Brussels, 25/03/2003 (Agence Europe) - The European Commission is surprised by and finds "unfair" the fact that the World Bank can "return a verdict" on the "Everything but Arms" initiative before it has even "taken off". It is in fact "clear that the commercial statistics for 2001 that (the institutions) is using cannot possibly reflect the full scope of benefits derived from EBA by the poorest countries", emphasises a Commission spokesperson. In an evaluation report on the opening up of the Community market to LDCs, economist Paul Brenton states that this year (the year of its entry into force), the European initiative benefited only a tiny proportion of exports from these countries, and that the impact of integrating them into the world commercial system, therefore, was negligible.
"This study argues that the EBA initiative, under which we have offered market access free of duty and quotas to LDCs since 2001, is failing to benefit these countries", notes the Commission, replying: - it is too early to be able to evaluate fully the impact of this initiative, which is working towards strengthening the commercial activities of these countries, in association with the technical assistance provided for them by the EU; the total imports coming from the 49 beneficiary countries has risen in value by 8.9% since EBA entered into force; - it is unlikely that the impact will be measurable before the end of 2003 or early 2004, as "producers and other players on the market need time to reorient their production so as to be able to export to the Union"; - LDCs in the African, Caribbean and Pacific regions increased their exports to the EU by 12% in 2001, whereas overall imports from the European block was stagnating and the price of several key raw materials registered sharp drops on the world market; - the sum total of exports of products which were either not exported, or exported in the framework of contingents, i.e. "created commerce", reached a value of 6 million Euros in 2001 (by way of example, Mozambique is exporting sugar to the EU for the first time, with 8.3331 tonnes last year); - it must be borne in mind that 99.7% of exports from the least developed ACP countries already benefit from duty-free access (although some of them are subject to quotas) under the Cotonou agreement. And "even for sugar, rice and bananas, which are the only products subject to a transitional period before full liberalisation (July 2009, September 2009 and January 2006 respectively: Ed), imports are already on the increase", adds the spokesperson. Furthermore, the services estimate, as regards the danger of the rise of mono-cultures and exports on which countries could become dangerously dependent, that preferential treatment granted without time limit or regular re-examination (as is the case for GSP and the Lomé preferences, on the other hand), the certitude of access to the European market for all products will grow in strength, which will, in turn, reinforce the EBA's impact on investments and diversification of production in beneficiary countries.