The Delegation of the European Union in Zambia is responsible for managing official relations between the European Union (EU) and the Common Market for Eastern and Southern Africa - COMESA. In 2018, total trade in goods between the 27 EU Member States and Africa was worth EUR 235 billion – more than 30 % of Africa's total. Yet the EU is also uniquely well-placed to offer Africa a true development partnership that is mutually beneficial for the two continents. BORRELL ON AFRICA: The EU’s High Representative for Foreign Affairs, Josep Borrell, used the backdrop of Michel’s visit to express the need for “a new, integrated strategy for and with Africa.” While the AfCFTA entered into force on 30 May 2019, the extraordinary AU Summit on the AfCFTA held in Niamey on 7 July 2019 launched the operational phase of the AfCFTA with the agreement that trading under the AfCFTA will commence on 1 July 2020 and with the decision to award the hosting of the AfCFTA Secretariat to Accra, Ghana. EU asks for formal consultations with Southern African Customs Union on trade in poultry. Africa’s main trade in goods partner is the EU, Manufactured goods dominate exports to Africa, Primary goods dominate imports with Africa, Northern Africa largest trade in goods partner, Spain, France, Germany, the Netherlands and Italy largest EU trade in goods partners for Africa, Standard international trade classification (SITC), Full access to detailed statistics on international trade in goods (Comext), International trade in goods statistics - background, User guide on European statistics on international trade in goods, https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Africa-EU_-_international_trade_in_goods_statistics&oldid=512857, Source: Eurostat (online data code: Comext data code : DS-018995). In the table, a positive trade balance means that the EU exports more than it imports from the given country. The EPAs were originally also meant to serve that end. For Africa and the European Union (EU) to achieve the much-talked about mutually beneficial trade cooperation, as well as economic integration among countries, all EU trade-related support at the national, regional, and continental levels should be reorganised into African Continental Free Trade Area (AfCFTA) support, a new report by the European Think Tank Group (ETTG) has said. Britain’s negotiations to reach a go-it-alone trade deal with Kenya by the end of the year are stoking tensions between Nairobi and its partners in a regional trade group. The EU trade agreements with North Africa could generate additional, large benefits if they either directly led to or at least incentivised behind-the-border reforms to make the North African countries more competitive in international markets. It is called a FOB value (free on board) for exports and a CIF value (cost, insurance, freight) for imports. Gulf of Guinea 3. EU’s main trade obligations So there are tariffs that affect some South African goods. Unless the AU resets relations, it’s in for decades more of the same. Tariffs are of course only part of the picture, and it could be that different regulatory regimes between the EU and African countries inhibit this trade . Trade agreement talks began actively in 2000 after Europe and 79 countries from Africa, the Caribbean and the Pacific (ACP) signed the Cotonou Agreement on trade, aid and political relations. Phase 1 focused on three protocols: trade in goods with its 9 annexes, trade in services with its 3 annexes and dispute settlement. The EU is the largest market for Africa’s trade, accounting for $116 billion (34 percent) of the region’s total exports in 2017 (figure 3). South Africa has enjoyed preferential market access to the EU under the Trade, Development and Cooperation Agreement (TDCA) since 1 January 2000. In the following years, both imports from and exports to Africa picked up, with imports growing slightly stronger. The European Union has concluded free trade agreements (FTAs) and other agreements with a trade component with many countries worldwide and is negotiating with many others.. EU data are compiled according to Community guidelines and may, therefore, differ from national data published by the Member States. Africa’s relationship with the European Union (EU) is at a critical juncture as officials from both continents seek to conclude a successor treaty to the Cotonou Agreement (a trade and aid partnership signed back in 2000 and due to expire in 2020). Because the 28 EU Member States share a single market and a single external border, they also have a single trade policy. But Europe still leads the field for in- Joint Africa-EU strategy The joint Africa-EU strategy was adopted in 2007 as the formal channel for EU relations with African countries. New trade deals basically the same as the old ones. Asia’s trade surge Africa’s growing trade with Asia, especially China, is of concern to Europe, says Mr. Hasselbach. Thanks to the ease of modern transport and communications, it is now easier to produce, buy and sell goods around the world which gives European companies of every size the potential to trade outside Europe. In 2019, the EU had trade in goods deficits Middle Africa (EUR 2.0 billion) and Western Africa (EUR 2.4 billion) as shown in Figure 7. Leaving the EU theoretically allows the UK to make independent trade agreements better tailored to individual African nations. And it can get very complicated. The FTA aims to ensure better access to the EU market for South Africa and access to the South African market for the EU. EU’s main trade obligations It was EUR 8.8 billion in 2019. This plan aims to increase investment and job creation and thus also supports the objectives of the AfCFTA. As the UK develops an independent trade policy outside of the EU, Africa appears to be moving in completely the opposite direction. Given Africa’s flirtation with socialism and protectionism from the 1960s through at least the 1980s, this is a welcome