President Levy Mwanawasa has urged European Union (EU) countries to remove agricultural subsidies offered to their farmers to enable agricultural produce from Africa penetrate the European market.
President Mwanawawasa, who spoke on Trade and Development at the on-going EU-African Summit in Lisbon, said that Africa was losing a lot of money because of restricted agricultural exports imposed by Europe.
Dr. Mwanawasa who is also SADC Chairman revealed that Zambia was losing at least US$150 million per year on meat exports as a result of trade restrictions from European countries.
“My country could earn at least US$150 million per year on beef exports if the rules were to be relaxed.
“This amount is close to what the EU gives us in aid per year,” President Mwanawasa told the gathering of African and European leaders at the Lisbon Summit in Portugal.
The president said it was obvious that Africa was being denied the opportunity to earn itself a living through agricultural exports to Europe.
He said this was especially so because Africa’s competitiveness would continue to rely on agriculture for a long time.
Dr. Mwanawasa said due to the limited domestic market, the continent depended on outside market for much of its agricultural produce.
But for Africa to exploit the outside market, there was need for the elimination of agricultural subsidies for farmers in the industrialized world.
The president expressed disappointment that there had been no action taken so far to level the playing field in this area.
He said Africa was also disappointed about the hygienic conditions imposed by European countries on its agricultural exports when it was the same agricultural goods consumed by European tourists and officials in African.
Dr. Mwanawasa said in Zambia, many European officials carry the Zambian beef to consume in their countries when officially the same beef was facing export restrictions in their countries.
The president said there was need for Africa to increase its trade capacity but this required investment from EU countries in Africa.
He said EU investment in Africa was cardinal because investors from these countries have better technology, capital and market connections for African produce.
He said through exporting goods and services from Africa, the purchasing powers in African countries would gradually increase through payments for local inputs.
“In turn, this will boost local businesses through the expanding domestic markers,” President Mwanawasa said.
Dr. Mwanawasa urged African countries to eliminate the fears of the European investors, most of which was based on ignorance about conditions in individual African countries.
He said there was no need for such misconceptions given the long historical relationships between Africa and Europe.