Brussels, 05/04/2002 (Agence Europe) - The European Commission will outline on Tuesday, in Strasbourg, the guidelines it will be setting out in negotiations for economic partnership agreements (EPA) with African, Caribbean and Pacific countries within the framework of the Cotonou Agreement linking the European Union to 77 ACP countries These negotiation directives, the presentation of which was delayed by a week (see EUROPE 3 April page 2), will take the form of a recommendation to the Council authorising the Commission to negotiate with ACP countries. The stakes at play in these negotiations (due to begin in September) are enormous as they intend to implement by 2008, a new economic and trade partnership between the EU and integrated regional entities, the ACP countries, compatible with WTO rules, which will break the preferred nation system currently in force. The long term objective is to set up free-trade zones between the Union and the regional entities or countries, favouring the harmonious integration of these countries into the global economy, with regard to their political choices, and without loosing the development objective sought in the Cotonou Agreement, concluded in June 2000 and which set out the framework for the ACP/EU partnership focusing on the eradication of poverty.
The document that the College of Commissioners will adopt on Tuesday, on the initiative of Commissioners Lamy (Trade) and Poul Nielson (Development) points out that the ACP must still inform the Commission which regional entities will be negotiating with it. The Commission considers that the uncertainty on this subject must not hold up negotiations. This explains its decision to present the principles and guidelines that it recommends for guiding this exercise and which will outline the contents of future agreements. They are as follows:
- The EPA aims to introduce the gradual and reciprocal liberalisation of trade in goods and services and should contribute to the political dimension and objective of development in the Cotonou Agreement. In this way it is expected to promote economic, cultural and social development of ACP countries and contribute to peace and security, as well as encouraging a stable and democratic environment. The agreements are principally aimed as instruments of development, compatible with poverty reduction and the gradual integration of ACP countries into the global economy.
- The Commission believes that the EPA provides two advantages. It establishes a stable framework that is clear and transparent for economic and trade relations with the ACP and the EU, as well as allowing the promotion of local economic activities in ACP countries and attracting regional and international investments. By eliminating trade barriers, they will be able to widen the markets of ACP countries and enable them to improve their levels of specialisation, increase their competitiveness and attract investment. The Commission is, nevertheless, aware that the need of ACP countries to adapt to liberalisation will necessitate political, economic and social adaptation policies, as well as accompanying measures from the Union, financed by the European Fund for Development, thus ensuring the sustainable development of poor countries.
- EPA negotiations will take into account the level of development, economic, social and environmental restrictions in ACP countries and their ability to adapt their countries to a new trade system. Full use will therefore have to be applied in accordance with WTO rules on flexibility: a sufficiently large transition period (10 years as a general rule, indeed more if necessary) will be in force with regard to products covered by trade liberalisation and the timetable for dismantling customs barriers and to the reciprocity of the degree of opening up of the different markets, taking into account that ACP countries are not of a size to directly compete with European products. It is accepted that less advanced countries in EPA will remain on the margins of the reciprocity rule, which forms the basis of the economic partnership agreements.
Greater access to the European market for the products of 37 ACP countries, which are not counted amongst the less advanced countries (these already benefit form free or practically free access for their products to the union market under the "Everything but Weapons" initiative), will be granted, depending on the progress carried out by these countries in regional integration.
