Name: Usman aminu Std Nr: 134758 PSIR 407

Name: Usman aminu

Std Nr: 134758

PSIR 407 TERM PAPER

 

Understanding
Africa and the European union economic relations

 

Abstract

 

As an international
relations student, I am constantly amazed at how my lecturers always give
examples of European Union as a successful inter-governmental organization. The
European Union’s complex structure which is also a result of the number of its
member states still does not make it impossible to carry out decisions unlike
how the pan African critics believed about such economic union of states. It is
impossible to forget the fact that African states were in the past colonies of
mostly European states, does this colonialism past still affect the EU Africa
relations?

In this research paper, I
am especially keen to understand the how strong ?s the afr?ca and european
un?on economic relations that the EU has with Africa while making reference to
the the aims and objective of the African EU parnersship agreement, Africa EU
summit also.

 

 

 

Introduction

 

 EU as a single economic entity is the second
largest world economy after China. The EU has an estimated €16.5 trillion
nominal GDP (2016) representing up to 28.8 per cent of the worlds nominal GDP
as affirmed by the IMF, RN
Haass on Foreign Affairs, 2008 and Kimberly Amadeo article on The Balance.

The European
union currency is the most used for trade currency in the whole competing with
the united states dollar, euro currency is so strong up to the point that it is
the largest reserve currency in the world . the european union in
2012 made the largest and biggest foreign investment in the world more than any
regional organization with about $5.1 trillion amount including foreign
investments in other countries and regions like Africa and asia of about 9.1
trillion, there is no other foreign investment like that in the whole world..

Unfortunately, the financial crises of 2008  rose and the European figures began to shade
and its significance started been seen as shady. In terms of trade the US is
the EU’s number one trading partner followed by 
China, Switzerland, Russia, Japan, Turkey and Norway.

crisis emerges concerning
the European union agricultural sector that was 
bolstered by appropriations from the European Union agreement  of 2013 in the outward appearance of the
(CAP). In the sphere of 2013 this represented approximately forty five billion
euros which much less than 33% of the comprehensive budget of one hudred and
forty eight billion euros which is or shuld be of the European union total
spending. This is still highly criticized since it is protectionism,
and against free trade, and most  importantly
it is  damaging developing countries
which first of all are not allowed to subsidize their agriculture due to free
market policies and since Africa has the newest and most fragile economies.

Africa is the
resource-rich continent with especially sub-Saharan states showing high
economic growth rates and the African states are seen by investors as future
economic growth engine of the world but the continent is still suffering from
the colonial and slavery impact and many other internal problems slowing its
development.

The European Union on the
other hand is the largest exporter in the world so, at a surface level, the EU
is known for its economic success while Africa is known for its economic
weaknesses so what kind of economic relations can these two have?

 Also, the European Union’s economic policy
towards outside states seem to be very exclusive as compared to inside states.
So, what kind of relations does the Eu AND African states have, what is the
nature of their relationship especially because of its colonial past?

In general, the EU does
have economic relations with non-European states. Actually, they economic have
accords with all the other parts of the world it is just that they have
inclusive economic policies which are regarding the EU states and exclusive
policies which are regarding the non-EU member states. but before we get into
economic depth lets analyze Africa EU relations in a more political spectrum by
understanding the African EU Summits.

 

 

 

 

 

 

 

Africa EU summits

 

The European Union-Africa summits are constantly evolving as the
relations between the two continents matures. These partnership aims to adapt
to the changing realities by constant formal communication between the two
sides in different levels and take record of the improvement that was
accomplished  concerning the execution of
attentiveness constructed and make available the supporting leadership meant
for supplementary labour. The  Africa European
union Summit was alleged firstly in 2000 at cairo by the
european union and african leaders.  the meeting was formerly the
opening summit on the continental intensity connecting European
union with the African influencial leaders which allowed
the leaders of both Europe and Africa to express their dedication to
come back collectively and give a
new measurement to their partnership. The second Summit was held in
Lisbon in the year 2007 this was the first summit to put Africa-EU state relations
on and equal footing. In other words, Africans and Europeans agreed to shift
from donorship to partnership leading to a Joint Strategy so that they can now
address together at a global level the challenges and opportunities of the
global system. The Africa-european passed off 
the third summit on the twenty ninth – thirtieth  November 2010 in Libya , it changed into a
comprehensive execution past institutions which brought representatives from
every civil society, younger people, even the private quarter, trade unions,
multinationa cooperations, researchers and technological know-how specialists
from every side of  africa and europe
with the main goal of imparting further impetus to the Joint Africa-eu  strategic method as a “humans-focused partnership”,
and to invite  stakeholders to also help
its implementation and prioritize the cooperation areas to reach Millennium
Development Goals. See (http://www.africa-eu-partnership.org/en/4th-africa-eu-summit) (http://www.consilium.europa.eu/en/meetings/international-summit/2014/04/02-03/#). The 4th european-Africa Summit
passed off in Brussels on 2nd and the 3rd of April 2014. It introduced
collectively extra than 60 european union and African leaders, to discuss the
future of european and African members relations and make stronger hyperlinks
between the 2 continents. within the summit assertion, leaders agreed and
highlighted the near nature of Africa and european union relations and the
shared values of trade, democracy,  well
defined and established law, human rignts which is very important and desirable
governance and the proper to development and successful progress  of the 
two continents. the european union states and African states consented
to strengthen efforts in combating global terrorism disturbing the whole world
and to fight the unfold of small palms.

