10.EU-Africa Economic Relations- Part I

Series Introduction

There have been several agreements between the EU and African countries recently including the EU -Kenya Economic Partnership ?Agreement which is at a finalisation stages, and the EU launching three programmes worth €110 million under Global Gateway in Zambia. Patrick’s Trade Digest will publish a series of editions that will cover the nature of EU – Africa relations, EU pacts with individual countries in Africa, their salient features, and what these deals mean for trade in Africa.

EU-Africa Economic Relations

David Luke Kulani McCartan-Demie, and Geoffroy Guepie in their recent publication ‘Africa’s trade arrangements with the European Union and China’ traces this complex trade relationship back to the early years of economic integration in Europe and the independence era in Africa- ?through the Yaoundé, Lomé and Cotonou Conventions which basically covered development assistance, finance and trade. Has the nature of the relationship, seen by some analysts as extractive, changed over the years? ?The hints lie in the EU’s open, sustainable, and assertive trade policy. There are three core objectives in this strategy f or the medium term namely (1) Supporting the recovery and fundamental transformation of the EU economy in line with its green and digital objectives;(2) Shaping global rules for a more sustainable and fairer globalisation;(3) Increasing the EU's capacity to pursue its interests and enforce its rights, including autonomously where needed. EU-deals with African countries therefore either collectively or individually should be seen from these lenses.

Legal Framework/Basis of EU- Africa Economic Relations.

EU engages with African countries through several trade arrangements. First is ??Everything But Arms (EBA)- scheme removes tariffs and quotas for all imports of goods (except arms and ammunition) coming into the EU from least developed countries (LDCs). Second is ?Economic Partnership Agreements (EPAs). These are negotiated between the EU and African, Caribbean and Pacific (ACP) countries. They open EU markets fully and immediately, whereas ACP partners open only partially to EU imports, over transitioning periods. Third is the standard Generalised Scheme of Preferences(GSP). GSP targets developing countries that are classified by the World Bank as lower or lower-middle income countries(LMICs) and do not have a preferential access to the EU market through another arrangement. The beneficiary countries can benefit from duty suspension for non-sensitive products and duty reductions (3.5 percentage points) for sensitive products across approximately 66 per cent of all EU tariff lines. Fourth is the Generalised System of Preferences (GSP)-Plus. The GSP+ is the special incentive arrangement for Sustainable Development and Good Governance that supports vulnerable developing countries that ratified 27 international conventions on human rights, labour rights, environmental protection and climate change, and good governance. Fifth ?is?the Euro-Mediterranean Association Agreements. These are reciprocal, semi-asymmetrical free trade area agreements, currently covering?Algeria, Egypt, Morocco and Tunisia. Finally, sixth is???EU Most-Favoured Nation (MFN) applying to Libya and Gabon. The trade deals subsequent editions will cover fall in these frameworks.

Can EU- Africa Economic arrangements Deliver Africa’ SDGs?

The European Commission reckons that EU-Africa trade and investment relations are built upon two key frameworks, the Africa-Europe Alliance for Sustainable Investment and Jobs of September 2018 and the Communication Towards a Comprehensive Strategy with Africa of March 2020.In 2021, the EU Commission Global Approach to Research and Innovation, Europe's strategy for international cooperation in a changing world. Through this BluePrint, the EU ‘aims to take a leading role in supporting international research and innovation partnerships, and to deliver innovative solutions to make our societies green, digital and healthy.’

Different Voices on EU-Africa Economic Relations

There have been different assessments of EU -Africa trade relations. For instance ?David Luke ?in ?argues that the EU’s fragmented approach results in hard borders for EU trade between African countries within the same customs union- hence?hindering creation of ?continental customs union could emerge from the divisions created by the EU. Others have also called for a Reconstruction of the Institutional Framework for Euro-African Relations. And in terms of Africa’s strategy, Olabisi D. Akinkugbe in his ?analysis of EU Commission’s Comprehensive Strategy With Africa??suggests that ‘African leaders must be cautious and find the best way to maximize this moment and the wave of “partnerships” for its own benefit. The author is currently working on research that seeks look at EU- Africa Economic relations from a trade integration perspective and it will contextualize in detail some of these views and arguments.

The Next edition will look at some of the recent economic agreements between the EU and African countries.

See you soon!