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Europe Daily Bulletin No. 7866
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GENERAL NEWS / (eu) eu/acp

ACP States prepare negotiations with EU over future regional agreements - "Declaration" by Trade Ministers

Brussels, 18/12/2000 (Agence Europe) - The first part of the ACP (Africa, Caribbean, Pacific) Ministerial week in Brussels was dedicated to a meeting of the Trade Ministers from the 77 countries. The second part saw the meeting of the ACP Council of Ministers, which notably decided to welcome Cuba into the group (see EUROPE of 15 December, p.4).

During their meetings, the Trade Ministers from the 77 (now 78) considered the strategy implemented for economic and commercial cooperation with the European Union in the framework of the Cotonou agreements and ways in which to actively participate in the multilateral trade system that is being formed (see EUROPE of 13 December, p.8). The opening, in 2002, of the negotiations in view of the entry into force, in 2008, of the regional economic partnership agreements (REPA) between the EU and the regional entities integrated into the ACP, compatible with WTO regulations, the possibility of a new negotiation round in the WTO, the up coming enlargement of the European Union and the imperative need for the ACP to improve cooperation amongst themselves have mainly guided the strategy and action plan defined by the Ministers in their final declaration.

During a press conference, the Namibian Minister for Trade, who had chaired to session, asserted: "the declaration and the action plan will guide the ACP in the two years to come for the implementation of the Cotonou agreement and the preparation for the negotiating of the REPA. We have given the mandate to the Ambassadors for them to refine and specify the action plan. We want to be ready to respect the timetable. We will meet once more at the start of next year to ensure to follow-up of this plan".

Concerning the geographical configuration of the integrated regional entities that negotiate with the EU, the President showed himself to be confident. "We will see how the groups are configured, and the consultations between the ACP and the EU will enable us to determine to methods for the programming of regional aid", he announced. According to him, the talks on the preparation of the REPA have, at this stage, mainly concerned the negotiation structures; the foundations will be broached in February/March. Questioned over the welcome given by the Ministers to the Commission's initiative "everything, but arms" (that aims to extend to all less developed countries, the unilateral preferential systems enjoyed by the ACP until the end of 2007), the President insisted on "the solidarity of the group with an initiative in favour of a special treatment for the LDC, that is completely appropriate". However, he expressed the hope that the implementation of this initiative does not provoke the erosion of the favourable conditions offered to non-LDC ACP countries. An ACP expert explained that the ACP States would undertake impact studies for the generalised preferences on the ACP that presently benefit from them, in virtue of the protocols on basic products, export contingents with zero duty towards the EU for sugar, bananas and beef, products presently not covered by the system of generalised preferences (SGP). The possible repercussions of enlargement of the EU on ACP/EU relations will also be the object of a study, notably with regards to access to European markets, the development of common agricultural policy and technical assistance.

Below are the principals and main themes of the strategy outlined in the final declaration.

1. Preparations in view of the negotiations of new trade agreements. It is for the ACP's to decide themselves, taking the time to think, on the configuration of the regions, which will negotiate with the EU (some countries, such as Nigeria could, for example, decide top negotiate alone). The ACP Secretariat will make contract with the ACP States and the regional ACP organisations the carry out an impact study on all the possible options. The selection of the regions targeted by the financial aid allocated by the European Development Fund (EDF) must not be linked with the configuration of the ACP for the negotiations of the new trade agreements.

Wide consultations will be organised by the ACP with various interested parties, both from the ACP countries as from the EU, on the content and impact of the new agreements envisaged. The negotiation of these agreements should not sap all the possible alternative to assure non-LDC ACP countries, which are not able to negotiate the REPA, a new trade framework at least equivalents to their present situation.

Certain provisions of GATT/WTO will be examined in view of obtaining the flexibility necessary to preserve the vital interests of the ACP States during the negotiation of new agreements

The mixed ACP/EU Ministerial Trade Committee must be operational as quickly as possible.

