Brussels, 27/02/2001 (Agence Europe) - The launching of the "Everything but arms initiative", next 5 March, will make the Union the first world economic power in the world to completely open its market to the poorest countries on the planet, welcomed the European Commission, this Tuesday.
Pascal Lamy, the head of common trade policy and the instigator of this unprecedented act, was obviously delighted to have been proven right, when he announced the agreement to the press (see yesterday's EUROPE, p.9). "We have delivered on our fine words", by providing, at the end of the day, 100% access to these 48 countries "with no exclusions, except of course arms". This done, the EU 15 send a signal of good will to the rest of the world, in the two fold shadow of the United Nations Conference (Brussels, next May) and the 4th Ministerial of the World Trade Organisation (Qatar, November), over the need to "get the most disadvantaged to share in the fruits of trade liberalisation", he said. It is proof, according to him, that the Union clearly heard the message that the developing countries gave in Seattle - where the feelings of exclusion was one of the main causes of the set back felt by the WTO. His Swedish counterpart Leif Pagrotsky, who chaired the discussion, hoped that "others will follow our example".
Quantitative and tariff restrictions on nearly all the products from less developed countries (LDC) will be lifted in less than a week. Nevertheless, for three highly sensitive products, the liberalisation will be progressively completed: - as of 1 January 2002 customs duties in bananas will fall 20% per year until 1 January 2006; - as of 1 September 2006, duties on rice will be reduced 20%, then by 50% in 1 September and 80-% a year later, to finally disappear on 1 September 2009; - duties on sugar will be reduced 20% on 1 July 2006, 50% on 1 July 2007, 80% on 1 July 2008 and will have completely disappeared on 1 July 2009. To compensate for this delay the Union will offer "immediate and real market access" to the 48 countries that the UN considers to be the least developed in the world, while establishing zero duty quotas for their shipments of sugar and rice, on the "initial" basis of their best performance over the last decade plus 15% per year until the end of the transition period. Finally, to convince the few Member States who remain opposed on Monday, the Commission undertakes to: - closely monitor imports of rice, bananas and sugar and to take safeguard measures, if need be, in order to avoid a damaging backlash for European activities in this sector; - to verify respect for rules of origin and anti-fraud measures; - report to the Council in 2005 concerning the impact of this process within the EU, as well as on the LDC and the Africa, Caribbean and Pacific States.