Business, Union join fight against EPA

THE private sector and organised labour, together with a host of civil society organisations, have joined Government in its fight to stop the European Union (EU) from splitting up the Southern African Customs Union (Sacu) and get the economic bloc to commit to crucial trade concessions.

The interim economic partnership agreement (EPA) with the EU ‘profoundly impedes prospects’ for regional integration, the Namibian Chamber of Commerce and Industry (NCCI) warned in a statement, applauding Government for not signing the controversial trade agreement.’We must reflect on the state of play and make sure that the EPAs work for everyone involved,’ NCCI Chief Executive Officer Tarah Shaanika said.Meanwhile, the National Union of Namibia Workers (NUNW) signed a joint statement accusing the EU of using ‘bullying tactics’ and a ‘divide-and-rule strategy’, and warning that the proposed EPAs are not in Africa’s interest.The statement, to be delivered to Trade and Industry Minister Hage Geingob and European Commission Head in Namibia Elizabeth Pape, was also signed by the Labour Resource and Research Institute (LaRRI), National Youth Council, Komeho Namibia Development Agency, Do O.D. Namibia and TKMOAMS.The protest comes as the Sacu Council of Ministers prepares to meet in Windhoek this week to discuss, amongst others, the EPA threat to the world’s oldest customs union.Botswana, Lesotho and Swaziland’s (BLS) signing of the interim EPA while Namibia and South Africa demand further negotiations has divided Sacu, and observers fear it spells the end for the body many regard as the building block for the proposed Southern African Development Community (SADC) customs union.South Africa has threatened to tighten border controls following the BLS signature to protect its struggling clothing and textiles industry against the dumping of cheap EU imports via these countries. It has also proposed revising the revenue sharing formula of the Sacu pool.’Certain duties between the EU and the BLS countries would be lower than the Sacu rates, hence the BLS contribution to the common revenue pool would decrease. We are concerned that a decrease in Sacu revenue will result in reductions in Government spending on health and education, thereby hitting the rural poor the most,’ the joint statement reads.Sacu is one of Namibia’s major revenue sources. Some N$9 billion from the customs pool are expected to flow into state coffers this year.Namibia’s annual exports to the EU, on the other hand, are worth about N$330 million.The NCCI said it is ‘wary’ of the fact that the interim EPA represents a threat to regional integration efforts within Sacu and the Southern African Development Community (SADC).’We value regional economic integration with SADC and we see a lot of opportunities for Namibia emanating from this integration. However, the interim EPA in its current form is countering the SADC integration efforts and harm Sacu,’ the chamber said.’EPAs must help our countries to expand their economic activities and exports, but not simply increase the market share of European companies in our region,’ the NCCI said. In their joint statement, civil society accuses the EU of pressurising the BLS countries to agree to the interim EPA, thereby igniting discord between Sacu members.’The EPAs are clearly part of a designed new scramble for Africa and a divide-and-rule strategy by the EU, threatening African unity and regional integration,’ they say.Civil society also protested against the EU refusing to put agreed declarations on infant industry protection, food security, export taxes and free flow of goods in writing.’Despite having an uncertain legal status, these declarations are too vague to be legally useful if it comes to a dispute with the EU,’ they warn.’Given that the EU is only willing to incorporate the ‘agreed’ texts in the final EPA, fears are that this would increase the EU’s leverage to get in the final EPA the whole range of issues that Angola, Namibia and South Africa (ANSA) have long rejected as part of the EPA negotiations.’The joint statement continues to say that the current EPA negotiations are not about the development of the SADC-EPA countries anymore. Rather, it is now a case of every SADC-EPA country having to fend for itself legally not to lose out in case of a dispute with the EU.’This is unacceptable and the original idea of the Cotonou ‘partnership’ between the EU and the SADC-EPA seems dead and buried,’ civil society says.The joint statement demands that the EU stop its agricultural subsidies before it expects African countries to open up its markets. Countries must also be allowed to decide for themselves at what pace they can open up their markets to European goods.’African countries must retain the right to protect certain sectors of their economies,’ the statement reads.The EU must also stop any demand to negotiate about trade in services, rules for investment competition and government procurement with EPAs, civil society demands.’We believe the issues raised by the Namibian government are valid and need to be addressed,’ they say.The NCCI urged Government to ‘firmly continue seeking strong and unequivocal written assurances that what has been agreed in negotiations will be honoured’.jo-mare@namibian.com.na