development. As a result, the bulk of Africa’s export to the EU is unroasted green coffee and German manufacturers reap the rewards. At the same time, we are seeing rapid digitalisation. For imports from Africa, primary goods are the largest group (see Figure 4). Africa Union and its Member States.The AfCFTA complements existing regional trade agreements in Africa, Official info: African Union Commission, UN Economic Commission for Africa Further info: Trade Law Centre (TRALAC). This page was last modified on 22 January 2021, at 15:32. Trade, when taking into account asymmetries, can contribute to a fairer, inclusive and socially just global trading system. Concerning trade in goods, the goal is set for 90% of products at zero duty across the continent. They correspond to the statistical value, i.e. The AfCFTA agreement has been ratified so far by 31 AU Member States, notably Algeria, Angola, Burkina Faso, Cameroon, Chad, Republic of Congo, Côte d’Ivoire, Djibouti, Egypt, eSwatini, Equatorial Guinea, Ethiopia, Gabon, Ghana, Guinea, Kenya, Mali, Mauritania, Mauritius, Namibia, Niger, Rwanda, Saharawi Republic, Sao Tome & Principe, Senegal, Sierra Leone, South Africa, The Gambia, Togo, Uganda and Zimbabwe. take place in EU-Africa trade relations before 2015, when TF agreement imple-mentation should commence. Europe is by far Africa's largest export market (35% of Africa's exports), followed by Africa itself (18%), China (11%), the USA (8%) and India (7%). In 2019, 21 EU Member States had a trade in goods surplus with Africa. This page has been accessed 38,652 times. Data are collected by the competent national authorities of the Member States and compiled according to a harmonised methodology established by EU regulations before transmission to Eurostat. in 2009 EU exports to and imports from Africa were very close and the trade balance was only EUR 2.3 billion (see Figure 2). EU officials said privately there are plans to ramp up existing funding channels to ensure the EU can back projects such as roads and rail routes, all of which are needed if the continent is to complete its recently launched African Continental Free Trade Area (AfCFTA). EU-Africa free trade agreement ‘destroys’ development policy, says Merkel advisor. As the trade element is the most contentious, it is the focus of this analysis. It has also posted the greatest increase in demand for Africa’s higher value-added manufactures: these comprised $42 billion or 37 percent of its total imports from the region in 2017, up from $11 billion or 29 percent in 1997. EU data is taken from Eurostat's COMEXT database. African countries and the EU cooperate through multiple frameworks such as: 1. the Cotonou agreement 2. the joint Africa-EU strategy In addition to these frameworks, the Council has adopted three regional strategies for the: 1. EU-Africa Trade Relations: The Political Economy of Economic Partnership Agreements Peter Draper1 ECIPE Research Fellow draperp@mweb.co.za 1 I am grateful to Roderick Abbott, Fredrik Erixon, and an anonymous reviewer for useful insights and comments received on an earlier draft. Europe is by far Africa's largest export market (35% of Africa's exports), followed by Africa … France (EUR 27 billion), Germany (EUR 24 billion), Spain (EUR 19 billion), the Netherlands and Italy (both EUR 17 billion) were the largest exporters of goods to Africa in 2019 (Table 1). These arrangements, especially those that are Free Trade Areas or Customs Unions, have their own deeper integration agendas, which they will continue to pursue. Although imports from Northern Africa (1.8 %) grew less strongly, they still made up almost half of all imports from Africa. The highest surplus, EUR 4 billion, was found in Belgium followed by Germany and France (both EUR 3 billion). African Union sets goals for free movement of goods, services and people. Through EU trainings, farmers have gained knowledge of techniques to manage bacteria levels during the production and harvesting processes. In 2019, over 65 % of goods imported to the EU from Africa were primary goods (food and drink, raw material and energy). In Ghana, a EUR 13 Million programme created safer production and harvesting processes on cereal crops, Ghana’s leading export commodity. Phase 2 negotiations will focus on the protocols on competition, intellectual property rights and investment. The partner is the country of final destination of the goods for exports and the country of origin for imports. An overview of the EU-West Africa EPA. COMEXT is the reference database for international trade in goods. Markets for products and services are also needed to increase sustainable investments and jobs- the main goals of the Africa-Europe … The openness of the EU’s trade regime has meant that the EU is the biggest player on the global trading scene and remains a good region to do business with. Kenya is part of a trade bloc called the East African Community (EAC), which includes Uganda, Rwanda, Tanzania, Burundi … For many African countries, the EU and its Member States are already major partners in aid, security, finance, and trade. Exports of goods to Middle Africa (-2.3 %) declined in this period . The five largest exporters were also the largest importers of goods from Africa in 2019 (Table 2). This article is part of an online publication providing recent statistics on international trade in goods, covering information on the EU's main partners, main products traded, specific characteristics of trade as well as background information. Africa continued to receive the largest share. The European Union and its Member States are the African Union’s main partners in this endeavour and have been supporting the AfCFTA process from the very beginning. Try the new automatic translation by clicking on the blue icon “Translate” up in the right corner of the article! Africa already has 122 million active users of mobile financial services – more than half the global total. The EU is