Quotulatiousness

May 17, 2019

The EU’s trade distortions harm African farmers in many ways

Filed under: Africa, Economics, Europe — Tags: , , , — Nicholas @ 05:00

One of the unifying themes of the European Union is its dedication to farm subsidies, which are very popular among some European farmers. EU farming subsidies and trade policies also do significant measurable harm to African farmers:

spiked: How does the EU harm African economies?

Sam Akaki: Thanks to the EU’s Common Agricultural Policy, which heavily subsidises EU farmers, Africa’s markets are flooded with their cheap excess produce. If you go to any African market, you can buy all kinds of European produce sold at very, very cheap prices. This is driving African farmers out of the market. At the same time, the EU imposes strict limitations on what African countries can export to the European market. In particular, African farmers cannot export value-added goods. So if a farmer in Ghana is producing cocoa, or a farmer in Kenya is producing coffee, they can perhaps get less than a dollar for their product as they have to export it raw. Only a fraction of the money you pay for a jar of coffee goes to an African farmer. The value-added goods, such as processed coffee, are then produced in Europe. Germany, especially, has been doing a lot of harm.

EU lobby groups and NGOs are not working in the interests of Africa and are opposed to African attempts to get themselves out of poverty. For instance, many African farmers work with genetically modified (GM) crops. One of the big issues about GM food is that Western companies sell GM seeds that don’t produce new seeds for the next season. Farmers have to go back to companies like Monsanto every year. In Uganda, at the Kawanda Agricultural Research Institute, scientists have been working on their own way of producing local GM seeds that will be reusable each year. Europe is against this and tries to stop it.

[…]

spiked: How have EU sanctions affected Africa?

Akaki: The clearest examples are Zimbabwe and Eritrea. Of course, these countries have human-rights issues. But human rights are a question of development. Countries go through developmental stages. There would have been enormous human-rights abuses in Europe 100 years ago. The UK and the EU use their influence selectively to impose economic and diplomatic sanctions on African countries. We should follow a consistent policy. We impose sanctions on African countries but we are happy to trade with other human-rights abusers like Saudi Arabia. One danger is that these sanctions are driving African countries closer and closer into the arms of the Chinese. This is a real own goal.

Sanctions are a blunt instrument. The leaders responsible for human-rights abuses are protected. They still have access to the best lifestyles money can buy. Their money is stashed away in British and other foreign banks. Sanctions don’t touch them at all. Instead, they hit the poorest hardest. Sanctions are directly contributing to poverty and mass migration. We should promote human rights, certainly, but we shouldn’t use human rights to punish the very poorest.

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