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Africa-Europe Alliance: First projects kicked off just three months after launch

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Only three months after the launch of the Africa–Europe Alliance, the European Commission is presenting first progress on boosting investment and creating jobs in Africa.

At the High-Level Forum Africa-Europe today in Vienna, hosted jointly by the Austrian Presidency of the EU, notably by Austrian Chancellor Sebastian Kurz, and Paul Kagame, President of Rwanda and the Chairman of the African Union for 2018, President Jean-Claude Juncker reiterated Europe’s ambition for a true and fair partnership among equals between Africa and Europe. President Juncker presented the first results of the Africa–Europe Alliance for Sustainable Investment and Jobs, just three months after its launch. The Alliance aims to deepen the economic and trade relations between the two continents, in order to create sustainable jobs and growth.

European Commission President Jean-Claude Juncker said: “Europe and Africa share a long history and a bright future. This is why I proposed a new Africa-Europe Alliance for Sustainable Investment and Jobs, to help attract both European and African investment and create 10 million jobs in Africa over the next five years. Translating words into action, we have already taken a series of measures to bring our ambitions to life.”

The President is accompanied to the High-Level Forum by Vice-President Andrus Ansip, Commissioner for European Neighbourhood Policy and Enlargement Negotiations Johannes Hahn, Commissioner for International Cooperation and Development Neven Mimica, Commissioner for Agriculture and Rural Development Phil Hogan and Commissioner for Digital Economy and Society Mariya Gabriel.

The Africa-Europe Alliance, announced by President Juncker in his 2018 State of the Union Address, focuses on four key areas. Three months on, work is already well underway in each:

  1. Strategic Investment and Job Creation

The EU External Investment Plan aims to raise significant sustainable investments in Africa and European neighbourhood countries by 2020. From the €44 billion announced, programmes already in the pipeline will mobilise €37.1 billion of investments.

New projects were announced today:

An EU guarantee (NASIRA Risk-Sharing Facility), the first of its kind under the EU External Investment Plan, will use worth €75 million of EU funds to leverage up to €750 million of investments for entrepreneurs in Sub-Saharan Africa and the EU’s southern neighbourhood. Alone this is expected to create 800,000 jobs and benefit those who usually struggle to access affordable loans, such as small and medium sized enterprises, internally displaced people, refugees, returnees, women and young people.

A new Agri-Business Capital fund worth €45 million will support smallholder agriculture by increasing access to finance for individual smallholder farmers. It is expected to attract more than €200 million in investments and benefit as many as 700,000 households in rural areas.

To support the EU’s southern neighbourhood, a programme worth €61.1 million will supportsolar power plants in Morocco and €46.8 million will be invested in depolluting the Kitchener Drain in the Nile Delta region in Egypt.

  1. Investment in Education and Matching Skills and Jobs

Since 2015, the Erasmus+ programme supported 16,000 exchanges of African students and staff from African Universities to come to Europe on short-term exchanges. With new Erasmus+ calls ongoing, the EU is well on track to deliver on its announced 2020 target of reaching 35,000 exchanges.

  1. Business Environment and Investment Climate

In 2018 alone, the European Union has committed over €540 million to support business and investment climate reforms– significantly exceeding the Africa-Europe Alliance’s commitment to increase European Union support up to €300-350 million per year for 2018-2020.

Public-private dialogues to promote Sustainable Business for Africa (SB4A) have been established in the following African countries: Cote d’Ivoire, Ethiopia, Morocco, Nigeria, South Africa, Tanzania, Tunisia and Uganda. Similar dialogues in 25 additional African countries are currently being prepared. This will help to boost decent job creation, in particular for young people and women. The dialogues were launched in Abidjan during the EU-Africa business forum in November 2017.

  1. Economic Integration and Trade

The European Union is committed to support the creation of a African Continental Free Trade Area, and has notably announced €50 million of support. A first step was taken today with a €3 million programme signed with the United Nations Economic Commission for Africa to develop national implementation strategies for the continental free trade area. The establishment of an African trade observatory is also planned, and will be a key pillar of the African Continental Free Trade Area.

