Königswinter, 14/03/2007 (Agence Europe) - It would be an exaggeration to say that all the African, Caribbean and Pacific (ACP) states, linked to the EU through the Cotonou Agreement, feel totally reassured at the prospect of concluding Economic Partnership Agreements (EPAs) with the EU by the end of 2007. They all felt, however, that the informal dialogue they had with EU development ministers in Petersberg, just outside Bonn, on 12-13 March had removed a number of misunderstandings over the ability of these EPAs to genuinely serve the development of their countries.
Such was the wish of Heidemarie Wieczorek-Zeul, German Federal Minister for Development Cooperation and current President of the EU Council, who called this informal session of the Development Council, enlarged to include around 30 ACP ministers (see yesterday's edition of EUROPE). Her initiative was unanimously applauded and her wish granted - and this, even though the six regional ACP sub-groupings which are negotiating (through the SADC for Southern Africa, the EMCCA for Central Africa, the ECWAS for West Africa and the ESA for East and Southern Africa) are all at very different stages of progress in negotiations. The Caribbean, which would like to conclude as ambitious as an agreement as possible within the timescale, including services and the so-called Singapore questions, has separated itself from the group (see EUROPE 9377). The Pacific, too, is interested in liberalisation of services. The four African regions do not want anything to do with such a thing, and hope to restrict the perilous liberalisation exercise ordered by the WTO to products which, for the moment, are not big enough to take on European competition. In all cases, negotiators must now get down to the final decisive phase focussing on market access and the timetable for liberalisation, along with transition periods which could last up to 25 years (or even more, if the ACP countries get their way) and safeguard clauses for the most sensitive products. The hardest part has still to be completed, then, but information from Trade Commission Peter Mandelson and Development Commissioner Louis Michel about the financial resources which will accompany the implementation of the EPAs, with the support of member states, was, officially at least, of some reassurance to the ACP countries. With regard to negotiation, the strategy remains in place, on both sides. And for both sides, the most important thing is that the offers become reality.
“I am very encouraged by our informal Council, particularly by our joint meeting with ACP ministers. We had three hours of dialogue to listen to what each was saying, to understand and take stock of the progress of the talks. This dialogue took place in an atmosphere of partnership and friendship. Each side set out its hopes and demands. What the two Commissioners said was very helpful. We share the conviction that EPAs are instruments of poverty reduction and development in our partner countries. There is consensus on the need for a clause on cooperation for trade-oriented development clause to be inserted, and on the need for long transition periods, guaranteeing the asymmetry of the market opening. There is a need for a clause assessing the effects of EPAs and a clause following up these agreements. Trade aid is needed to help develop the partners' trading capacities,” said Ms Wiczorek-Zeul at the closing press conference. She recalled the promise of €2 billion per year until 2010 made to ACP countries. This sum would come half from the European Commission and half from member states. “The ACP countries have said they wanted regional funds created. We have taken this on board, because the idea of proximity funds is a good one. We confirm our desire to conclude within the timescale,” she added, and she gave her assurance that the German presidency “will do all it can” to bring negotiations to a successful conclusion during its period of office, “and will go beyond this through its political support for the process”.
Speaking for the ACVP Council, Hans Joachim Keil, Samoan Minister of State for Trade, Industry, Labour and Trade Negotiations, tha nked Ms Wiczorek-Zeul warmly for giving the ACP countries the opportunity to have this dialogue with European development ministers. “This meeting was very important for the negotiations. The ACP regions thought it was not possible to find success. During the technical meetings with the Commission, we didn't make enough progress. ACP Ministers told the EU of their disappointment and concern. My impression is that we have made quite a lot of progress. Our concerns and objectives were given consideration. We will continue to work towards conclusion before the end of the year,” he said.
On the sidelines of the Council, Mohamed Ibn Chambase, President of the Commission of the Economic Community of West African States (ECWAS) told EUROPE how difficult it was to say that conclusion before the end of the year was possible because, in West Africa, work was ongoing in several areas, on the one hand to determine very precisely the funding required “calculated scientifically”, and on the other to “work for agreement on a competition policy and setting up a joint investment policy at regional level”.
Nigerian Trade Minister Aliyu Moddibo Umar expressed doubt that West Africa would be able to sign an EPA before the conclusion of the negotiating round on development at the WTO. “We expect the EU to back us to have greater access, with fewer hindrances, to the market. The first obstacle is the timetable for signature by the end of the year. That may not be in our interests or possible if the WTO Doha Cycle has not been concluded successfully. To implement an EPA, we have to be sure that Doha is in place,” he told EUROPE. The second obstacle, he said, was in the loss, “calculated at $700 million” for his country alone, from forthcoming tariff removal - a loss of revenue which, he felt, could not be compensated by the €2 billion in promised trade aid for all ACP countries. He was most unhappy that the European Commission had “rejected our impact study”, on which EPA implementation rested. The third obstacle was all the technicalities which meant that “our goods as a whole do not completely match the demands of the European markets as far as environmental standards, sanitation and labour practices are concerned”. He said, however, that he was “very happy with the efforts made” by the German presidency to re-invigorate discussions.
Junior Lodge, Caribbean Chief Negotiator, said that the Caribbean had a level of ambition which matched its region's economic imperatives and profile. “We want to conclude because there is no alternative. Any alternative to an EPA would give us less than Cotonou. If we can conclude an EPA which is good for development, that would be in our interests”. Each region negotiates separately, but “all the regions agree on the need to conclude as far as goods are concerned”, before the end of 2007, and to include “a section on support for development” in the draft texts, Mr Lodge said.
Before the start of the dialogue between ACP and EU Ministers, Commission Chief Negotiator Peter Mandelson told press that the status quo was not an option, given the poor performance of unilateral trade preferences which were being eroded without encouraging the development of ACP countries (see yesterday's edition of EUROPE). Commissioner Louis Michel said that “thirty years of preferences and tens of billions have not brought any improvement in the ACP position in world trade. Liberalisation will be asymmetrical, will take place over long periods and will be accompanied by additional means, as has been confirmed today. The original rules will be amended. And we are ready to devise regional flanking funds, open, to all member states”. He also said that the regional financial packages in the 10th EDF (with a budget of €22.7 over six years) had been doubled. This, he said, should provide reassurance to the ACP states about EPAs, “a highly sensitive issue about which everything and anything has been said”. He went on: “EPAs are first and foremost a development process essential to the success of our development policies”. The message was heard. The ACP countries are now waiting for it to be turned into reality so that they can sign without fear. (an)