Prior to his trip to seven African countries, German development Minister Gerd Müller is advertising for a “tariff-free trade with Africa” and reaps malice. The real problems would not be addressed, experts say.
Duty-free is no longer the decisive issue, because the was established for African Goods in Europe for years, says the renowned development economist Robert Kappel in the DW-Interview. Rather, agricultural subsidies and trade barriers would need to be addressed. The Professor at the University of Leipzig accuses Europe of a “neo-colonialism” in the monetary policy. This theme of spare Minister, Gerd Müller, but also, and just shortly before his trip to Africa. He is unaware apparently that the unequal increases in weight in the trade in the last few years, despite the customs the freedom of. Kappels judgment: “The Minister is simply ill-informed and is criticized for it.” As of Thursday, Miller is in for a week on the road in Africa.
Africa’s negative trade balance
The trade relations between Europe and Africa are developing to the disadvantage of Africa. While in most African countries, the imports from Europe and especially from Germany, to go slightly, go back to the African exports to Europe, in most countries in total.
The sun, especially at the price developments, says Robert Kappel. From Africa’s oil and natural gas come mainly to Germany and Europe, followed by agricultural products. “The prices for agricultural products and also for Oil and Gas are gone in the last few years. Therefore, the trade balance of African countries with Europe negative.”
According to the business development Agency, Germany Trade & Invest, the German fraud in foreign trade with sub-Saharan Africa in the past year to 26.1 billion euros. Especially, the imports have risen, therefore, in comparison to the previous year. Nevertheless, sub-Saharan Africa in 2017 to 1.1 per cent, only a vanishingly small proportion of the total foreign trade, as in the previous year.
New free trade agreements with Africa
Is it the intention of the European Union and also the Federal government, will in future be even more European Goods on African markets. Because in the meantime also the Europeans in Africa have been identified as a major sales market. By 2050 a quarter of the world’s population will live in Africa, expects the European statistics authority Eurostat. Africa is the “sleeping giant of the world economy,” in Berlin and Brussels. And in this market you don’t want to leave without a fight to the Chinese and Indians. Asia’s trade with Africa has gained in importance and volume.
For some time the EU is negotiating with African countries in view of new trade agreements, called Economic Partnership Agreements (EPAs). You will see an almost complete opening up of the market for European Goods on African markets. Advocates hope to gain new markets for both sides, an increase in efficiency through competition, and low prices for the consumers.
But, in Africa, this makes for resentment. Critics fear that unrestricted trade with Europe will weaken their economy even more. Your fear: The most superior European products could displace African goods in the home. This would exacerbate the imbalance in the trade between Europe and Africa, the concern.
Often already a reality: Imported tomato paste replaced local tomatoes. Here, Kenyans protest against the EPAs.
Food imports predominate – thanks to agricultural subsidies
The unequal balance of trade was directly linked to the massive export subsidies for European goods, says expert Robert Kappel. However, for the EU and for the Federal government of the subsidy removal is currently not an issue. Here, the Central criticism was economists point of most of the Development, Kappel: “It must be spoken, everything else is dishonourable and untrustworthy.”
Agricultural subsidies are not only in Europe, common practice. According to the OECD, North America, Europe, Japan and China subsidize their farms every day, with over a billion dollars. The highest state subsidies conceded but farmers and agricultural companies in Europe, revolts Kappel: “Their Surplus land cheaply on African markets and compete African producers broken.” Meanwhile, the majority of African countries have become Food importers: 80% of food consumption in Africa came into being, in the meantime, through food imports. This should not be tolerated. However, Minister Müller will pretend that it does not give this Problem. “He has suggested that African governments could subsidize their farmers, but the subsidies of the European Union, there is no Africa can arrive in country,” says Kappel.
Hidden Barriers To Trade
Another major obstacle for the access of African exporters to the European market experts in the health, safety and technical Standards set at EU level and also by each African Exporter must be respected.
The CDU MEP Elmar Brok, evaluates this as a “non-tariff barriers to trade”, i.e. as a hidden protectionist measures, which are not achieved by taxes and subsidies. Shortly before the trip to Africa of the German development Minister Brok in the ARD television said: “We have actually to high health standards and consumer protection standards. But we are not, of course, ready to lower the health standards.”
Minister Müller (here in 2017, in an Ethiopian textile factory) wants to promote the trade. But the hurdles are high
He think it is crucial that you’ll help the Africans, to meet the corresponding conditions, said Brok. Similar development economist Kappel: “It should be founded in German-African chambers of Commerce, which deal with the marketing of African products on the European market, so that African companies have the opportunity to come to the European markets. Not only with raw materials and agricultural products but also industrial goods.” Until then, however, it still has a long way to go, because no proposals were heard by the development Minister to date.
Africans want independent monetary policy
Another taboo topic is the Lack of independent African monetary policies focused on the needs of African economies according to Robert Kappel. Artificial African currencies are pegged to the US Dollar or the Euro, over-valued African export more expensive products on the world market and prevented foreign investment in Africa.
Thus, the CFA-Franc-zone in West and Central Africa – a Remnant from the French colonial time, the attempt to obtain a kind of currency colonialism: “By the overvalued currency, the CFA Franc, we hinder the process of industrialization in the African countries. The company can be on the world market, never competitive.”
African economies are to be encouraged – and the escape to Europe prevented
Mantra: causes of Flight combat
The week-long trip of the Minister for Development, leads him in seven African countries: Eritrea, Ethiopia, Mozambique, Botswana, Zimbabwe, and Chad, Ghana is the last on the trip plan. In an interview with the Chancellor of Germany and Ghana’s President Nana Akufo-Addo, it will be the partnership for reform in both countries, and new investment opportunities. New jobs for young Ghanaians for the future is to offer perspectives and the causes of Flight combat.
The trip of the German Federal Minister for development, the decisive impetus for improving trade relations with Africa? Robert Kappel is skeptical. Too many topics were hushed up. The development economist to: “Rhetorically, it comes across strongly when one speaks of fair trade conditions.”