Brussels, 20/09/2000 (Agence Europe) - The European Commission is proposing that the European Union go beyond the Quadrilateral initiative (EU, United States, Japan and Canada) in favour of the Less Developed Countries (LDC), by liberalising the access to the Community markets not for some but for all their exports, including (in three years) products as sensitive as bananas, rice and sugar. "Everything but arms", it is thus that is named the proposal jointly made, this Wednesday, in the Council and European Parliament, on the initiative of Pascal Lamy.
By commenting on the new initiative before the press, the head of trade policy announced: "There has been plenty of talk about how market access for poor countries is critical if we are to tackle their growing marginalisation in the globalising economy. Everyone seems ready to make a commitment at the political level, but talk is cheap. We now need to move beyond opt-out clauses. It is time to put access to our markets where our mouth is. That means opening up across the board, and for all the poorest countries. So we want to move to liberalise everything but the arms trade. I hope the Council and Parliament can adopt this proposal swiftly, and that other developing countries quickly follow suit".
The initiative proposed by the Commission is therefore unilateral and totally independent of any agreement with the United States, Japan and Canada. These countries have already said "yes", although somewhat laboriously and with specific reservation in each case, to the earlier initiative in favour of LDC, floated by the EU during the Seattle Conference. They pledge to liberalise market access for most exports from the 48 poorest countries of the world, as identified by the relevant international organisations. The Cotonou Agreement with the 39 LDCs of African, Caribbean and Pacific (ACPs) has set in motion a process for keeping to this liberalisation commitment, to the benefit of all LDCs, by 2005 at the latest.
The four parties also pledged to support reform of commitments for implementation of multilateral agreements adhered to by the lesser developed countries, as well as to help these countries strengthen their capacity to produce exportable goods and to grant them technical-financial assistance. For the past few months, Pascal Lamy had personally put forward the idea of going from the ceilinged opening accepted by the Quadrilateral to total opening. This is the step forward that the Commission now invites the Union to take as swiftly as possible. This signal for opening and support to the poorest is something "we hope to give throughout the world and to our developed trading partners. Our aim, is for Canada, the United States, Australia and Japan to do the same", specified Mr Lamy.
This unprecedented commitment, which would come into force immediately after the "go ahead" hoped for from Council and from the European Parliament, would consist in granting unlimited access free of quotas and customs duties to all products from lesser developed countries, except arms. At the present time (1998 figures), the Union is already the main destination for exports from these countries, that is 56% of the total for a value of EUR 8,714 million.
But the existing regime still excludes 10% of the tariff lines contained in the Community's customs tariff and 1% of all trade flows. The idea is now to extend free access to an additional 919 tariff lines. For three highly sensitive products, for which the EU's Common Market Organisations are currently being reformed, i.e., rice, bananas and sugar (for which LDC/EU trade represents 20 million euro), implementation will be gradual in three stages over three years. The tariff liness relating to weapons, munitions, etc.. or 25 in all, would for their part be excluded. The initiative would however include numerous products that are not now imported into the Union, given the high level of protection at the borders.
"We have been through this line by line, product by product", and, "of course, some of the products are relatively sensitive", Mr. Lamy conceded. But, he said, "there is no point in offering concessions on products that the LDCs cannot export". He also acknowledged that free access was not enough on its own for these countries to be able to take advantage, whence the retention o the previous initiative, including assistance, financial commitments' etc.. From the same point of view, the beneficiaries are urges to strengthen their willingness to reform their economies and develop. "That does not only mean an economic policy, but also the prevention and resolution of conflicts", he said. Finally, to avoid abuses, among others that LDCs do not fraudulently use the scheme to take advantage of the free access onto the European market, the proposal contains "safeguard and anti-fraud clauses". Lucid, the Commissioner nevertheless a "whole load of technical objections" on the part of Member States and, although in a rush, admits that "it will take time to convince people".