The European Union (EU) has initialed an interim trade agreement with four
Southern African countries, the European Commission announced yesterday.
The agreement will apply initially to Botswana, Lesotho, Swaziland and
Mozambique, with Angola ready to join as soon as possible.
The EU's executive arm said South Africa and Namibia will also determine
their participation in the agreement in the coming days, adding the agreement
was open to other parties in the region to join when they wished.
"This is an historic step forward in the relationship between the EU and
Southern Africa," said EU Trade Commissioner Peter Mandelson, who is now on a
six-day visit to China.
The initial agreement includes a WTO-compatible market access schedule and
provisions on development co-operation and other issues.
The European Commission said both the EU and the Southern African countries
will continue negotiations towards a full Economic Partnership Agreement (EPA)
in 2008.
Currently, the EU is negotiating with the six regions of the African,
Caribbean and Pacific Group (ACP) of countries on EPAs, which are designed to
replace the existing Cotonou Convention signed in June 2000.
The commission had hoped to formally sign EPAs with ACP countries before
December 31. However, it appeared only possible so far to strike interim
agreements on goods, with more sensitive issues such as investment rules and
services to be left for further talks.
Although the EU said the new deal will help nearly 80 ACP countries develop
economies and attract foreign investment, aid groups and some ACP countries are
opposing the deal, saying it opens African economies up to too much competition
since the EU is demanding reciprocity of market access to ACP countries.