South Africa’s main trading and investment partner. This is known as ‘special trade’. New trade deals basically the same as the old ones. Africa Trade and Investment Convention is a business conference and exhibition designed specifically: o To promote and facilitate international trade between Africa and Europe, North America and Asia. The EU trade policy is an important element of the external dimension of the ‘Europe 2020 strategy for smart, sustainable and inclusive growth’ and is one of the main pillars of the EU’s relations with the rest of the world. After that, growing imports from Africa saw the trade surplus decline. In September 2018 European Commis­sion President Jean-Claude Juncker declared that the EU was willing to enter into trade talks with Africa as a whole if the AfCFTA came into effect. The most obvious and damaging exhibit is, of course, the Common Agricultural Policy which takes up half the EU budget and lavishes subsidies onto the EU’s biggest landowners at the expense of millions of the poorest farmers in Africa. As the trade element is the most contentious, it is the focus of this analysis. European Union, Trade with South Africa Key Figures Indicator Unit Period Imports Exports Total trade Balance Last year Mio euros 2019 18,963 23,026 41,989 4,062 Rank as EU partner 2019 21 22 19 Share in EU trade % 2019 1.0 1.1 1.0 Annual growth rate % 2018 - 2019 10.1 6.0 South Africa has enjoyed preferential market access to the EU under the Trade, Development and Cooperation Agreement (TDCA) since 1 January 2000. Two years later, in 2016, the EU had a record surplus in trade in goods (EUR 33 billion). Negotiations on Phase I Protocols on competition, intellectual property rights and investments are set to commence end of 2019. Europe is by far Africa's largest export market (35% of Africa's exports), followed by Africa itself (18%), China (11%), the USA (8%) and India (7%). EU support to process has been declined into actions in support to support to negotiation fora, provision of expertise in the AfCFTA unit and technical studies on impact upon demand of AU Member States (AU Support Programme), advocacy towards signature and ratification process (UNECA), provision of online tools for negotiations, design and establishment of the African Trade Observatory, integral part of the AfCFTA architecture (ITC). Africa’s relationship with the European Union (EU) is at a critical juncture as officials from both continents seek to conclude a successor treaty to the Cotonou Agreement (a trade and aid partnership signed back in 2000 and due to expire in 2020). The EU and its Member States are the largest providers of Official Development Assistance (ODA): 58% of total ODA to Africa amounting to EUR 24.9 billion in 2018. Big econo-mies like Nigeria and South Africa are talking tough, but others are more circum - For this reason data on trade with the United Kingdom are not fully comparable with data on trade with other extra-EU-27 trade partners. The EU is the largest market for Africa’s trade, accounting for $116 billion (34 percent) of the region’s total exports in 2017 (figure 3). In 2009, 77 % of goods exported from the EU to Africa were manufactured goods (see Figure 3). EU Aid for Trade supports the goals of the AfCFTA for example in West Africa, where a EUR 92 million programme seeks to increase competitiveness and trade by tapping regional trade opportunities and creating a safe trading environment for small-scale traders, in particular women traders. EU Aid for Trade can be used as a catalyst to generate the total EUR 44 billion of private and public-sector investment unlocked by the EU External Investment Plan. The EU is South Africa’s main trading and investment partner. The highest shares of imports from Africa in total extra-EU imports were found in Portugal (18.8 %), Spain (17.8 %), France and Italy (both 11.7 %). Northern Africa: largest trade in goods partner of the EU among the African regions in 2019. The EU and its Member States remain the global Aid for Trade donor leader (32%) with an all-time high of EUR 13,5 billion in 2016. The Economic Partnership Agreements (EPAs) are trade deals between Europe and regions in Africa, the Caribbean and the Pacific, designed to end preferential treatment of former European colonies. The TDCA established a free trade area that covered 90% of bilateral trade between the EU and South Africa. Negotiations on Phase I Protocols in trade in goods and trade in services is currently ongoing with African parties (Member States or RECs). It is implemented through periodical action plans. The European Union and the African Union are looking to renew and strengthen their relationship, from aid donor and -recipient to equal trade partners. to the amount which would be invoiced in case of sale or purchase at the national border of the reporting country. The liberalisation schedules were completed by 2012. Information on commodities exported and imported is presented according to the Standard international trade classification (SITC). EU-Africa trade and investment hold huge potential for the future. The TDCA established a free trade area that covered 90% of bilateral trade between the EU and South Africa. EU-Africa Trade Relations: The Political Economy of Economic Partnership Agreements Peter Draper1 ECIPE Research Fellow draperp@mweb.co.za 1 I am grateful to Roderick Abbott, Fredrik Erixon, and an anonymous reviewer for useful insights and comments received on an earlier draft. As a consequence, while imports from any other extra-EU-27 trade partner are grouped by country of origin, the United Kingdom data reflect country of consignment. The European Union negotiates free trade deals on behalf of all of its member states, as the member states have granted the EU has an "exclusive competence" to conclude trade agreements. Through its Pan-African Programme the EU has earmarked a total of EUR 72.5 Million to support the AfCFTA in the period 2014-20.