Brussels, 26/03/2001 (Agence Europe) - Trade issues in the context of multilateral trade liberalisation were the focus of debates at the ACP/EU Parliamentary Assembly which met last week in the Gabonese capital. The insistence by the Joint Parliamentary Assembly that ACP States should not be overlooked in trade globalisation was based on: - questions raised by ACP and European representatives concerning the forthcoming negotiation of a new trade system between the Union and the 77 countries of Africa, the Caribbean and the Pacific, in conformity with WTO rules; - reservation expressed regarding the "Everything But Arms" initiative, that will grant all lesser developed countries in the world - whether they belong to the ACP or not - access to the Community market for all their duty-free products; - the appeal for access by ACP countries to generic medicines; - and the respect of food security in ACP/EU trade.
Speaking on behalf of the Presidency-in-Office of the Council, Gun-Britt Andersson, Swedish Secretary of State for Development Cooperation, said she was aware of the problem posed by the very little added value made by ACP countries that mainly export unprocessed commodities. Stressing that there is no alternative to trade liberalisation, she felt that this would at least partially bring about the beginning of a solution to the problem as "we know that the countries open to international trade have achieved more sustained growth". However, she observed that "growth is a necessary but not sufficient requirement for fighting against poverty and for assuring human development". In other terms, liberalisation will only be positive if it is accompanied by internal policies (technological development, cultural exchanges, the exchange of information and ideas, support of human rights, the move towards democracy, and respect of the environment) allowing globalisation to be managed to the benefit of the poor populations. "Regional integration will make it possible to increase competitiveness and will thus be an important step towards the achievement of an objective that represents the successfully completed integration of the ACP countries in the world economy", she affirmed. She stressed the importance in this respect of the regional ACP/EU economic partnership agreements, that should be concluded by 2008, and the active participation of ACP countries in international negotiations within the WTO.
Hidipo Hamutenya, President-in-Office of the ACP Council of Ministers, told parliamentarians of two reasons of concern for the ACP, linked to the fact that the WTO derogation for the commercial section of the Cotonou Agreement is still pending, and to the repercussions that future enlargement of the Union to twelve new countries will have on the ACP/EU partnership. Speaking of ACP/EU trade negotiations scheduled to begin in September 2002, he stressed how little time there is for preparing this deadline, all the more as, before beginning negotiations, ACP countries must carry out impact assessment studies on the different kinds of agreements contemplated and the configuration of ACP regions called upon to sign them. The ACPs have already designated eighteen participants at the joint ministerial trade committee that should pilot the talks, it was announced by the ACP Council president, who invited European partners to follow closely behind. In answer to a question by Glenys Kinnock (PES, UK) on the state of preparedness of the ACP countries, Mr Hamutenya specified that the ACP regional integration organisations will play a key role in preparations and negotiations, but that these would be piloted by the ACP Council of Ministers.
For better ACP participation at the WTO
Jose Rijo Presbot, deputy from the Dominican Republic, stressed that globalisation widens the gap between North and South, by promoting the emergence of a "global elite" linked by common values and its technological domination that excludes the population of the rest of the world. Stressing that 30 ACP countries belonging to the WTO did not have the means to take part in the Seattle talks, Dr R. Davis, South African deputy, called for restructuring of the WTO so that the interests of the developing countries may be duly taken into account. Given the complex link between trade liberalisation and the eradication of poverty, Caroline Lucas (Greens/ALE, UK) called for the next round of talks at the WTO to be postponed until the assessment of the results of multilateral trade agreements has been made. Mr Fakenberg, representing the European Commission, hoped to be reassuring by specifying that the WTO rules will allow gradual opening of the ACP markets, together with flanking measures to promote their adjustment to competition. Recalling that no ACP State was able to take part in negotiations that led to the creation of the WTO in 1995, Mr Ouedraogo, WTO Deputy Director General, observed that the launching of a new round of talks would give the ACP countries the possibility to play a role in changing its rules.