Working Together in Strategic Areas

A key component of the Africa-Europe Alliance is close collaboration between both sides. Four joint task forces have been set up:

The rural Africa task force today presented its recommendations on how best to develop Africa’s agriculture, food sector and rural economy.

The digital economy task force met for the first time on 18 December in Vienna, on the occasion of the High-Level Africa-Europe forum. Its aim is to develop by June 2019 proposals for concrete actions and projects that support the integration of digital markets in Africa, boosting public and private investment, improving the business environment and investment climate as well as the development of digital skills.

The energy task force was launched at the Africa Investment Forum in Johannesburg in November 2018. It brings together key players in the sustainable energy sector from the public and private sectors of both Europe and Africa.

A task force for transport is currently being set up.

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70% of the EU adult population fully vaccinated

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Today, the EU has reached a crucial milestone with 70% of the adult population now fully vaccinated. In total, over 256 million adults in the EU have now received a full vaccine course. Seven weeks ago already, the Commission’s delivery target was met, ahead of time: to provide Member States, by the end of July, with enough vaccine doses to fully vaccinate 70% of the adult EU population.

The President of the European Commission, Ursula von der Leyen, said:  “The full vaccination of 70% of adults in the EU already in August is a great achievement. The EU’s strategy of moving forward together is paying off and putting Europe at the vanguard of the global fight against COVID-19.  But the pandemic is not over. We need more. I call on everyone who can to get vaccinated. And we need to help the rest of the world vaccinate, too. Europe will continue to support its partners in this effort, in particular the low and middle income countries.”

Stella Kyriakides, Commissioner for Health and Food Safety, said:  “I am very pleased that as of today we have reached our goal to vaccinate 70% of EU adults before the end of the summer. This is a collective achievement of the EU and its Member States that shows what is possible when we work together with solidarity and in coordination. Our efforts to further increase vaccinations across the EU will continue unabated. We will continue to support in particular those Member States that are continuing to face challenges. We need to close the immunity gap and the door for new variants and to do so, vaccinations must win the race over variants.”

Global cooperation and solidarity

The rapid, full vaccination of all targeted populations – in Europe and globally – is key to controlling the impact of the pandemic. The EU has been leading the multilateral response. The EU has exported about half of the vaccines produced in Europe to other countries in the world, as much as it has delivered for its citizens.  Team Europe has contributed close to €3 billion for the COVAX Facility to help secure at least 1.8 billion doses for 92 low and lower middle-income countries. Currently, over 200 million doses have been delivered by COVAX to 138 countries.

In addition, Team Europe aims to share at least 200 million more doses of vaccines secured under the EU’s advance purchase agreements to low and middle-income countries until the end of 2021, in particular through COVAX, as part of the EU sharing efforts

Preparing for new variants

Given the threat of new variants, it is important to continue ensuring the availability of sufficient vaccines, including adapted vaccines, also in the coming years. That is why the Commission signed a new contract with BioNTech-Pfizer on 20 May, which foresees the delivery of 1.8 billion doses of vaccines between the end of the year and 2023. For the same purpose, the Commission has also exercised the option of 150 million doses of the second Moderna contract. Member States have the possibility to resell or donate doses to countries in need outside the EU or through the COVAX Facility, contributing to a global and fair access to vaccines across the world. Other contracts may follow. This is the EU’s common insurance policy against any future waves of COVID-19.

Background

A safe and effective vaccine is our best chance to beat coronavirus and return to our normal lives. The European Commission has been working tirelessly to secure doses of potential vaccines that can be shared with all.

The European Commission has secured up to 4.6 billion doses of COVID-19 vaccines so far and negotiations are underway for additional doses. The Commission is also working with industry to step up vaccine manufacturing capacity.

At the same time, the Commission has started work to tackle new variants, aiming to rapidly develop and produce effective vaccines against these variants on a large scale. The HERA Incubator helps in responding to this threat.

