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Africa's exports to the European Union (EU) amounted to more than €116 billion in 2016. EU-Africa relations are based on the 2000 Cotonou Agreement with African, Caribbean and Pacific (ACP) countries, which grew out of the 1975 Lomé Convention. This is known as ‘special trade’. It provides access not only to both recent and historical data from the EU Member States but also to statistics of a significant number of third countries. This is even more important in a globalised world in which economies tend to cluster together in regional groups. However, more and more free trade pacts are been signed across Africa, opening ever more doors to new markets right within the country and this may upset the traditional foreign trade reliance. Information on commodities exported and imported is presented according to the Standard international trade classification (SITC). An EU-UK trade deal will reinforce the certainty and continuity that South Africa, Botswana, Lesotho, Namibia, and Eswatini – plus Mozambique are seeking in their relationship with the UK. EU Aid for Trade can be used as a catalyst to generate the total EUR 44 billion of private and public-sector investment unlocked by the EU External Investment Plan. AfCFTA negotiations clearly take into account integration benefits generated by the Regional Economic Communities (RECs). This compares to EUR 125 billion for China and More actions covering all aspects of the AfCFTA are being developed upon clear demand of and in close partnership with the African Union Commission. The TDCA established a free trade area that covered 90% of bilateral trade between the EU and South Africa. Trade is an important indicator of Europe’s prosperity and place in the world. Most African countries are exporting to the EU on a duty-free or preferential basis. Trade agreement talks began actively in 2000 after Europe and 79 countries from Africa, the Caribbean and the Pacific (ACP) signed the Cotonou Agreement on trade, aid and political relations. EU-Africa Trade Relations: The Political Economy of Economic Partnership Agreements Peter Draper1 ECIPE Research Fellow draperp@mweb.co.za 1 I am grateful to Roderick Abbott, Fredrik Erixon, and an anonymous reviewer for useful insights and comments received on an earlier draft. In September 2018 European Commis­sion President Jean-Claude Juncker declared that the EU was willing to enter into trade talks with Africa as a whole if the AfCFTA came into effect. • Given the AfCFTA’s central role in African economic development, the EU should prepare and implement its trade-related support in a way that is supportive of the national, regional and continental dynamics of economic integration. International trade aggregated and detailed statistics disseminated via the Eurostat website are compiled from COMEXT data according to a monthly process. In contrast, there were trade in goods surpluses with Eastern and Southern Africa (both EUR 2.4 billion) and Northern Africa (EUR 8.4 billion). As a result, yields have increased and larger and safer amounts of the crops are available for production and export. Cyprus (25.3 %), Portugal (21.1 %) and Malta (18.6 %) had the highest shares for exports to Africa in their total exports to countries outside the EU. South Africa has enjoyed preferential market access to the EU under the Trade, Development and Cooperation Agreement (TDCA) since 1 January 2000. For Africa and the European Union (EU) to achieve the much-talked about mutually beneficial trade cooperation, as well as economic integration among countries, all EU trade-related support at the national, regional, and continental levels should be reorganised into African Continental Free Trade Area (AfCFTA) support, a new report by the European Think Tank Group (ETTG) has said. However, afterwards imports from Africa decreased, while exports continued to grow. Africa continued to receive the largest share. This plan aims to increase investment and job creation and thus also supports the objectives of the AfCFTA. An overview of the EU-West Africa EPA. EU officials said privately there are plans to ramp up existing funding channels to ensure the EU can back projects such as roads and rail routes, all of which are needed if the continent is to complete its recently launched African Continental Free Trade Area (AfCFTA). The EU is South Africa’s main trading and investment partner. So there are tariffs that affect some South African goods. Now all Africa needs are roads and rail. Gulf of Guinea 3. While the AfCFTA entered into force on 30 May 2019, the extraordinary AU Summit on the AfCFTA held in Niamey on 7 July 2019 launched the operational phase of the AfCFTA with the agreement that trading under the AfCFTA will commence