The ACP Secretariat will follow the development of the situation in the WTO to facilitate the preparation of the ACP for the setting up of new international agreements.

2. ACP's effective participation in multilateral trade

Knowing that the fourth WTO ministerial conference is to be held in December 2001 at the latest, the ACPs must decide on common positions in time. Ministers note with concern that many of the questions of the Seattle Conference have not been resolved, notably issues linked to the implementation of agreements and decisions of the Uruguay Round and the inherent imbalances in these agreements and decisions. Setting out from that observation, they stress the need to take account of the specific concerns and needs of developing countries and warn against the launch of a new round of negotiations as long as the integrated framework for the commercial development of developing countries and operational programmes relating to this have not been correctly implemented. Whatever, elements that could be abusively used as non-tariff barriers or technical obstacles to trade (such as work or environmental standards) should not figure in trade negotiations.

As for the derogation requested of the WTO for those provisions of the Cotonou Agreement that extend the preferential regime until 2007, ministers called on all the parties concerned, notably the European Union, to intensify their efforts to secure that derogation. The also recall the need to facilitate accession of ACP States to the WTO without asking them to assume obligations or commitments beyond those that normally apply to that category of countries.

ACP regional integration organisations provide their contribution to adopted strategy

Meeting in Brussels a few days earlier, the heads of ACP regional integration authorities guided the strategy of the ACP Ministers of Trade. Aware that regional integration can contribute to to strengthening the economic growth and development of countries as well as the harmonious and gradual insertion of ACP economies within the world economy, they acknowledged that the ACP countries had everything to gain from strengthening the regional level so as to harmoniously integrate the world market, but warned against the link the European Union seems to want to make between planning regional aid and areas of regional economic partnership. They pointed out that REPAs exclusively involve trade, which only covers a small part of regional cooperation. Other chapters such as culture, education, road infrastructure are, in their eyes, other essential chapters, very distinct, even though they do serve regional trade.

In their conclusions, ACP regional integration organisations consider that: 1) strengthening regional cooperation agreements in force can serve to rapidly improve the economic results of the ACP countries; 2) in an environment of peace and security, regional integration can serve as a means of rendering ACP regions more attractive for foreign investment; 3) a stable macroeconomic environment, accompanied by an appropriate legal framework is an essential condition for ACP countries to be able to drain and retain investments; 4) Article XXIV of GATT should be interpreted flexibly, so as to admit future trade agreements that may be concluded between the ACP and the European Community.

ACO regional integration organisations regard it important to clearly define and as soon as possible ACP regions to allow for the planning of funds, and stress that this responsibility is exclusively that of the ACP group. For many ACP countries, the fact of belonging to many regional groups renders the designation of planning regions complicated. The ACPs also consider that the deadlines of March 2001 and June 2001, put forward by the European Commission for completing the regional cooperation strategies and for that of the indicative regional programmes, are indicative dates. The dates of June 2001 and September 2001 seem to them better for a valid preparation of the programmes. An early indication of the allocation of resources by the Commission would facilitate the process of drawing up indicative regional programmes.

By reaffirming the importance and usefulness on intra-ACP cooperation, the heads of the organisations observe that it has so far been unfruitful and recommend that, in future. More stress be placed on activities at microeconomic level. The organisations welcome the 20 million euro allocation earmarked to support ACP States for preparing negotiations through the strengthening of the organisational and technical structures of regional organisations.

Taking prt in that meeting were: the common market of the Caribbean/Caribbean Forum (Caricom/Cariform), the common market of Southern and Eastern Africa (Comesa), the Community of East Africa (CAE), the Economic community of the States of West Africa (Cedeao), the Economic Community of of the Central African States (CEEAC), the Economic and Monetary Community of Central Africa (Cemac), the Commission of the Indian Ocean (COI), the Organisation of African Unity (OAU), the Southern African Development Community (SADC), the West African Economic and monetary Community (UEMAO) and the Secretariat of the Pacific Forum. Unctad, the WTO and the Secretariat of the Commonwealth were represented as observers.

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