Brussels, 25/06/2002 (Agence Europe) - The ACP draft guidelines for negotiating Economic Partnership Agreements (EPAs) with the Union that will be submitted for the approval of the ACP Council of Ministers in Punta Cana on 27 June (see EUROPE of 22 June, p.13), sets out the approach that ACP States must adopt during negotiations, as well as the principles that will have to govern them. It also sets out strategic goals for the ACP, the structure and timetable of negotiations. Here are the strong points of this draft ACP mandate which is the flip side of the EU's negotiating directives.
Approach
In accordance with its strategic objective - achieve sustainable development, eradicate poverty in ACP States and promote their gradual and harmonious integration into the world economy - in negotiations, the ACP group will establish a genuine correlation between trade, investment development and the eradication of poverty. Any ACP engagement in trade negotiations with the EU will depend on account being taken of external factors to these negotiations but that could influence their trade, such as negotiations within the WTO that should end by 1 January 2005, the Union's enlargement that should come in 2004, the reform of the EU's common agricultural policy, the review of the system of generalised preferences in 2004, the regional integration process in several ACP regions and sub-regions, some of which should lead to the setting up of customs unions, trade negotiations between ACP countries and third parties (the Caribbean, for example, is currently negotiating free trade agreements with the Americas). The ACP States must acquire or develop a capacity to negotiate and conduct in-depth studies not only at regional level but also national, so as to determine the impact of trade liberalisation on the economies of the different ACP States (including in the different sectors of their economies), the adaptations they will have to make, the cost of these adaptations and measures to take to be able to draw all the benefits from the EPAs.
Principles
The EPAs to be negotiated are essentially focused on sustainable development.
The ACP group's unity and solidarity will guide negotiations over EPAs as these are its strong points in negotiations with the EU, as well as within the WTO, where the ACP States will continue to promote and preserve their interests in the framework of the post-Doha working programme..
ACP States are attached to preserving the Lome acquis. The Cotonou Agreement itself states that Economic Partnership Agreements must help in improving market access. ACP States thus consider that they cannot have less than what they have hitherto benefited from and would, notably, like to secure the simplification and improvements to the rules of origin.
Compatibility of EPAs with the rules of the WTO: the ACP States call for this principle to be reaffirmed and for WTO rules to be improved, notably those relating to regional trade agreements, to take better account of the development dimension. They call for talks with the Union to back the ACP stance on this issue.
Flexibility: given that 40 of the 76 ACP States that may negotiate are LACs (least advanced countries), the Union should show flexibility in negotiations.
Priorities of regional integration: the ACP States consider that regional integration processes must take priority over EPAs in the framework of commitments made vis-à-vis the Union regarding trade liberalisation, the goal being to consolidate the ongoing processes in different regions and not to hamper them.
Special and differentiated treatment: this special treatment of ACP States must be based on fairness and account being taken of the different levels of development. It will have to be accompanied by special treatment for the vulnerable LACs and small or insular ACP countries.
Additional resources for adjustment: regarding the problems of adaptation that will stem from implementing EPAs for ACP countries (loss of revenue, unemployment, need to modernise production structures and create the required institutional capabilities), ACP States consider that additional financial resources will have to be supplied to them to help them take on the cost of the adjustment.
Timetable
The ACP States would like two-phase negotiations:
September 2002 - September 2003 would be the negotiating phase with the ACP Group as a whole to identify issues of common interest the principles, objectives, scope and contents of EPAs, as well as the financing and cost of adapting ACP economies.
2003-2007 would be a regional negotiating phase with ACP States able to engage in negotiations. It would notably concern tariff negotiations and other specific sectoral engagements at national or regional level, as well as on issues specific to ACP countries or regions.
The launch of negotiations will take place on 27 September 2002 at a joint ACP/EU ministerial session (devoted to the opening ceremony and organising the work), preceded by a extraordinary meeting of ACP ministers (25-26 September), itself preceded by a joint ACP/EU trade ministerial committee, the date of which remains to be determined.
The ACP countries regard it necessary to discuss negotiations as they progress and adapt the guidelines consequently. Two reviews would thus be scheduled: the first in September 2003 at the end of the first phase of negotiations, the second in September 2006.
Structure of negotiations
The draft mandate recommends that existing negotiating structures, used to this exercise, be maintained and strengthened. Thus, the ACP Council of Ministers will be the political branch of negotiations, assisted by the ministerial trade committee (small formation of the Council composed of 18 ministers). A technical level, negotiations will be undertaken by the ACP Committee of Ambassadors, with the backing of the ambassadors in Geneva. The ACP Secretariat will assume inter-institutional co-ordination throughout negotiations (with the whole ACP Group in the first phase and between negotiating bodies at regional level in the second phase).