EU interim trade deals may harm poor economies

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DAKAR, Oct 30 (Reuters): A European Union proposal for poor countries to sign interim trade deals if they miss a December 31 deadline for regional pacts with Brussels may undermine regional economic integration efforts, a go-between group said yesterday.
The European Union hopes to sign "economic partnership agreements" (EPAs) with six regional groupings of ex-colonies before a World Trade Organisation (WTO) waiver on its preferential trade measures for them expires at the end of the year.
With no deals signed and time running out, the EU's European Commission executive said last week it could sign "stepping stone" agreements with smaller groups of countries wishing to avoid disruption to their goods exports to Europe after December 31.
Sanoussi Bilal, an EPA expert working for a Dutch foundation which brokers contacts between the EU and more than 70 African, Caribbean and Pacific (ACP) former colonies, said such a move could harm economic integration between poor countries-which is a central aim of the EPAs.
"It can be seen as a divide and rule strategy. I'm not saying it is, but it can be seen that way," Bilal told the news agency in a telephone interview.
"Then what do they do when they come together to sign a regional agreement? Do they reopen the whole deal? Do they cancel the previous regional agreement ... I don't see how that is conducive to regional integration," he said.
Pressure is greatest on more developed ACP countries like Kenya, Ivory Coast and Ghana, as they will not qualify for an alternative preferential trade regime known as "Everything But Arms" which is afforded only to least developed countries.