Debate: Future of EU-Africa trade relations
Date: WEDNESDAY, 22 JUNE 2022
Speaker: Olivér Várhelyi
Language: EN

Today’s debate on the future of EU-Africa trade relations is crucial as it comes at a time of unprecedented geopolitical tensions created by the aggression of Russia against Ukraine and, as underlined in your draft report, the Commission will closely monitor the impact of the war, especially on food supplies to the poorest countries in Africa.  The relationship with Africa is a priority for the EU. We remain its first development assistance donor and trading partner, accounting for 26% of Africa’s total trade in 2021. We are by far its largest export market ahead of China, India and the US, and the main provider of foreign direct investment.  Africa is a dynamic continent in demographic and economic terms and rich in natural resources. In 2021, the African Development Bank noted that Africa’s economy was quick to rebound following the pandemic, and its real GDP growth was near to 7%. At a time of mounting insecurity and threats, wars, terrorism, uncontrolled migration and environmental degradation, trade policy can contribute to fostering stability, common values and essential human and social rights by building strategic interdependencies between the EU and African countries.  Our strengthened partnership with Africa will help to foster economic diversification and inclusive growth. The recent EU—African Union summit recognised that our trade agreements contributed to the deepening of trade between the two continents and that we should continue to work towards the progressive and mutually—beneficial integration of our markets. That is the long—term goal of a two—continent free trade agreement based on successful implementation of the African Continental Free Trade Area, which builds on Africa’s regional economic communities and the Economic Partnership Agreements, many of which have been signed with the EU. Support for economic integration is one of the key objectives of these agreements, and the EU, together with Member States, is strongly committed to accompany our African partners under the Team Europe Initiative on economic integration ‘Support to the African Continental Free Trade Area’ which covers, among other areas, quality infrastructure and market access, trade facilitation across strategic corridors, trade in services, competition, digital trade and intellectual property rights.  Your draft report rightly insists on sustainable development. The Commission shares this priority and is promoting sustainable development through its dialogues under Economic Partnership Agreements, the Sustainable Cocoa Initiative and the recently—started negotiations on Sustainable Investment Facilitation Agreements. The funding under the EU Africa Global Gateway Investment Package of EUR 150 billion will also help to meet sustainability objectives, while using a Team Europe approach. As a follow up to the summit, the Commission is now working on setting up a high—level dialogue on trade and economic integration. It will be an important channel of communication, especially in the light of current challenges. The Commission is also working on the possibility of harmonising rules of origin. This would complement the support that the Commission is also providing to African partners, in cooperation with the World Customs Organisation, for the effective implementation of the African Continental Free Trade Area rules of origin and support to the development and strengthening of value chains in Africa.  Finally, your draft report also puts emphasis on modernising the Economic Partnership Agreements. These agreements have enabled us to build a predictable trade relationship with African countries, which is highly appreciated by businesses both in the EU and in Africa. These agreements must help to improve, increase and even further intra-African trade and support the African Continental Free Trade Area process.  The Commission will continue to work effectively to implement the economic partnership agreements and to widen them geographically and deepen their content with African partners that are willing to do so. This will allow us to reap the full benefits of our trade and investment relations while promoting international environment standards in line with the EU Green Deal and the universal values of human rights, including labour rights, which the EU strongly promotes globally with all its partners.  I am looking forward to hear your views.