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EU’s defence measures against unfair trade practices remained effective in 2020

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The system for protecting EU businesses from dumped and subsidised imports continued to function well in 2020 thanks to the EU’s robust and innovative ways of using trade defence instruments (TDI), despite the practical challenges presented by the COVID-19 pandemic. This is part of the European Commission’s new trade strategy, whereby the EU takes a more assertive stance in defending its interests against unfair trade practices.

Executive Vice-President and Commissioner for Trade Valdis Dombrovskis said: “The EU needs effective tools to defend ourselves when we face unfair trade practices. This is a key pillar of our new strategy for an open, sustainable and assertive trade policy. We have continued to use our trade defence instruments effectively during the COVID-19 pandemic, improved their monitoring and enforcement, and tackled new ways of giving subsidies by third countries.  We will not tolerate the misuse of trade defence instruments by our trading partners and we will continue to support our exporters caught up in such cases. It is crucial that our companies and their workers can continue to rely on robust trade defence instruments that protect them against unfair trade practices.”

At the end of 2020, the EU had 150 trade defence measures in force, in line with previous years’ activity levels with an increase in the number of cases lodged towards the end of 2020. In addition, for the first time, the Commission addressed a new type of subsidy given by third countries in the form of cross-border financial support that was a serious challenge for EU companies.

The following are the main trade-defence highlights of 2020:

Continued high level of EU trade defence activity

Due to the COVID-19 pandemic, the Commission had to swiftly introduce temporary changes to its work practices, especially concerning on-the-spot verification visits. This allowed the Commission to continue applying the instruments at the highest standards without a drop in the levels of activity. At the end of 2020, the 150 trade defence measures that the EU had in place – 10 more than at the end of 2019 – included 128 anti-dumping, 19 anti-subsidy and 3 safeguard measures.

In 2020, the Commission launched:

  • 15 investigations, compared to 16 in 2019, and imposed 17 provisional and definitive measures, compared to 15 in 2019;
  • 28 reviews, compared to 23 the previous year.

The highest number of EU trade defence measures concerns imports from:

  • China (99 measures);
  • Russia (9 measures);
  • India (7 measures);
  • The United States (6 measures).

Tackling new types of subsidies

In 2020, the Commission strengthened its action against subsidies granted by third countries. In particular, the Commission imposed countervailing duties on cross-border financial support given by China to Chinese-owned companies manufacturing glass fibre fabrics and continuous filament glass fibre products based in Egypt for export to the EU.

This means that, for the first time, the Commission addressed cross-border subsidies given by a country to enterprises located in another country for exports to the EU.

Support to, and defence of, EU exporters facing trade defence investigations in export markets

The importance of monitoring trade defence action taken by third countries was again evident in 2020. The number of trade defence measures in force by third countries affecting EU exporters reached its highest level since the Commission started this monitoring activity, with 178 measures in place. In addition, the number of cases initiated also increased in 2020, with 43 compared to 37 the previous year.

The report outlines the Commission’s activities to ensure that WTO rules are correctly applied and procedural errors and legal inconsistencies are addressed in order to avoid any misuse of trade defence instruments by third countries. The Commission’s interventions yielded success in some cases where measures were not ultimately imposed, affecting important EU export products such as ceramic tiles and fertilisers.  

Strong focus on monitoring and enforcement

There was a renewed focus on the monitoring of measures in place in 2020, including changes to surveillance practices to ensure the ongoing effectiveness of the trade defence instruments. This also involved customs authorities, EU industry, and in certain instances, the European Anti-Fraud Office (OLAF). Continuing its efforts to address instances where exporters tried to avoid measures, the Commission initiated three anti-circumvention investigations in 2020 and completed five such investigations during the year, where measures were extended in four cases to also address imports from third countries where transhipment was found to have taken place.

The report also recalls the findings of the European Court of Auditors from July 2020, which confirmed the successful enforcement of the EU’s trade defence instruments by the Commission. The report made a number of recommendations to further strengthen the Commission’s response to the challenges posed by unfairly traded imports that the Commission has started to implement in 2020, such as improving monitoring to ensure the effectiveness of measures. 

