Africa’s trade agreements with Europe have been in place for over four decades, with the goal of promoting mutually beneficial trade. However, the reality on the ground tells a different story. In Ghana, for example, the country’s export surplus is largely driven by the export of gold, cocoa, and oil. But despite this surplus, the country’s chicken farmers are struggling to compete with cheap imports from Europe.
The European Union’s trade agreements with African countries, including Ghana, have led to a situation where 80% of chickens in Ghana are imported from Europe, the US, or Brazil. These imported chickens are often 35% cheaper than locally produced ones, making it difficult for Ghanaian chicken farmers to compete.
Trade Agreements and Their Impact
The Lome Convention, signed in 1975, was the first major trade agreement between the European Community and the Organisation of African, Caribbean and Pacific States. This convention and its successors, including the Cotonou and Samoa agreements, have shaped the trade relationship between Europe and Africa. However, these agreements have not always resulted in mutual benefits for African countries.
Regional Differences
While some African countries, such as Libya and Algeria, have benefited from the export of oil and gas, others have struggled to compete with European imports. In Ghana, the poultry industry is a case in point. Despite the country’s efforts to promote local production, the influx of cheap imports has made it difficult for farmers to survive.
According to Charles K Donkor, chair of the Poultry Farmers Association in the Ashanti region, the situation is dire. “If you produce the chicken, they’re not buying it. So you can’t produce it,” he said. Donkor’s farm, which employs 200 people, has had to switch to producing eggs instead of meat due to the competition from imports.
The impact of these trade agreements is not limited to Ghana. Across Africa, countries are struggling to compete with European imports. The World Trade Organization has noted that African countries face significant challenges in accessing European markets, despite the existence of trade agreements.
- 44 African countries have duty-free access to the EU’s internal market
- The EU’s “everything but arms” rules apply to trade with developing countries
- African economies tend to have an overall trade surplus with Europe, driven by oil and gas exports
In conclusion, Africa’s trade agreements with Europe have not always resulted in mutual benefits. The influx of cheap imports has made it difficult for local industries, such as the poultry industry in Ghana, to compete. As African countries continue to navigate the complexities of global trade, it is essential to consider the impact of these agreements on local economies and industries.
