New ACP deals on the horizont

The European Union and countries in the Caribbean failed to agree on a new trade and investment deal in two days of talks that ended on Friday but managed to narrow the gaps between them, officials said. The EU and 79 nations in Africa, the Caribbean and Pacific (ACP) have been holding talks to replace colonial-era preferential trade deals which the World Trade Organization says are illegal and must end by December 31.

The EU says the new agreements will help the ACP countries develop their economies, which are largely dependent on commodity exports, and will foster regional economies that will help attract foreign investment. The Caribbean is largely dependent on tourism while its commodity export industries, in particular sugar, have languished. But some aid agencies, such as Oxfam, say the deals will expose farmers and businesses in developing countries to unfair competition from Europe.

The EU and countries from the Pacific region have effectively given up on reaching a firm deal before the preferential trade agreements expire in January. Instead, they have agreed to seek an interim agreement to come into effect by January 1 and bring them in line with WTO stipulations, avoiding litigation at the world trade body.