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Fishing opportunities in the Baltic Sea for 2022: improving long-term sustainability of stocks

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The Commission today adopted its proposal for fishing opportunities for 2022 for the Baltic Sea. Based on this proposal, EU countries will determine how much fish can be caught in the sea basin, for what concerns the most important commercial species.

The Commission proposes to increase fishing opportunities for herring in the Gulf of Riga, whilst maintaining the current levels for sprat, plaice and by-catches of eastern cod. The Commission proposes to decrease fishing opportunities for the remaining stocks covered by the proposal, in order to improve the sustainability of those stocks and to help other stocks such as cod and herring recovering.

Virginijus Sinkevičius, Commissioner for Environment, Oceans and Fisheries, said: “The poor environmental status of the Baltic Sea is heavily affecting our local fishermen and women, who rely on healthy fish stocks for their livelihoods. This is why the Commission is doing its utmost to restore those stocks, and today’s proposal is a reflection of that ambition. However, the state of the Baltic Sea is not only related to fishing, so everyone must do their part to build the long-term sustainability of this precious sea basin.”

Over the past decade, EU’s fishermen and women, industry and public authorities have made major efforts to rebuild fish stocks in the Baltic Sea. Where complete scientific advice was available, fishing opportunities had already been set in line with the principle of maximum sustainable yield (MSY) for seven out of eight stocks, covering 95% of fish landings in volume. However, in 2019 scientists discovered that the situation was worse than previously estimated. Decisive action is still necessary to restore all stocks and ensure that they grow to or remain at sustainable levels.

The proposed total allowable catches (TACs) are based on the best available peer-reviewed scientific advice from the International Council on the Exploration of the Seas (ICES) and follow the Baltic multiannual management plan adopted in 2016 by the European Parliament and the Council. As regards western Baltic cod, western Baltic herring and salmon, the Commission will update its proposal once the relevant scientific advice will be available (expected by mid-September).

Cod

For eastern Baltic cod, the Commission proposes to maintain the TAC level and all the accompanying measures from the 2021 fishing opportunities. Despite the measures taken since 2019, when scientists first alarmed about the very poor status of the stock, the situation has not yet improved.

For western Baltic cod the scientific advice from the International Council on the Exploration of the Seas (ICES) is postponed to mid-September, and the Commission will update its proposal accordingly. However, since it seems unlikely that the stock has developed favourably, the Commission proposes already now to maintain the spawning closure. It also proposes to maintain all accompanying measures in the eastern part of the catch area, given the predominance of eastern Baltic cod in that area.

Herring

The stock size of western Baltic herring remains below safe biological limits and scientists advise for the fourth year in a row to stop catching western herring. The Commission, therefore, proposes to close the directed fishery and set a TAC limited to unavoidable by-catches, whose level the Commission will propose at a later stage, as ICES is currently not in a position to provide sufficient scientific data.

For central Baltic herring, the Commission proposes a reduction of 54% in line with the ICES advice, because the stock size has dropped very close to the limit below which the stock is not sustainable. In line with the ICES advice, the Commission proposes to decrease the TAC level for herring in the Gulf of Bothnia by 5%, while the situation for Riga herring allows for an increase of the TAC by 21%.

Plaice

While the ICES advice would allow for an increase, the Commission remains cautious, mainly to protect cod – which is an unavoidable by-catch in plaice fisheries as currently conducted. It therefore proposes to maintain the TAC level unchanged.

Sprat

Similarly to plaice, the ICES advice for sprat would allow for an increase. The Commission however advises prudence and proposes to maintain the TAC level unchanged. This is because sprat and herring are caught in mixed fisheries and the TAC for central Baltic herring has to be reduced again significantly. Moreover, sprat is a prey species for cod, which is not in a good condition.

Salmon

ICES has postponed its scientific advice for salmon to mid-September. The Commission will update its proposal accordingly. A special advice from ICES of April 2020 already provides information about the issues affecting these stocks, pointing to the fact  that the MSY objective cannot be achieved for all salmon river stocks if the commercial and recreational mixed-stock sea fisheries are continued at current levels.

Next steps

The Council will examine the Commission’s proposal in view of adopting it during a Ministerial meeting on 11-12 October.

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