Malawi in race against time as Sadc, EU sign landmark trade agreement
Six Southern African Development Community (Sadc) countries have concluded talks with the European Union (EU) on a landmark trade agreement, but Malawi and other countries which opted to negotiate the deal under a Comesa configuration now face a race against time to conclude the talks ahead of its October 2016 deadline.
The Sadc countries include Botswana, Lesotho, Mozambique, Namibia, South Africa and Swaziland while Malawi, which had previously been dillydallying on the matter, among over seven Sadc missing out.
Malawi’s new administration recently stated it will review whether to continue talks with EU on the Economic Partnership Agreements (EPAs), but the move came just a year after returning to a negotiations, table it had previously abandoned under president Bingu wa Mutharika.
Principal Secretary for Trade, Christina Zakeyo, could not immediately react to the development yesterday and requested for more time.
However, EU Commissioner for Trade Karel De Gucht described the agreement with the Sadc configuration in a statement as “a foundation for an economic partnership that is lasting and mutual beneficial.”
The statement added: “The agreement takes into account the differences in the level of development between the EU and its African partners. It will open a long-term perspective of duty and quota free access to the EU market for products from Botswana, Lesotho, Mozambique, Namibia and Swaziland, while South Africa will trade with the EU on the basis of improved conditions that build on existing EU-South Africa Trade Development and Cooperation Agreement (TDCA).”
Minister of Trade Joseph Mwanamveka last month told The Nation government will hold consultations on the matter, but said talks will continue.
“Obviously, our current position is that we will immediately seek guidance on the matter. We will come up with a position on a technical level, but we will have to seek views of the leadership and others. Meanwhile, we will continue with discussions and we can reveal that there are scheduled discussions in Swaziland later in the month,” added Mwanamveka.
The EU said it was it still optimistic the new administration will continue with the talks’ process and successfully conclude the agreement.
“The EU remains committed to engaging with the current government on the benefits of signing an EPA, just as it has with previous governments. The EU willingness to agree mutually beneficial, developmental and WTO compatible trading arrangements remains unchanged. Ultimately, the decision on the type of trading arrangements Malawi will continue to have with the EU rests with the government,” said head of political, press and information section at EU embassy, James Dolan.
The EPA is an agreement between the EU and African, Caribbean and Pacific (ACP) group of countries aimed at promoting trade between the two groupings – and through trade development, sustainable growth and poverty reduction.