"Everything But Arms" initiative will place poor countries in competitive situation
The "Everything But Arms" initiative, welcomed by Anders Wijkman (EPP/ED/S) and Arlindo Cunha (EPP/ED, P) as a noteworthy advance to the Union's credit, despite its high degree of protectionism in the agricultural sector, gave rise to reservation among many MPs. Thus, Mr Cheltenham, deputy from Barbados, condemned the lack of prior consultation of ACPs, which would have allowed an assessment to be made of the potential impact of the initiative on the ACP non-LDC countries whose products will be in competition with imports from LDCs which are not ACP countries. Ms Andersson acknowledged that the fears expressed by the ACP group regarding the eventual repercussions of the initiative on their own preferences were legitimate. She felt, however, that their arguments had been taken into account since "ACP countries are being left the time to successfully restructure their economy, a central element of the Cotonou Agreement".
Paul Lannoye (Greens, B) was highly critical of the idealistic view that "making poor countries enter competition would help to make them richer". He also warned against the danger that the poor countries would be encouraged to give preference to export crops to the detriment of their food crops for sustenance. He criticised the wording of the initiative that is misleading in that it suggests the ACP countries would export arms to the Union whereas it would be more appropriate for the European countries to stop selling weapons to developing countries.
Susan Gordon (Trinidad and Tobago) deplored the fact that ACP rum was refused recognition as a sensitive product. Richard Howitt (PES, UK) accused the European agricultural lobby of having sacrificed the needs of developing countries on the altar of its own interests and the Council of having breached the Cotonou Agreement. He also urged the EU15 ministers to speed up adoption of support measures to ACP countries that produce rum in order to help them to increase their competitiveness in this sector.
In answer to a question put by Hedwig Keppelhoff-Wiechert (EPP-ED, Germany) concerning sugar exports from LDCs to the European market, Ms Andersson said she was aware of the sensitive nature of this product. She made it clear that the negotiation of new trade agreements will begin after reform of the Community sugar regime, and that the Swedish Presidency had set itself the priority of working towards launching a new round of WTO talks that will deal with access to the European market.
Edwin Laurent, St-Lucia Ambassador with the EU, deplored the fact that the Council had ignored the opposition of the ACP trade ministers to the new Community banana regime, which could bring about a loss of at least 40% in ACP markets. This figure was challenged by the European Commission representative. To similar concerns expressed by Glenys Kinnock, addressed to the Council, Ms Anderson expressed the hope that an agreement to fill the quotas on a twice-monthly or weekly basis rather than on an annual basis would improve the situation of ACP producers.
Health and food security: parliamentarians express disapproval of two-speed policy to
the sole benefit of developed countries
Indignant over the legal action taken by 39 pharmaceutical countries against the South African government which is seeking to eradicate the AIDS epidemic through the local production of cheaper generic medicines, many ACP and European representatives expressed disapproval of the refusal by pharmaceutical multinationals to grant the poorer countries the right of access to affordable medicines. Glenys Kinnock (PES, UK) criticised the "apartheid in medicine" that the pharmaceutical industries of the north are thus seeking to impose. She expressed indignation about the fact that they devote 97% of their R&D investment to the small percentage (only 10%) of diseases that affect the developed world, including obesity. Richard Howitt (PES, UK) accused the Glaxo Wellcome representative of having lied when he told the previous parliamentary assembly that the price of medicines had fallen. Anders Wijkamn (EPP, ED, S) called for a global financing mechanism to support R&D on diseases that affect the developing countries, as well as the purchase of medicines to be distributed to the poor.
The hypocrisy of the Union, which exports to developing countries those food products that are refused by Europeans for food safety reasons, at the risk of flooding local markets and destroying local food channels, was highly criticised by several MEPs. Horst Schnellhardt (EPP/ED, D) thus urged Europe to resist the temptation of dumping in order to get rid of its stocks. He also observed that the very strict measures adopted by the Union to fight the mad cow disease should apply in exactly the same way to European exports to ACP countries. Didier Rod (Greens, France) denounced the 300% rise recorded in exports of British beef and veal towards Nigeria during the last quarter of 2000.