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Home / Knowledge / News / Textiles / Economic agreement with EU to be a major pitfall

Economic agreement with EU to be a major pitfall

25
Mar '08

Cameroon signed an economic partnership agreement with the European Union on December 17, 2007 and experts have regarded it as one of the major follies on part of the Government.

The agreement that will span over a period of 15 years, encloses a tariff-free trade between Cameroon and the European Union.

A large number of civil society organizations protested against this agreement on grounds that Cameroon was too feeble to compete with the European Union markets.

According to experts, Cameroon is likely to loose CFA1,036 billion of customs revenue in the given period of 15 years.

Member countries of the Central African Monetary Community, (CEMAC) were determined to talk terms with the EU, however, Cameroon chose to single-handedly enter into the agreement.

This step is regarded an unforgettable economic blunder made by the Biya Government. Experts fear that while EU will flood the Cameroonian market with its goods, the latter will fail to do the same.

The country exports petroleum oils, oils, cotton and a number of other agricultural products. However, holding agriculture as its main sector, the country may not be able to meet the requirements of mass production which is crucial for withstanding international competition.

Already its agricultural production is weakening and to add to this, farmers still face problem like inadequate farm to market roads. Additionally, Cameroon exporters may also have to abide by a range of EU regulations that would ensure to keep them out of business.

More Textiles News - Cameroon...