EU economic partnership agreements: social justice and equity implications

Introduction

Australia and the EU have sought to improve the international trade environment with regard to developing countries in the Asia-Pacific. To this end, the EU contributed $57 billion worth of international Overseas Development Assistance in 2003. The two have joined in development cooperation in areas of mutual interest, such as the rebuilding of East Timor and the Solomon Islands, and of good governance and economic growth in other countries like Papua New Guinea. The two have further contributed to funding for the Asia-Pacific Leadership Forum on HIV/AIDS and Development. This attempt to improve regional trade has, however, been criticised. Civil society organisations, such as farmers' unions, have called for the EU, in its development cooperation with Australia, to address the lack of transparency of economic partnership agreements (EPAs) between it and developing countries. Non-government organisations (NGOs), such as the Pacific Concerns Resource Centre (PCRC) in Fiji, have further criticised the EU for applying pressure to open up regional markets, arguing it has focused more on eliminating trade barriers than on the development of these countries.

Issues of accountability

Development cooperation between Australia and EU in the Asia-Pacific and negotiations for economic partnership agreements (EPAs) are considered critical for long-term development, economic growth, and poverty reduction in the region. Trade has facilitated these goals and reinforced regional security and stability. Concerns, however, about the process have been voiced by civil society organisations, such as farmers' unions, seeking full participation in negotiating EPAs. Such groups fear a lack of transparency, or accountability, in the way these function and demand that representatives of national, regional and civil organisations be routinely informed, consulted and allowed to express their views on the promotion of long-term development priorities. It is also argued that under the guise of a 'development partnership' the EU is enforcing policies set by the World Trade Organisation (WTO) considered to have negative implications for development.

Issues of development

NGOs, including PCRC, argue that as a result of heavy dependence on aid, developing countries in the Asia-Pacific have little choice but to give in to the EU's demand that they open up their markets to European goods and services. The EU has been criticised for this heavy economic and political pressure with the claim that it has focused more on eliminating trade barriers, and on seeking to expand Europe's access to regional markets, than on the development of these countries. The concern is over the threat this poses to regional integration efforts argued to be central to development strategies, and over unfair European competition in domestic and regional markets feared to cause unemployment, food insecurity, social inequality, and losses of public revenue with the elimination of import duties.