The European Union appears to have backed away from a threat made just last month to end unilaterally trade privileges extended to its former colonies unless they sign new trade deals.

Peter Mandelson, the European trade commissioner, had warned the so-called African, Caribbean and Pacific (ACP) countries that, unless they agreed to open up their services and government procurement sectors, he would be forced to reduce their tariff-free access to the 500m-strong market on January 1.