The European Union’s trade agreement with six southern African countries needs to be significantly revamped in order for the EU to maintain its influence, a prominent Member of the European Parliament (MEP) has cautioned.
The European Commission has enlisted a consortium headed by BKP Economic Advisors GmbH/SQ Consult B.V to conduct an external evaluation study on the EU’s economic partnership agreement with six members of the Southern African Development Community (SADC) as part of a broader review of the agreement. The evaluation study is anticipated to be finalized by April.
In a report endorsed by MEPs in Strasbourg last week, the European Parliament emphasized that changes in geopolitics affecting EU-African relations and EU-SADC relations, as well as the increasing presence of other actors like China, necessitate a significant enhancement of the EU’s offerings to SADC countries.
“This necessitates more than just enhancements in trade policy. Essentially, it requires the adoption of a mutually beneficial and partnership-oriented approach to relations with SADC countries and other African nations,” stated Joachim Schuster, the German MEP who authored the report, in an interview with EUobserver.
Schuster also highlighted the importance of climate partnerships that can attract both private and public investments to the region. He suggested that achieving this should involve additional agreements rather than reopening the economic partnership agreement itself.
While the EU remains the primary trading partner for SADC countries, nations like Mozambique, Namibia, South Africa, and Botswana have witnessed a significant rise in trade volumes with China.
Namibia, for instance, saw its trade with the EU nearly double from €1.1bn in 2016 after signing the EU EPA to €2bn, but its trade with China increased almost nine-fold, from €0.3bn to €2.6bn.
Schuster emphasized the need to address the development needs and aspirations of SADC countries beyond the traditional free trade framework, focusing on fostering comprehensive cooperation that promotes local value addition and sustainable development, particularly in sectors like renewable energy.
The economic partnership agreement with SADC is considered one of the EU’s few successful attempts at brokering trade deals with African regional blocs and is the only one that has been fully ratified and implemented.
However, the EPAs have faced criticism from some African states and civil society groups for not providing enough opportunities for SADC countries to develop supply and value chains and industrial bases.
MEPs recently approved an EPA between the EU and Kenya, breaking a decade-long deadlock. The agreement will grant duty and quota-free access to the EU market for Kenya’s exports, primarily agricultural produce and flowers.
The pact closely resembles the EU-East African Community agreement from 2014, with the inclusion of clauses addressing climate change being a notable addition.
