Africa and the EU

The European Union has adopted a new approach to trading relations with Africa responding to the need for change through the negotiation of Economic Partnership Agreements.

Trade in goods

In 2004 trade with the ACP countries totalled over EUR 55 billion, with the EU importing goods to the value of EUR 28.4 billion and exporting goods worth EUR 26.5 billion.

For most of the ACP countries - and for virtually all African ACP countries - the EU is the main trading partner.

The main products traded are: as regards ACP exports, petroleum (26% of total exports), followed by diamonds (11%); as regards EU exports, machinery (31%), followed by vehicles (10%), ship/boats (9%), oil (8%), medicines (4%).

Trade between the ACP and the EU has remained important for the ACP, but marginal for the EU.

Investment

EU investment flows to the ACP increased from EUR 1,922 million in 1996 to EUR 4,319 million in 2002, which represented 3,3% share of EU total outflows. Investment flows to ACP Africa rose from EUR 1,532 million in 1995 to EUR 2,799 million in 2002. The relative importance of the ACP as a destination for investment has increased. EU capital employed in the ACP increased from 2.5% of total EU outward stock in 1996 to 3.1% in 2002 of the total EU share, amounted to EUR 58,831 million.

BILATERAL TRADE AGREEMENT

The ACP countries and the EU have a long and preferential relationship.

The EU's relations with the ACP are today governed by the ACP-EU Partnership Agreement, signed in Cotonou on 23 June 2000 and concluded for a period of 20 years. Economic and trade cooperation is primarily conceived as an instrument of development cooperation. The current legal framework for trade is an instrument for development.

NEGOTIATION OF ECONOMIC PARTNERSHIP AGREEMENTS (EPAs)

These negotiations are a means of fostering the gradual integration of the ACP countries into the global economy. EPA negotiations are supported through Trade-Related Assistance providing support for the negotiation process, ACP supply and trade capacity.

Formal negotiation of EPAs at the level of all ACP countries started in September 2002. Since October 2003 regional negotiations with the six regions (West Africa, Central Africa, Eastern and Southern Africa, the Southern African Development Community, Caribbean, Pacific - EPA list of countries grouping) have been launched.

WTO / DDA (DOHA DEVELOPMENT AGENDA) ISSUES:

The EU sees its bilateral and multilateral agendas as compatible and mutually supportive.

In this context, the Economic Partnership Agreements (EPA) are not an end in themselves, but are intended to act as a stepping stone to the gradual integration of the ACP countries into the world economy.

EU External Trade with Africa, Caribbean, Pacific web links