentious issues in the EPAs to be adequately addressed in the context of the negotiations of full and comprehensive EPAs.

Ministers also considered an EPA Template as work in progress and called on the African Union Commission (AUC), United Nations Economic Commission for Africa (UNECA), and the regional economic communities (RECs) to continue to consult in order to further strengthen the document and ensure coherence. They encouraged African countries and regions to make use of the template where necessary. Of note was the need to keep trade open, to monitor the impact on competitiveness of African products that the stimulus and bailout packages in the west are having, and the need to develop intra-African trade.

WTO Director General Pascal Lamy said the lack of liquidity for trade financing and the higher risk premium is noticeably impacting the demand for commodities. This is outside the jurisdiction of the WTO, but international financial institutions and commercial banks are being mobilised to address the problem. Protectionist measures are taking the form of non-tariff barriers and import licensing, as well as tariff and subsidy rises and bailout packages.