Economic Partnership Agreement divides Malawi

Mutharika's stand contradicts a government trade officer, who indicated that Malawi might go for it only if some modalities were set straight.

Civil society organisations in Malawi have been conducting a vigorous campaign telling Malawians of the disadvantages of the EPAs and why Malawi should not be party to it.

The country is therefore yet to sign the interim agreement for the EPAs, which is described as a key element of the Contonou Agreement believed to be the latest agreement in the history of the ACP-EU Development cooperation.

Economic Partnership Agreement are a new set of trade rules aimed at creating a free trade area (FTA) between the European Union (EU) and the African, Caribbean and Pacific (ACP) countries like Malawi.

“Some critical issues were overlooked and we cannot append our signature on the agreement until some of the critical development issues have been addressed in the new set of the trade rules,” said Diamond Chikhasu, Trade Officer in the Ministry of Trade and Industry.

The EPAs were supposed to take effect on January 1, 2008 but several ACP countries including Malawi are yet to endorse them.

President Bingu wa Mutharika put his foot down saying EPAs cannot benefit Malawians therefore he will not allow the country to endorse them.

“I think this is imperialism by European Union which we must fight against because the European Development Funding has nothing to do with EPA conditions,” said Mutharika who ruled out the possibility that Malawi could lose European Development Funding (EDF) from EU if they do not endorse the EPAs.

“They are two different things,” argued Mutharika “[and yet] they are putting this in order to try to punish those who are not signing their agreements. Now if the agreements are so good why do they have to force people to sign?”

The Malawi leader said if the European Union is going to bring their credibility down and deny funds to Malawi and other countries because ‘we did not sign EPAs then it is unfortunate.'

The regional meeting for the Common Market for eastern and Southern Africa (COMESA) which is taking place in Malawi is expected to brainstorm on thorny trade-related issues such competition policy, trade-related facilitation and investment among others.