on 1 July 2020 and with the decision to award the hosting of the AfCFTA Secretariat to Accra, Ghana. Product classification o To facilitate foreign direct investment into Africa o Provide a … As the trade element is the most contentious, it is the focus of this analysis. The FTA aims to ensure better access to the EU market for South Africa and access to the South African market for the EU. Big econo-mies like Nigeria and South Africa are talking tough, but others are more circum - The analysis uses UNCOMTRADE data sourced from the International Trade Centre (ITC) Trade Map, and is expressed in United States Dollars. But Europe still leads the field for in- In 2019, over 65 % of goods imported to the EU from Africa were primary goods (food and drink, raw material and energy). Unit of measure The growth rate was highest in Eastern Africa (5.7 %) followed by Western Africa (5.4 %) and Southern Africa (5.2 %). Africa’s relationship with the European Union (EU) is at a critical juncture as officials from both continents seek to conclude a successor treaty to the Cotonou Agreement (a trade and aid partnership signed back in 2000 and due to expire in 2020). The EU says it gives fully or partly duty-free access to 98.7% of imports coming from South Africa. It is called a FOB value (free on board) for exports and a CIF value (cost, insurance, freight) for imports. The FTA aims to ensure better access to the EU market for South Africa and access to the South African market for the EU. Trade, when taking into account asymmetries, can contribute to a fairer, inclusive and socially just global trading system. And it can get very complicated. As a result, the bulk of Africa’s export to the EU is unroasted green coffee and German manufacturers reap the rewards. EU-Africa trade and investment hold huge potential for the future. Africa and Europe share deep economic, cultural, linguistic, and political bonds. The liberalisation schedules were completed by 2012. After that, growing imports from Africa saw the trade surplus decline. BORRELL ON AFRICA: The EU’s High Representative for Foreign Affairs, Josep Borrell, used the backdrop of Michel’s visit to express the need for “a new, integrated strategy for and with Africa.” New trade deals basically the same as the old ones. The EU support to the AfCFTA can be categorised into: Support to the process includes direct support to the African Union Commission and its Trade and Industry Department where the AfCFTA negotiation support unit is embedded. The AfCFTA is the African continent’s most ambitious integration initiative, embedded in the Agenda 2063 of the African Union, whose main objective is to create a single continental market for goods and services with free movement of people and investments, thus expanding intra-African trade across the continent, enhancing competitiveness and supporting economic transformation in Africa. EU’s main trade obligations Europe and Africa have close historical, cultural and geographical ties. South Africa has enjoyed preferential market access to the EU under the Trade, Development and Cooperation Agreement (TDCA) since 1 January 2000. The largest export and import partner for Africa is the EU-27 with 31 % of exports and 29 % of imports. They correspond to the statistical value, i.e. to the amount which would be invoiced in case of sale or purchase at the national border of the reporting country. The Delegation of the European Union in Zambia is responsible for managing official relations between the European Union (EU) and the Common Market for Eastern and Southern Africa - COMESA. The EU executive has rapidly become concerned that China has usurped its position as Africa’s main partner when it comes to trade, investment and politics. It has also posted the greatest increase in demand for Africa’s higher value-added manufactures: these comprised $42 billion or 37 percent of its total imports from the region in 2017, up from $11 billion or 29 percent in 1997. Africa is the continent with the youngest population, with an average age of 21. Given Africa’s flirtation with socialism and protectionism from the 1960s through at least the 1980s, this is a welcome development. Asia’s trade surge Africa’s growing trade with Asia, especially China, is of concern to Europe, says Mr. Hasselbach. Africa is the continent with the youngest population, with an average age of 21. The European Union and its Member States are the African Union’s main partners in this endeavour and have been supporting the AfCFTA process from the very beginning. African countries and the EU cooperate through multiple frameworks such as: 1. the Cotonou agreement 2. the joint Africa-EU strategy In addition to these frameworks, the Council has adopted three regional strategies for the: 1. An