New EU-Africa trade pacts flounder
10.12.2007 - 09:29 CET By Honor Mahony
EU attempts to get an overall deal with African states on new trade rules failed over the weekend during a difficult summit where there were also clashes over human rights issues.The European Union has been aiming to get all African countries to sign up to new economic partnership agreements (EPAs) before an end-of-year deadline.
But some African politicians made clear at the meeting in Lisbon on Sunday (9 December) that they were pulling out of the negotiations."It's clear that Africa rejects the EPAs," said Senegalese president Abdoulaye Wade, according to AFP.
The EPAs were supposed to be a key part of a strategic package that would give Europe more of a foothold in Africa, directly competing with China which has been investing heavily in Africa for years.A new trade regime has to be in place by the end of the year, according to a ruling by the World Trade Organisation (WTO), which deemed illegal the EU's current regime with African states under which preferential trade systems are in place for former colonies.The EU says that if the new rules are not put in place, African countries could lose tariff-free access to European markets .European Commission president Jose Manuel Barroso said the EPAs were "a good offer for Africa," with the EU now having to take a decision on whether to impose tariffs on all but the poorest African states if the deadline is not met.Under the EPAs, the EU is offering duty-free terms for most African imports on condition that African markets gradually open up to competition.
More at: http://euobserver.com/9/25304
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The article is an example of how strategic moves can be applied to change the decision made. The structure of this game tree from Africa's point of view is a) agree and start working with Europe in addition to China or b)refuse and continue working with China. Africa's decision has some historical issues mixed with the economic reasons to reject closer economic relationships with Europe. On the other hand European perspective is very goal oriented and they will not give up that easily on their decision. After receiving a negative answer they threaten Africa with tariffs on goods which are not beneficial for the developing countries on the continent.
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