Brussels, 26/11/2009 (Agence Europe) - The negotiation of economic partnership agreements (EPAs) is largely in a situation of stalemate. The ACP countries feel abandoned by the European Union which they reproach with wanting to force them to sign agreements that would be detrimental to their development (see EUROPE 10027). It is in this context that the French secretaries of state for foreign trade and cooperation, Anne-Marie Idrac and Alain Joyandet, recently wrote to the Swedish EU Presidency, the European Commission and member states, suggesting that the initiative should be taken up and the deadlock broken. The document, which comes just as France is accused of reducing its development aid, suggests not only more “flexibility” on the trade chapter but also reaffirmation of the political dimension of EPAs. While, under the influence of Commissioner Peter Mandelson, the EPA trade dimension had stolen a lead over the development chapter, this second aspect of the French proposals now takes on major importance. It remains to be seen what welcome will be reserved for these proposals by the other member states and the new Commission.
The two secretaries of state consider it is appropriate to seek flexibility on the trade chapter while promoting the conclusion of real regional agreements. The European Union may thus envisage more limited opening of ACP markets below the current rule of 80% and longer transitional periods. The text notes that, although commercial opening is a source of economic growth, the EU cannot call on the least advanced or developing countries to show the same level of opening as that asked of emerging countries. The EU, however, should also have a means of pressure, France says, taking the view that it would be suitable to raise the question of maintaining the preferences of ACP countries that have not signed the interim agreement. Maintaining preferences poses a problem of equity between ACP countries and removes all incentive from regional EPAs, the two secretaries of state say.
Secondly, the European Union may strengthen the development chapter of EPAs. It is considered in Paris that the EU must be able to open a discussion on financial flanking measures. In other terms, the encouragement to commercial opening should be substituted for the logic of compensation for customs receipts, often recommended by ACP countries. The EU should accompany its ACP partners throughout the transition period, for example, through a protocol of agreement signed in parallel to the EPA. It is a matter of mobilising all available resources through existing Community funding, without banning the use of loans as a complement to donations, the French text states, adding that, operationally speaking, regional task forces, together with aid operators and multilateral lessors, would define the priorities for action in each region concerned. Finally, particular attention should also be paid to the funding sources for the regional organisations of ACP countries. The elimination of Community levies in the absence of a viable alternative would make these organisations considerably more fragile. (O.J./transl.jl)