According to the "Stop EPA" Facebook group...
The consequences of EPAs:
- Developing countries must open their markets to European goods by eliminating tariffs on 80% of their goods within 15 years. For example, the Zimbabwe reduce its tariff barriers by 80% by 2022, the first 45% already be removed before 2012!
- Developing countries must eliminate their export duty.
- EPAs entails not only the liberalization of goods but also services, investment and government procurement (NOT a requirement from the WTO!). Eg ACP countries do not prioritize local companies against European to build up local production, which is a narrowing of the countries' policy space.
The cool thing for the EU is free access to ACP markets since European firms thus will have the same terms as locals in developing countries.
What is the problem?
- With the duty removed, the ACP countries lose a great resource on state budgets. It is estimated that African countries will lose approx. 2 billion. USD EPAs. For example, Zimbabwe lose 18.4 million. USD by signing the EPA.
- Tariff reduction will also result in Cote d'lvoire will lose 44% of the state budget.
- With free access for European companies, the ACP countries hard to protect their own production, which will lead to unemployment and poverty, as local companies will easily be ousted by European firms.
Other important facts:- If the ACP countries do not sign the EU has threatened to cut sharply on their aid.
- Many countries would like to be compensated for the amount they lose by signing. The EU has been accommodating to. Unfortunately, there are just examples of the opposite! Including In the Caribbean, where compensation money has not yet arrived.
- Farm subsidies to European farmers make it impossible for ACP agriculture to compete in the EU.
- EU regional divisions in the African country of children goes against the already existing initiatives in Africa. Ie EU supports and divides Africa into a false splitting, which means that they destroy their current attempt to work together regionally.
- Although the EU believes that there should be free trade between countries, there are still barrier which means that it is difficult for ACP countries entering the EU market. For example, the ACP countries to document where all goods coming from - it will say that they might know what region every good comes from and the farmer who has outgrown it. It can be complicated for many at this time and therefore it will prevent a lot of exports from ACP countries.
THEREFORE...
get active and show your displeasure!
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