overview of the EU-West Africa EPA. The EU says it gives fully or partly duty-free access to 98.7% of imports coming from South Africa. Data from the perspective of Africa (as used in figure 1) is based on statistics from UNCTAD, combining data from UN Comtrade, IMF, Eurostat, UNCTADstat and UNCTAD secretariat calculations. As the UK develops an independent trade policy outside of the EU, Africa appears to be moving in completely the opposite direction. If trade agreements are renegotiated between the EU and the UK and they (the UK) get less trade from the EU due to them leaving the EU other countries stand to gain, South Africa included, but based on the current size of trade between South Africa … EU-Africa Trade Relations: The Political Economy of Economic Partnership Agreements Peter Draper1 ECIPE Research Fellow draperp@mweb.co.za 1 I am grateful to Roderick Abbott, Fredrik Erixon, and an anonymous reviewer for useful insights and comments received on an earlier draft. The TDCA establishes preferential trade arrangements between the EU and South Africa, with the progressive introduction of a Free Trade Area (FTA). More twists and turns are likely to take place in EU-Africa trade relations before 2015, when TF agreement implementation should commence. The Economic Partnership Agreements (EPAs) are trade deals between Europe and regions in Africa, the Caribbean and the Pacific, designed to end preferential treatment of former European colonies. Kenya is part of a trade bloc called the East African Community (EAC), which includes Uganda, Rwanda, Tanzania, Burundi … In 2018, total trade in goods between the 27 EU Member States and Africa was worth EUR 235 billion – more than 30 % of Africa's total. In practice this means that the goods imported by the EU-27 from the United Kingdom were physically transported from the United Kingdom but part of these goods could have been of other origin than the United Kingdom. Europe is by far Africa's largest export market (35% of Africa's exports), followed by Africa itself (18%), China (11%), the USA (8%) and India (7%). Slovenia (EUR -149 million), Estonia (EUR -154 million), Portugal (EUR -252 million), Italy (EUR -4 billion) and Spain (EUR -8 billion). For extra-EU trade, the statistical information is mainly provided by the traders on the basis of customs declarations. For more on free trade agreements, see Douglas A. Irwin, “International Trade Agreements,” in David R. Henderson, ed., The Concise Encyclopedia of Economics. EU asks for formal consultations with Southern African Customs Union on trade in poultry. In 2019, 21 EU Member States had a trade in goods surplus with Africa. This page has been accessed 38,652 times. It’s Africa’s Turn to Leave the European Union The EU doesn’t treat the African Union as an equal partner. just 3.6 percent of world trade. Western Africa (7.1 %) had the highest growth rate, followed by Southern Africa (6.2 %) and Eastern Africa (5.4 %). Africa already has 122 million active users of mobile financial services – more than half the global total. Leaving the EU theoretically allows the UK to make independent trade agreements better tailored to individual African nations. In Ghana, a EUR 13 Million programme created safer production and harvesting processes on cereal crops, Ghana’s leading export commodity. EU data are compiled according to Community guidelines and may, therefore, differ from national data published by the Member States. According to the European Commission Directorate-General for Trade.The 10 largest trading partners of the European Union with their total trade (sum of imports and exports) in millions of euro for calendar year 2020 are as follows. The EU and its Member States remain the global Aid for Trade donor leader (32%) with an all-time high of EUR 13,5 billion in 2016. This page was last modified on 22 January 2021, at 15:32. o To facilitate foreign direct investment into Africa o Provide a … The EU is the largest market for Africa’s trade, accounting for $116 billion (34 percent) of the region’s total exports in 2017 (figure 3). A full description is available from Eurostat’s classification server RAMON. In 2019, 21 EU Member States had a trade in goods surplus with Africa. Yet the EU is also uniquely well-placed to offer Africa a true development partnership that is mutually beneficial for the two continents. Two years later, in 2016, the EU had a record surplus in trade in goods (EUR 33 billion). This will be driven forward by the complementary Single African Air Transport Market and the Protocol on Free Movement of Persons. The liberalisation schedules were completed by 2012. EU trade policy and Africa's exports The EU is Africa's main customer – especially for food and manufactured products. Therefore the United Kingdom is