Bullied Africa in Mandelson poverty threat

European nations, including Britain, are bullying African countries into signing free trade deals which will push millions of people into poverty, the charity ActionAid International warns today.

African states fear the European Union will withdraw aid and deny access to its markets if they reject economic partnership agreements, piloted by the UK’s new EU commissioner, trade chief Peter Mandelson.

The warning comes in the charity’s report, Trade Traps, that shows 750 million of the world’s poorest people are at risk under EU plans which will force open African markets to cheaper subsidised European products.

Three million Kenyans depend on the sugar trade for their income and two million Ghanaians rely on the tomato industry for their earnings.

Severe cuts in public services, like health and education, could follow as Kenya would lose about £100 million in sugar taxes and Ghana millions of pounds in tomato revenues, with Africa’s takings down by a quarter.

The proposals have received further criticism from a member of Tony Blair’s commission for Africa, Mr K Y Amoako, executive secretary of the UN Economic Commission for Africa.

And Kofi Annan, the Ghanaian secretary-general of the UN, fears EPAs will further hit African hopes of achieving the anti-poverty Millennium Development Goals.

ActionAid urges the British government to use its power next year – holding the EU presidency and chairing the G8 summit of rich nations – to lead moves which would replace the agreements with fair trade deals.

Cosmas Ochieng, the Kenyan co-author of the report, said: “Mr Blair and Mr Mandelson have vowed to fight African poverty. They should drop these damaging plans in favour of alternatives to help not harm the poor.”