These Africa EU
summits have something in commun and that is further participation and
cooperation amongst Europe and Africa. Tragically. It is clear by surveying all
this summits EU and Africa relations are not an equivalent balance relationship.
Europe is a greater amount of a counsel and aide of African expresses this is
only a direct result of the improvement in Africa and the high advancement in
Europe. The inward progression contrasts inside every landmass, the distinction
in key creation and mastery zones, the provincial impact and the level of
advancement are a portion of the highlights which I discovered which very
oversees or impacts the idea of the relations between the two mainlands,

 

Economic Partnership Agreements 

As tested by using story, Andy (2006), the EPA makes out
of plans to make a free regional exchange and trade area (FTA) between the EU
and the African continent, Caribbean and Pacific group of States (ACP). they’re
the response to the analysts that the inconclusive and segregating unique
alternate understandings provided by using the EU are incongruent with WTO
policies. In any case, as of overdue , in 2016, EPAs with three African
financial nearby companies which are the

  financial community of West
African States and Southern African development network, east  african network, have been to be signed but
faced disturbing conditions. notwithstanding the reality that this eases the
situation of the LDCs below the modern trade scheme, it is surprisingly
criticized due to the reality the EBA initiative stops LDCs from setting out
their markets for EU merchandise inside the context of an EPA. the opposite
weak spot of the EBA scheme is that it uses the guidelines of beginning
vicinity of the GSP which require double diploma transformation for textiles
and clothing. at the same time as the EPAs on one hand allows unmarried degree
transformation for the exports of these sectors. virtually, this performed a
big characteristic on Mozambique and Lesotho initialing the SADC EU interim EPA
in November 2007, additionally they further signed this settlement in July
2009. Angola (the other LDC inside the SADC EPA configuration) absolutely chose
to stay trading under EBA phrases since their essential exports to the eu Union
are oil and diamonds which enjoy responsibility and z are awaiting the effect
of the EPAs. considering ACP states already cherished responsibility and tariff
loose get entry to of approximately €1.4 billion below Cotonou agreement there
has been no longer a bargain new deals that might be presented. With these, the
ODI expected the subsequent effect:

“The
exchange of the import impose exacted by the European unionU (€12.7 million out
of 2006) to parts of the ACP send out inventory network, making exports more
gainful and profitable, Accrued income exchange could incite, ACP members to
build levels of exchange between each other and increment their supply of
competitive items without significant new venture, removing duty boundaries may
make it financially possible to trade extra items and additional products to
the EU that are as of now exported to other market”. The most noteworthy,
however not really in all probability impact, is that there could be increments
in outside trade income and beneficial outcomes for whatever is left of the
economy”

 

The European development cooperation

 Improvement, progress and success  between the European Union and states
referred to as ACP group of states celebrated their fifty anniversary by the
year of 2007. Bilateral relations with other states in boosting local
economics, eradication of poverty and intensification of governance  are the greater dominant and nonetheless a
first-rate characteristic of modern-day development cooperation. 1957 Treaty of
Rome earned most of it credibility and reputability on setting up a  collective European improvement coverage and
increase the popularity of the European development cooperation to thirty one
foreign countries excluding the EU countries 
and also helped to create the 1957 European development Fund  which 
is a financial establishment and cooperation that  controls the EU budget with the aim to give
technical and monetary help to states below European union rule at the time.
more crucial, because of this treaty, 6 member states of the EU economic
organization have been expressing harmony with the new states and foreign less
powerful countries that are not financially stable and committed themselves to
facilitate and assist these countries financially until they are more
successful..

surprisingly, the EDF budget do not come from the ECU budget but
through  the European Member States on
the basis of monetary bills related to unique contribution shares, or “keys”,
that are subject to negotiation and this indicates the distinction inside the
hobbies of the member states. By making better apprehend the African _ Europe
financial cooperation lets apprehend key conventions, treaties and agreements
all embracing the Lome agreements and convention  that involve the Cotonou agreement, that is
the brand new of the PTAs among the EU and the ACP institution. The Yaoundé II
settlement expired in 1974 and changed into succeeded by a brand new
convention, which due to the advantageous and beneficial exchange agreement the
parties determined to alternate as a substitute then continuing or updating the
antique one specifically as it had unsatisfactory effects of the previous
arrangement as well as changes inside the European political framework. growing
international locations claimed that, they wanted new negotiations due to the
sturdy Neo-colonial components which changed into nevertheless identifiable in
the Yaoundé agreement and due to the fact the monetary results have been
disappointing even as, the Europeans argued that the Lomé conference turned
into an try to rectify the inefficiencies created in Yaoundé and to deal with
the one of a kind regions of grievance pointed out by the experts.So now let’s
understand the famous Cotonou agreement which many claims to be the best
Africa-Europe economic accord.