considered as an extra-EU partner country for the EU-27. The final regional EPA negotiations were only concluded in 2014. Germany's development minister has sparked a debate by calling for EU tariffs to be waived on African goods. And it can get very complicated. This strategy was agreed by the African Union and EU institutions, as well as by African and EU countries. Joint Africa-EU strategy The joint Africa-EU strategy was adopted in 2007 as the formal channel for EU relations with African countries. African Union sets goals for free movement of goods, services and people. This trend continued until 2012, when the trade deficit reached EUR 25 billion. For many African countries, the EU and its Member States are already major partners in aid, security, finance, and trade. The highest surplus, EUR 4 billion, was found in Belgium followed by Germany and France (both EUR 3 billion). EU-Africa free trade agreement ‘destroys’ development policy, says Merkel advisor. Methodology This factsheet provides an overview of how the EU's trade policy is encouraging Africa's exports - also comparing with the schemes put in place by other major trade partners of Africa. The EU trade agreements with North Africa could generate additional, large benefits if they either directly led to or at least incentivised behind-the-border reforms to make the North African countries more competitive in international markets. The EU is still Africa's biggest trading partner, accounting for 36 percent of all exports, ahead of China and the US. The EU plays a very prominent role in North Africa’s trade, representing by far the largest trading partner of countries in the region, on account of its size, geographic proximity, linguistic and colonial ties, and the existence of large North African diasporas in Europe. As the AfCFTA advances and becomes more consolidated, there should be more policy convergence and a simplification of rules. The final regional EPA negotiations were only concluded in 2014. This would only be logical given that the EU has for decades been en­couraging African regional integration. The EPAs were originally also meant to serve that end. The European Union negotiates free trade deals on behalf of all of its member states, as the member states have granted the EU has an "exclusive competence" to conclude trade agreements. The reason for this is that Africa is punished by the EU with a 7.5 per cent tariff charge on roasted coffee but non-decaffeinated green coffee is exempt. This Trade Data Update documents the trading relationship between Africa and the European Union from 2007 to 2016. Phase 1 focused on three protocols: trade in goods with its 9 annexes, trade in services with its 3 annexes and dispute settlement. But listening to the speeches and commentary of African leaders at the summit in the Ethiopian capital of Addis Ababa, two things were clear: First, while grateful for support and encouragement, they don't particularly care what the EU or anyone else wants, because Africa will chart its own future; and second, to fully make use of a free-trade deal that promises free movement of … Today it is responsible for the largest share of new in-vestment flowing to Africa, namely 23.9 per-cent in 2016; the top two EU countries, France and the United Kingdom, account for almost 5 percent each, while Germany occupies tenth place with just under 2 per-cent. Nigeria's President Buhari refuses to sign West Africa-EU free trade agreement. It analyses the type of goods exchanged and the shares of each EU Member State in those exchanges. While Brexit shocked the world and the EU, the contribution of the UK to South Africa's overall trade (while being positive) is relatively small, especially considering the size of Germany's contribution to South Africa's trade with the EU. Concerning trade in goods, the goal is set for 90% of products at zero duty across the continent. Spain (EUR 27 billion) led, followed by France (EUR 24 billion), Italy, Germany (both EUR 21 billion) and the Netherlands (EUR 16 billion). In the following years, both imports from and exports to Africa picked up, with imports growing slightly stronger. This was mainly due to increasing imports of machinery and vehicles from 7 % to 15 %. Through EU trainings, farmers have gained knowledge of techniques to manage bacteria levels during the production and harvesting processes. In the same period, the share of manufactured goods rose from 21 % to 32 %. Negotiations on Phase I Protocols on competition, intellectual property rights and investments are set to commence end of 2019. The EU is Africa’s biggest trading partner, accounting for 33% of total African trade in goods (exports and imports) worth EUR 270,8 billion in 2018.

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