PES Manifesto

Developing markets is not a treat for international companies

Published Thursday, December 20, 2007 at 11:30
by Editor (877 views and 0 comments)

‘EPAs’ – the expression itself sounds harmless, but these trade agreements with poor countries are really a hot topic for debate!

Right now the European Union is negotiating trade agreements with 77 African, Caribbean and Pacific countries. If the developing world and the EU have not reached an agreement before the end of the year the 77 countries risk being left with a much less advantageous deal. The deadline for the negotiations has just been extended - buying both the EU and the developing countries more precious time to think.

If you ask the poor countries signing the current offer from the EU is not exactly a dream come true either. EPAs will open developing economies to an extent never seen before. Poor countries are concerned that increased liberalization will allow international companies to ‘prey’ on their markets. ActionAid, an international NGO, fears consequences such as job losses, cuts in public services and government revenue losses.

The issue gets more complicated as the World Trade Organization (WTO) and its members have a word to say as well. Other developing countries - those who are not among the 77 offered EPAs - are unlikely to accept such favouritism. One could also argue that the current trade agreements are not too effective either – since they have not delivered a growing share of exports to Europe. Is there a need for a complete overhaul of trade policies?

What should Europe’s socialists do to create more fair trading relations with developing countries?

Tags: Africa, development, fair trade