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Oxfam warns EU free trade deals with poorest countries are unfair - Call for Ireland to back a comprehensive review

27 September 2006

The European Union must urgently change its negotiating position on free trade deals with some of the world's poorest countries or risk sinking them further into poverty, international agency Oxfam said today.

On the day of the 4 th anniversary of the opening of negotiations between the European Union and the African, Caribbean and Pacific countries (ACPs), Oxfam said that Europe is still failing to put development at the heart of these trade agreements.

In a 15-page report entitled "Unequal Partners", Oxfam says that the proposed Economic Partnership Agreements (EPAs) will hurt rather than help the ACP countries, 39 of which are Least Developed Countries (LDCs). The development agency says that EPAs threaten to expose developing country farmers to direct and unfair competition with highly subsidised EU producers. Opening markets would also threaten much needed jobs in ACP countries as well as undermining regional integration processes.

Ireland should back a revision of the European Commission's mandate given to reflect key concerns coming from ACP regions and civil society groups, Oxfam says.

Oxfam calls on Europe to use the formal review of the EPAs process over the next few months to redirect negotiations onto a different path. For instance, the European Commission ought to drop its ambitions of having reciprocal market access with ACP countries. Instead, Europe must focus on further opening its own market to ACP exporters.

The recent government White Paper on Irish Aid stated that 'the EPA negotiations must result in agreements that are supportive of ACP countries' development needs and their poverty reduction efforts' but if the European Union's position remains unchanged the negotiations will not achieve these results Oxfam says

"It's clear that the European Commission's position needs to be seriously revised. Many ACP countries are deeply concerned about the way negotiations of these free trade deals are going. The future of some of the world's poorest people is at stake and Europe refuses to heed their concerns. That is simply unacceptable", said Colin Roche , Oxfam Ireland 's Campaigns and Advocacy Executive

The development agency says that through EPAs, ACP governments stand to lose control over key policy instruments such as tariff policy, competition and investment rules that all developed countries have used to progress.

Oxfam warns that key ACP concerns are being ignored. Europe is pressuring ACP governments to include competition policy, investment, and government procurement in the final agreement, despite the fact that developing countries have repeatedly objected to this - both at the WTO and in EPAs negotiations.

"To have a fruitful trading partnership between Europe and its ACP partners, you can't have one side constantly dictating the rules of the game. It is unacceptable for the EU to bring back to the table issues that have been unanimously rejected by poor countries", said Luis Morago.

Oxfam highlights that if EPAs are to be pro-poor deals they should not lead to losses in government revenue and employment.

Aid promised by the European Union to the ACP - such as the European Development Fund (EDF) package - should not be made conditional on the signature of an EPA, Oxfam concluded.

In early October Oxfam Ireland and the Irish Congress of Trade Unions will host the visit of a Tanzanian agricultural worker and a Zimbabwean trade unionist to Dublin, Cork and Belfast to raise awareness of the potential impact of Economic Partnership Agreements on Africa.

Contact / Interviews

Oxfam Ireland's Media Executive Paul Dunphy on 00353 1 6040706
or email paul.dunphy [at] oxfamireland.org.

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