Dangers of liberalisation under EPAs
25-09-2006
The European Union (EU) is negotioating with African, Caribbean and Pacific (ACP) countries for a new free trade agreement: the Economic Partnership Agreements (EPAs). The liberalisation of services and therefore opening the market for foreign investors is part of these negotiations. Also, the EU strongly advocates that attracting more foreign investment is a solution to African development problems and that African countries therefore need to include strict investment liberalisation measures in EPAs.
However, Africa has so far experienced little benefit from foreign
investment and investment incentives. Experience also shows that the
liberalisation of services can have a negative impact on poverty
eradication.
In two briefing papers SOMO researcher Myriam Vander Stichele describes
the dangers of liberalisation under EPAs and the European lobby for
investment.
