EPAs must now address poverty, urges minister

from the Citizen, Tanzania

The GDP of Africa increased by 5 percent last year, while the continents world trade declines. A politician from Tanzania speaks out on the importance on trade aggrements with it's neighbors. - Kale

By Polycarp Machira

The government has said negotiations between the Africa, Caribbean and Pacific (ACP) zone and the European Union should unequivocally address poverty reduction and wealth creation as key to envisaged economic partnership agreements (EPAs).

Finance and Economic Affairs minister Mustapha Mkulo (pictured) made this affirmation while opening a conference on accelerating regional integration in Eastern and Southern Africa and the Indian Ocean Region (ESA-IO) in Dar es Salaam yesterday.

He said deliberations on integration should also recognize peculiarities and differences among African countries as well as Caribbean and Pacific states, noting that they are by no means a homogenous group.

''Optimal integration outcomes can be realized if the process of integration is properly thought through and owned by countries which are integrating,'' he said.

African regional integration and deepening of the African-Caribbean and Pacific integration process must be underscored by sound mutually beneficial trade cooperation arrangements among the countries, he further stated.

Since 1975 the ACP countries, under the Lome Convention series, have in theory enjoyed the European Union market access, duty free and quota free.

In practice this privilege of market access to the EU has delivered little in economic results, he pointed out.

The minister, standing in for President Kikwete at the function, said over the years, the market share of products from the ACP countries to the EU has been declining.

ACP has lost market share to non-ACP countries in the process, he stated.

Studies have revealed that the cost of production in Sub-Saharan Africa is relatively higher compared to Asia or Latin America, thus ACP countries do not produce goods meeting standards of the EU market, the minister noted.

Mr Mkulo said a key issue that should always be considered is drawing up rules for desirable integration and economic partnership agreements.

These should be trade rules that will result in improving the quality of life in the world, in particular the reduction of widespread poverty, he emphasised.

European trade commissioner Luis Michel told the gathering that the EU council of ministers was convinced that the main objective of negotiation with ACP regions is to reach a durable economic partnership.


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