Germany’s development minister has sparked a debate by
calling for EU tariffs to be waived on African goods. Critics question
whether import duties are really the issue, or are there other barriers
to trade?
calling for EU tariffs to be waived on African goods. Critics question
whether import duties are really the issue, or are there other barriers
to trade?
The European Union can boost development to and stem migrant flows
from Africa by completely opening its market to the region, German
Development Minister Gerd Müller said on Wednesday.
from Africa by completely opening its market to the region, German
Development Minister Gerd Müller said on Wednesday.
“Open the market for all African goods,” Müller told Die Welt newspaper, adding that the European market is effectively closed to Africa at present.
Brussels has the power to “give the continent a new status — also politically,” he said.
At
the European level, Müller wants to see the introduction of an Africa
Commissioner who will connect the numerous threads that make up the EU’s
Africa policy. He also called for an EU-Africa Council to meet
regularly.
the European level, Müller wants to see the introduction of an Africa
Commissioner who will connect the numerous threads that make up the EU’s
Africa policy. He also called for an EU-Africa Council to meet
regularly.
But above all, his call is about trade,
where agricultural products from Africa are free to be imported into the
EU duty and quota-free.
where agricultural products from Africa are free to be imported into the
EU duty and quota-free.
Müller,
who is a politician for the Christian Social Union — the Bavarian
sister party of Chancellor Angela Merkel’s Christian Democrats — said he
would work towards the creation of a new EU-Africa treaty in the two
years leading up to Germany’s presidency of the EU’s executive body, the
European Council, in 2020.
who is a politician for the Christian Social Union — the Bavarian
sister party of Chancellor Angela Merkel’s Christian Democrats — said he
would work towards the creation of a new EU-Africa treaty in the two
years leading up to Germany’s presidency of the EU’s executive body, the
European Council, in 2020.
Each EU state assumes a six-month rotating presidency of the Council and Germany’s turn will run from July to December 2020.
Criticized for little action
But within hours of the ideas being made public, they were rounded upon by his political opponents, and labeled a “smokescreen.”
The
chairman of the Bundestag’s Committee for Economic Cooperation, Olaf in
der Beek, of the business-friendly Free Democratic Party (FDP), said
Müller “must stop talking and start acting,” in an apparent sign of
impatience at the speed of German-led plans to help boost Africa’s
economy, which he said had been mooted for three years.
chairman of the Bundestag’s Committee for Economic Cooperation, Olaf in
der Beek, of the business-friendly Free Democratic Party (FDP), said
Müller “must stop talking and start acting,” in an apparent sign of
impatience at the speed of German-led plans to help boost Africa’s
economy, which he said had been mooted for three years.
The Green
party’s spokesman for development policy, Uwe Kekeritz, questioned why
Müller was backing a free trade plan for Africa, when previously he
backed the EU’s Economic Partnership Agreements, which prevented such a
market opening. The agreements created the intention to reduce trade
tariffs on both sides, but have hit many roadblocks.
party’s spokesman for development policy, Uwe Kekeritz, questioned why
Müller was backing a free trade plan for Africa, when previously he
backed the EU’s Economic Partnership Agreements, which prevented such a
market opening. The agreements created the intention to reduce trade
tariffs on both sides, but have hit many roadblocks.
Roland Süss of the anti-globalization group Attac told the German daily Frankfurter Allgemeine Zeitung (FAZ) it would be difficult to achieve free trade between two continents that are so unequal.
He
said many African states have reduced their tariffs on foreign goods —
in some cases by up to 90 percent — which has just opened the
floodgates to low-cost European products, many of which are heavily
subsidized by the EU.
said many African states have reduced their tariffs on foreign goods —
in some cases by up to 90 percent — which has just opened the
floodgates to low-cost European products, many of which are heavily
subsidized by the EU.
Africa not benefitting
“Subsidized
agricultural products from Europe are flooding African markets and
destroying local smallholder structures,” Süss told FAZ.
agricultural products from Europe are flooding African markets and
destroying local smallholder structures,” Süss told FAZ.
The
EU forecasts that its agricultural subsidies will total €365 billion
($423 billion) between 2021 and 2027, while Brussels’ entire
European-Africa policy is worth just €39 billion a year.
EU forecasts that its agricultural subsidies will total €365 billion
($423 billion) between 2021 and 2027, while Brussels’ entire
European-Africa policy is worth just €39 billion a year.
Suss’s
response was backed up by Sahra Wagenknecht from the left-wing Linke
Party, who agreed that the agriculture sectors at home and in Africa
were suffering due to the EU-Africa trade deals.
response was backed up by Sahra Wagenknecht from the left-wing Linke
Party, who agreed that the agriculture sectors at home and in Africa
were suffering due to the EU-Africa trade deals.
“Instead of more
free trade to create more reasons for migrants to leave, we finally
need to stop plundering Africa’s raw materials,” she said, adding that
“fair trade” was a more appropriate term.
free trade to create more reasons for migrants to leave, we finally
need to stop plundering Africa’s raw materials,” she said, adding that
“fair trade” was a more appropriate term.
Fall in imports from Africa
Despite
duty-free imports (apart from arms and ammunition) already being in
place from the 32 poorest countries in Africa and the 12 countries with
which the EU has Economic Partnership Agreements, EU imports from Africa
have fallen by almost 40 percent in recent years, according to the
German development minister.
duty-free imports (apart from arms and ammunition) already being in
place from the 32 poorest countries in Africa and the 12 countries with
which the EU has Economic Partnership Agreements, EU imports from Africa
have fallen by almost 40 percent in recent years, according to the
German development minister.
Müller believes it is not so much a
problem of tariffs and import quotas, but other obstacles that make
market access so difficult for African companies. In many cases, they
produce goods that do not meet strict European quality standards, for
example foodstuffs, he said.
problem of tariffs and import quotas, but other obstacles that make
market access so difficult for African companies. In many cases, they
produce goods that do not meet strict European quality standards, for
example foodstuffs, he said.
European Parliament politician Elmar
Brok of the CDU agrees that it is crucial to help African companies to
meet the corresponding import conditions into the EU.
Brok of the CDU agrees that it is crucial to help African companies to
meet the corresponding import conditions into the EU.
“Fair and
good trading conditions are key to achieving better living standards in
Africa. And such measures also ensure less migration,” he told German
public broadcaster ARD on Thursday
good trading conditions are key to achieving better living standards in
Africa. And such measures also ensure less migration,” he told German
public broadcaster ARD on Thursday
