Brussels, 02/10/2002 (Agence Europe) - The Commission's communication on trade and development was received warmly by Member States on Monday, in Brussels, during a public debate of the External Relations Council (see EUROPE of 19 September, p.9). The EU15 ministers were unanimous in welcoming the relevance of this document. As they see it, it has the merit of setting out the concrete means that the Commission plans to employ to help developing countries strengthen their trading ability and benefit from trade liberalisation by putting trade to the service of development. Pascal Lamy, Trade Commissioner, and Per Stig Moeller, Council President, were both congratulated: - the Commissioner for having, with Poul Nielson, put forward the initiative of this exercise that opens the way for action in order to respect commitments made both at the WTO and at the Johannesburg Summit on sustainable development; and the Presidency for having established a priority link between trade and development. All in fact stressed the need to go from words to action, stressed Ms de Hoop Scheffer, Foreign Minister of the Netherlands, who said that Johannesburg has "shown there is no need for new programmes but to implement what has already been agreed".
The Council President seized the opportunity provided by this occasion to invite the Netherlands and Belgium to give concrete substance to their determination to act by ratifying the Cotonou Agreement. The Dutch Minister announced that the Netherlands parliament would be giving its stance on 1 October. Louis Michel, Belgian Foreign Minister assured that ratification procedure would not be ratified until November because of Belgian institutional "particularities".
Ministers (Netherlands, United Kingdom, Ireland, Germany, Sweden) often mentioned the importance of reforming Common Agricultural Policy and abolishing agricultural subsidies that are to the detriment of the poor countries . The round the table discussion did, however, bring out the slight differences in the order of Member State priorities, as witnessed by their answers to questions put by the Presidency regarding the constituent elements of a trade policy that is beneficial for development, dossiers treated in Doha for which the Union should step up its efforts, and priorities of integrating trade in development policy.
British Minister for European Affairs Peter Hain considered that Pascal Lamy had done excellent work in Doha and that the priority at the WTO should be to lift the obstacles that prevent the poor countries from exporting their textiles, their farm products and products requiring high labour intensity. Eliminating such obstacles, he stressed, would be a far more substantial contribution for these countries than State aid to development. He also called for protection of European agricultural exports to be brought to an end as this is to the detriment of the agricultural exports of developing countries. He felt that saying no to reform of CAP is tantamount to saying no to the fight against poverty. Integrating trade into development policy means, in his view, the obligation to help developing countries export to our markets. Recalling that many conflicts, instability and terrorist threats have their roots in poverty, he said that better access by developing countries to the market of rich countries was in everyone's interest, and invited the Council to adopt conclusions on this subject during its November session.
Sweden inquired into further action to follow up the proposal that it had made before Johannesburg to create an ombudsman to help developing countries grappling with obstacles to their exports. Pascal Lamy replied that the idea, now remoulded, was gaining ground. After discussion with the Council, he declared, the Commission is contemplating setting up a "head desk" to the service of exporters which would not comprise obstacles. He added that the idea of additional means to be made available was being examined.
The minister of the Netherlands felt it was a good thing to help the developing countries increase their trading ability and negotiating power at the WTO but that it was necessary to do more by making the promises for assistance more binding and by giving the beneficiary countries the power to decide for themselves on the most adequate assistance. She urged for simplification of the rules of the WTO, especially those on special and differential treatment, and rules of origin, which are so complicated, she said, that they make trade between the developing countries and the Union difficult. She also called for a timetable for dismantling agricultural subsidies to be fixed.
Cowen, the Irish Trade Minister, felt that access by developing countries to medicines is the priority of the Doha Agenda. He therefore urged for this issue to be settled in the most favourable conditions and for the Union to help developing countries in negotiations. In order to show the interest of the multilateral bodies for strengthening the trading capacity of developing countries, he suggested the creation of an integrated fund. He welcomed, moreover, the breakthrough by Pascal Lamy concerning the opening of the markets to agricultural products that have hitherto been subject to protectionism.
Welcoming the trade talks that have just begun between the Union and the ACP countries (Africa/Caribbean/Pacific), he insisted on the need to take the concerns of these States into account.
"In our view, the main thing is for developing countries to take part at the WTO", said the Finnish Minister. Technical assistance to trade in development cooperation policy must, he believes, focus on support to political reform and on an improved investment climate.
Austria considers that the main thing in the Doha negotiations is to "try to reach a satisfactory result concerning special and differential treatment by the end of the year". Foreign Minister Benita Ferrero-Waldner, also, invited the Commission to push for closing the gap between the different positions on this subject. In her view, in order to integrate trade in development cooperation policy, it is important for developing countries to be involved in Doha negotiations as a priority, for technical assistance to aim at increasing productive capacities and for measures proposed by the Commission to be implemented in order to reduce the constraints linked to the supply from developing countries.
Germany called for the Union's "Everything But Arms" initiative to be taken on board at international level, as well as the determination to take developing countries' interests into account in negotiations with ACP countries. It underlined that the Doha negotiations provided the opportunity to pursue CAP reform, which is increasingly criticised, and invited the industrialised countries to make major concessions without which the Doha negotiation round cannot be concluded.
Portugal stresses the importance of supporting the strategy on consultation with governments and the private sector, of creating a climate of confidence with developing countries and taking into account their different levels of development in order to modulate the treatment reserved for them. He also insisted on better coherence of EU policies n order to give greater attention to the needs of developing countries and make optimal use of resources by avoiding duplication.
Italy insisted for follow-up to be given to the commitments taken during the second world summit on food, so that the EU may help developing countries safeguard the natural resources they have, so that easily useable technology transfers may be carried out and so that large-scale actions may be set in place to help developing countries adjust to multilateral trade. It also expressed the wish that the problem of geographical names, a problem dear to Italy, might be settled in trade negotiations.
France welcomed the comparative analysis of the efforts agreed by the different industrialised partners, an analysis contained in the Commission communication, and felt that better EU communication is necessary as the EU's performance, not only in terms of instruments but also regarding real market opening, puts the EU in an advantageous position. France considers that reflection on increased market access must come within the framework set in Doha. Considering that the Commission is right to insist on the difference between theoretical access and real access by developing countries to the Union market, it considers that technical assistance must aim at giving concrete substance to access facility. Paris insists on the need for coordination between bilateral, European and multilateral aid and on convergence with the aims of the developing countries themselves, mainly those of the New Partnership for African Development (NEPAD).
Greece stressed that trade is not the universal remedy and defended the "trade plus aid" philosophy after the fashion of a programme that it implemented in the Balkans. It believes it is appropriate to adopt a global approach, which integrates more trade policy, other sectoral policies (especially the environment), humanitarian and food aid, good governance and support for the institutions.