Thursday, July 07, 2005

Economics: Trade with Africa: Dr Mukhisa Kituyi says Africa not ready for duty-free trade


G8 Watch:

Trade Liberalisation: Africa not ready yet

by Kaburu Mugambi, Daily Nation, Daily Nation, Nairobi, Kenya


Kenya’s Trade and Industry minister says Africa needs more time to open its markets for duty-free European products. Speaking in London yesterday, Dr Mukhisa Kituyi challenged the British government to use its European Union presidency and persuade other member states to rethink their free-trade plans.

In a statement from the British capital, he said many African countries feared that free trade would threaten the livelihoods of millions of farmers. [ continued below ... ]



Q ... But what is Kityui actually asking for here? Is it an Africa-privileged trade, wherer African countries impose heavy duties on imports from Europe and North America? with little or no duties on imports from other African countries? And exports to Europe and North America entering those countries with no duties at all, and no subsidies for the European and North American producers, especially in agriculture, Africa's largest export sector? - Politicarp

---------------- Mugambi's article continues -------------------

Dr. Kituyi will set out his concerns at a press conference on Monday organised by Traidcraft, the leading fair trade charity.  He will discuss free trade implications with British Trade secretary Alan Johnson and International Development secretary Hilary Benn.

The conference on the EU and Africa is to be addressed by British Trade minister Ian Pearson.  Dr. Kituyi’s plea comes days before London takes over the EU presidency from Luxembourg on July 1.

The British government has issued a statement questioning the speed and level at which African countries should open their markets to products from the EU under the proposed economic partnership agreements (EPAs).  But last month leaked documents showed Europe’s trade commissioner Peter Mandelson seeking to exploit close relationship with British prime minister Tony Blair to persuade him to revise London’s stance on the deals.

Documents emerged during the EU-Africa talks on agreements, which African states fear threaten the lives and livelihoods of 750 million of the world’s poorest people.

Dr. Kituyi said he welcomed Britain’s commitment not to press free trade policies on Africa.  "The challenge for Britain now is to stand firm in its position and use its EU presidency to ensure this rhetoric translates into real changes on the EPAs and WTO policy," Dr. Kituyi said.  The EU is organising trade talks with 16 Eastern and Southern African countries to induce them to allow freer access to its products, saying it would also boost regional trade.

The talks, which will gradually involve all members of the 79-state Africa, Caribbean and Pacific Group, are intended to seal the EPAs with the African nations.

The EPAs are based on the Cotonou agreement signed in Benin in 2000 giving the ACP group a special trade status within the EU.

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