 

 

The
Cotonou Agreement

The ancient connections which were previously the most dominant features
of earlier agreements were eroded and the ACP worldwide locations’ bottom line
to the EU turned into dwindled. The 1992 distinguished market arrangements
additionally due to the ending of the bloodless struggles and the cold war, the
EU have become towards development troubles which were a piece “closer to
home”, particularly in primary and Eastern Europe however this did no
longer forestall European union and ACP affiliation but, marked through the
converting political state of affairs of its time. The wave of democratization
which reached many growing worldwide locations after the prevention of the cold
war led to a previously unknown politicization of improvement cooperation.
moreover, the persevering with absence of the financial rewards anticipated
from Lomé, its continuing incompatibility with present day agreement on tariffs
and trade who’s main function is the development of trade and tariff reduction
world wide, the world trade organization distributions  and the complexity the Lomé Conventions had
assumed had been motives in the again of the drawing of the brand new Cotonou
agreement. It turned into signed agreement  by
the european union and also the ACP on the june of 2000 by seventy eight ACP
nations and also the European union-15. it is designed to ultimate for a period
of two decades and is based totally on 4 fundamental principles which are the
partnership among the, participation, dialogue and mutual responsibilities that
every state suppose to carry with it, differentiation and regionalization also.
building at the experience of almost forty years of improvement cooperation,
the Cotonou settlement delivered some critical improvements. a very vast
alternate became the foundation of a governmental and diplomatic features to
European union-African, caribbean and pacific group improvement cooperation.
but, this became one of the most criticized components of the Cotonou agreement
as it is related to development of cooperation to conditionally. admirance  for human rights is one important aspect,  the rule of law  also and democracy  became three essential and indispensable
favtors that if these factors are violated in some ways , it can result in a
serious partial or general suspension of improvement aid. although
Conditionality is one of the troubles that have been taken into consideration
to be undermining the precept of same partnership on which Lomé changed into
primarily based. Other Conteu legacy changed into the appreciation and
identification of the civil society and the infrastructures own and control by
individuals in fostering improvement. therefore, provisions were made to ensure
the involvement of  EU and non-states
actors in ACP international society within the coverage process in their
specific country. also, the Cotonou emphasized nearby integration  and unification in the ACP institution and
specially this become mainly observed in Africa but the most Conteau radical
exchange changed into the status quo of the monetary Partnership Agreements
that took impact in 2008.

. In other words, one of the Conteau’s agreement main feature is the
extension to the civil society and private corporations in sustainable economic development. these are referred to as New actors because they are non-state actors as revised by Kingah,
Stephen (2006).

 

 

 

 

 

In my opinion,

All of the above
agreements, treaties and negotiations gives us clear understanding that
firstly, Europeans and Africans in every summit and in every partnership
agreement, they always tried to increase cooperation and better trade terms
amongst the parties and that their relations have been building in the process.
Secondly, the colonial history of the two continents is still evident on their
current relations such as the produced, imported and types of exported goods. Thirdly,
since the first trade relations the two sides had was primarily during colonial
eras, Europeans always played the superior role in relations with African states
but this European helper and guardian role in relations with Africa is
decreasing and decreasing with the course of time. Finally, it is definitely
clear by now that both sides have always been struggling and fighting for more
fair partnership agreements.

 

 

 

 

 

 

 

 

 

Conclusion

 

The beginning of
Europe-Africa trade relations was not marked with friendly terms and that
terrible past relations is still noticeable in today’s AU-EU economic
relations. Africa does have good trade deals and economic agreements with the
European Union. The EU mostly serves a donor figure to African states by
providing funds and guidance on sustainable developments and to uphold some
beliefs and ideologies commons to both sides like Democracy and combating
terrorism. Africa-EU economic relations seems to get more and more favorable
with the developments of new agreements. Although many scholars question EU-AU
relations saying that the terms are unfavorable to the developing nations, many
authors have agreed that the equality matter is no longer significant critics
since the both sides strive for equal terms in the trade and economic arena.
This shows us that AU-EU relations are getting better and better and soon the
impact of the colonial past will no longer be evident especially with the
development and industrialization of the developing nations.

 

 

 

 

 

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