Africa's leaders, frustrated after almost a decade of failed efforts to seal trade deals with Europe, are heading into a summit with the European Union next week ready to do battle, or walk out.

"If there's no progress, we may as well go back to square one," said an African Union diplomat, speaking on condition of anonymity ahead of talks Monday and Tuesday in the Libyan capital. The gathering will involve 80 EU and African Union nations.

After years of wrangling over Economic Partnership Agreements (EPAs) between the two continents, the prickly issue was studiously left off the summit agenda. But irate African leaders are flying into Tripoli brandishing ultimatums, the source said.

Chinese billions
The EU, Africa's leading aid donor, remains its top trading partner, but risks being elbowed aside as Brazil, India and other emerging giants join China in chasing the spoils of the resource-rich continent.

China has pumped billions in investments in oil, mining and manufacturing while winning hearts and minds with soft loans and aid in infrastructure and energy, geared to lift the world's most destitute continent out of poverty.

"China is doing a lot that's tangible and new," said Andrew Sherif of Netherlands-based thinktank, the European Centre for Development Policy Management. "Africa now has more options," he told reporters.

Custom duties
On the other hand, the Africans complain the EU is setting conditions for the EPAs that will throw up new hurdles for poor countries striving for economic progress. Britain-based NGO, Ofxam, said the African Union had drafted a paper ahead of the summit "suggesting radical new ways forward, including - if no progress is made - the abandonment of the EPA negotiations altogether."

The stand has the backing of all of Africa's six regional economic communities, Oxfam said in a statement. Topping Africa's gripes are EU demands that its nations eliminate most import tariffs.

"But customs duties for many poor small nations account for the major part of government revenue," the diplomat told reporters. "This cannot help us develop. We need compensation in such cases," he added.

African manufacturing
Saying commitments by African countries in EPAs should be matched by financial commitments from the EU, Oxfam said for instance that Cameroon stood to lost 99 million dollars and Cote d'Ivoire 139 million.

There are fears also that a sudden removal of barriers opening the floodgates to European products would harm fledgling African manufacturing before it can stand on its own two feet. "We need time to strengthen in some areas," the source added.

Renewed growth
Figures released by the bloc on the eve of the summit showed renewed growth in trade between the EU-27 and Africa for the first nine months this year. Exports stood at 90 billion euro against 79 billion in the same 2009 period, and imports at 96 billion against 79.

Source: AFP