Brussels, 12/04/2002 (Agence Europe) - The strategy proposed by the European Commission for negotiating the Economic Partnership Agreements (EPAs) with ACP countries (see EUROPE of 10 April, p.12 and 6 April, p10) was presented to reporters by Trade Commissioner Pascal Lamy and Development Commissioner Poul Nielson as the search for a medium-term alternative to the current unilateral trade preference system governing trade relations between the EU and ACP countries - the search for an alternative that is compatible with WTO rules, will encourage the development of ACP countries based on stronger regional integration and will gradually involve them in the global economy.
The draft negotiating mandate that will be submitted to the Council sets out the framework for the negotiations foreseen under the Cotonou Agreement between the EU and 77 ACP countries. The Commission hopes the negotiations can be launched on 27 September 2002 so the EPAs can come into force in 2008 and lead to free trade zones by 2020 between the EU and integrated ACP regions or even individual ACP countries.
Commenting on the direction and content of the negotiating guidelines Pascal Lamy said that the text he had proposed, in agreement with Poul Nielson, and which was unanimously approved by the College, is based on the fact that trade co-operation between the EU and the ACP has failed. The preferential opening of the European market to ACP countries has prevented neither an erosion of trade (ACP products imported by the EU feel from 7% to 4% between 1970 and now), nor a stagnation in investment (ACP countries receive less than 2% of the EU's direct investment). The EU certainly does better than the rest, absorbing 67% of African exports, compared with 27% for the US, but it is not enough to ensure the development of these countries, he added. Stressing that the EPAs are mostly development instruments, Pascal Lamy outlines the main thrust of the future negotiations, namely 1) additional opening of the European market to ACP products in return for a greater commitment by ACP countries to the policies needed for their development while strengthening the regional integration process; 2) respecting the principle of flexibility and asymmetry of the EPAs - the options available under the WTO rules in terms of time lines and sectoral exceptions for the opening of ACP markets will be fully explored; and 3) providing the ACPs with a genuine technical assistance policy linked to trade so that they can take full advantage of the EPAs.
On the importance accorded to regional integration, Pascal Lamy said that both ACP countries and the EU recognised that a better North/South balance is not possible without a better South/South balance. Asked about how the new EPAs will mesh with the Doha development agenda, he replied that the multilateral negotiations in Doha concern all countries with a view to ending up with a planetary lowest common denominator. The ACP-EU negotiations are like regional negotiations (similar to the EU's negotiations with Mercosur, or Chile or Mexico) and correspond to a level of rights and duties between the partners that is higher than the lowest common denominator because it is part of a partnership for development that has much more powerful integration instruments so that what we provide the ACP countries translates into growth and investment. Poul Nielson added that there were options for the EIB to manage investment to facilitate investing in ACP countries, and an increase in investment would lead to tighter economic links between the EU and the ACP countries. He said that the will to encourage regional integration and trade liberalisation lay at the heart of the future negotiations and saw this as being a constructive approach to globalisation.
South Africa, although it has signed the Cotonou Agreement, will not be involved in the negotiations since it has signed a bilateral trade, co-operation and development agreement with the EU. Cuba will also not be attending the negotiations since while it is fully recognised by the ACP countries as forming part of their group, it has not yet signed the Cotonou Agreement.