Buhari says agriculture subsidies to EU farmers make Africa’s export uncompetitive

President Muhammadu Buhari has advocated for more balanced trade between Africa and the European Union, claiming that agricultural exports to EU farmers have made African food exports uncompetitive.

This was revealed in a statement released by the Presidency during the recent EU Africa conference.

Buhari emphasized that the way Africa and the EU interact must change, emphasizing that agriculture is the fastest method to reduce poverty on the continent.

The President stated that the connection between Africa and the EU must be balanced in order to support job development and poverty alleviation. "Unfortunately, today's arrangements do exactly the opposite," Buhari says. "While some believe that preferential trade policies with the EU aid Africa, the reality is quite different."

He went on to say that while the Everything but Arms Scheme gives 32 African countries tariff-free access to European markets, it still excludes many of Africa's 54 countries because there are still restrictions to Europe's markets for those who qualify.

Agricultural subsidies to EU farmers, he claimed, make African exports uncompetitive because European farmers have access to large credit investments.

"Agricultural subsidies to EU farmers may not be equivalent to external tariffs, but their effects are the same: they make Africa's products uncompetitive." Over 50 billion euros are invested in keeping European food prices low. African countries are robbed of foreign cash, and agricultural investment is inhibited, because their main export market is biased against them," Buhari stated.

Economic Partnership Agreements, he continues, has provided Europe greater access to African markets at the lowest end of the value chain. "These free trade agreements ensure that EU agricultural subsidies deliver yet another blow to African farmers as artificially devalued produce floods the market, weakening domestic competition," he said.

Last week, it was reported that Nigeria's agriculture industry increased by 3.58 percent (year-on-year) in the fourth quarter of 2021, up 2.36 percent points over the previous quarter's 1.22 percent growth rate.

In real terms, the sector contributed 26.84 percent to overall GDP in Q4 2021, which was lower than the contributions in the fourth quarter of 2020 and the third quarter of 2021, which were respectively 26.95 percent and 29.94 percent.