Press Release

Basic Needs Basket

“Stop bulldozing the EPA negotiation!” Jubilee and CSTNZ tell EU.

March 2007

Jubilee-Zambia and Civil Society Trade Network of Zambia (CSTNZ) have called on Peter Mandelson, the EU’s Trade Commissioner to stick to the rules of negotiating the Economic Partnership Agreements (EPAs) as provided for under Article 37.6 of the Cotononou Agreement.

The two organizations said this in a joint statement issued in Livingstone where they were conducting Economic Literacy training from 19th to 20th March 2007 on debt, trade (EPAs and sensitive products to be protected from competition with European products) and the 2007 national budget.

According to the two organizations, the EU is obliged to provide appropriate alternatives for countries that will opt for another trade arrangement other than the basic EPA which is being negotiated and should be affected in 2008.

Contrary to the pronouncements made by Peter Mandelson (EU commissioner for trade) and Peter Thomson (EU Director for Development) reported by the post newspaper on Wednesday the 21st March 2007 that the EU is not considering plan “B”. The Cotonou Agreement which set out the framework for EPA negotiations is very clear on this and specifically Article 37.6 of the Agreement clearly states “that the EU will assess the situation of the non-LDC which after consultation with the community decide that they are in a position to enter into economic partnership agreement and will examine all the alternative possibilities, in order to provide these countries with a new framework for trade which is equivalent to their existing situation and in conformity with WTO rule”. The EU has even lagged behind in this promise because EPAs are being negotiated without taking into consideration the above article. This attitude undermines the examinations called for in Article 37.6 and it violates the said article because it weakens the prospects of considering alternative trade arrangements. Furthermore, the statement by the commissioner violates the principle of effectiveness which is a feature of both international and community law.

It is not also correct for  Mr. Mandelson to allege that  the EU has no desire and capacity to impose anything  on ACP countries, the blatant refusal to look at alternatives  to EPAs and the need to  allow  a reasonable time frame needed (which implies beyond the current deadline of December 2007) to come up with detailed  arguments  for  all components of the trade negotiations  demonstrates  the contradictions and grey areas inherent within the EU agenda.  Thus we urge the EU to stop bulldozing their weaker partners in this EPA negotiation.

It is disheartening to see the current lack of commitment characterized by a spirit of bulldozing which is sugar-quoted with terms of “partnership agreements” which are not matched with their actions.

Several countries are not yet ready to sign the EPAs especially with the current provisions which to a great deal ignore developmental concerns of many poor countries including Zambia.

And Jubilee-Zambia Livingstone has said in the same statement that government should not rush into signing the EPAs especially if they will not address the supply side problems faced by many farmers, small scale producers and manufacturers which raise the cost of doing business. We are concerned that the EPAs would also open up trade in important services like tourism. This will lead to competition that on one hand would improve the quality of services but on the other hand and to the detriment of many poor people will cause massive job losses because some companies are likely to close. The scars of liberalization in Livingstone are still vivid especially in the textile sector where most companies have closed and hundreds of people have lost employment. If the EPA is not guided to protect jobs and industries in Zambia the effects will be the same or worse than those inflicted by the Structural Adjustment Programme (SAP). In this regard, our government and its ACP partners should fight to prevent this at all costs. 

Jubilee-Zambia Livingstone has also urged government to quickly address the deteriorating infrastructure especially roads. If Zambia’s development prospects will be realised from trade not aid, we need a proper road system; unfortunately, the roads in Livingstone are in a deplorable state.

Jubilee-Zambia is deeply saddened by the recent revelations of rampant abuse of tax payers’ funds in government custody including the HIPC money.  We urge government to urgently give a public account for the abuse of these funds. This statement follows the Auditor General’s 2005 report presented to parliament on 25 January 2007.

We commend the Auditor General for exercising due diligence expected of the Auditor Generals’ office by bringing before parliament irregularities obtaining in the utilisation of public funds.

As a network that tirelessly campaigned for debt cancellation for over 8 years, we are concerned at the lack of prudence in the use of resources freed by debt relief.  We feel that the manner in which colossal sums of resources meant for poverty reduction were mismanaged is a betrayal of the Zambian people whose sacrifices resulted in the availability of these funds. We are particularly saddened by the lack of accountability for the expenditure of poverty reduction funds amounting to over K3.5 billion that was paid to 60 district welfare schemes.  

We are very worried that this trend may continue if government does not put in place strict monitoring and accountability measures on the use of debt relief money.

Thus, we urge parliament and the Ministry of Finance to inform the public of the immediate legislative and administrative measures that will be taken to protect the remaining debt relief from abuse by public officials. We call on government to ensure that there are regular public reports of the list of projects that are being funded by HIPC and other debt relief resources. As a sign of commitment, government should address these concerns by commencing appropriate legal action against the controlling officers and the officials who benefited from the criminal actions.

We are concerned about governments’ tolerance of an environment that sustains financial wastage in our state institutions.  It is unacceptable that the majority of the population of over 70% living below the poverty line should continue to be sidelined in sharing of the HIPC benefits despite their tremendous sacrifices.

We challenge government to show real commitment to the fight against corruption by placing strong controls which match its self pronounced praises of financial management, fiscal discipline and prudent economic management.  

Government must take the Auditor General’s report seriously and not consider it as any other report. We look forward to pro-active action to address the wasteful and inhuman ways in which huge resources are being lost. Given the range of injustices facing Zambia which lead to poverty including weak investment agreements that promote externalisation of resources, low revenues from mineral taxes and royalties, high Pay As You Earn (PAYE), we cannot afford to lose anymore of our resources through sheer selfishness and carelessness by public servants. Government must deliver on HIPC promises by demonstrating how these resources are funding poverty reduction program.  Government has a legal and moral obligation to promote its citizen’s interests especially the poor and marginalized

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