Africa’s Dilemma Over New European Trade Relations

NAIROBI, Kenya -- The collapse of the World Trade Organization talks in the past month has presented Africa with a double predicament.

On the one hand are the lost trade opportunities following the collapse of the WTO's Doha Round. If the talks had succeeded in favor of Africa's position, the continent would have gained better market access to the European, U.S. and Japanese economies. The continent also sought to successfully negotiate for the elimination of agriculture production and export subsidies that make produce from developed countries cheaper than Africa's in the world market.

On the other hand, the preferential trade agreement between the European Union (EU) and 77 African, Caribbean and Pacific (ACP) countries, which allows the latter duty-free access to the EU market, ends in 2007.

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