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Europe Daily Bulletin No. 9427
GENERAL NEWS / (eu) eu/development

Resolve to conclude EPA negotiation by end 2007 - transitional periods may be envisaged where necessary for ACP bananas' access to European market

Brussels, 15/05/2007 (Agence Europe) - The development cooperation ministers of the EU27, who met under the chairmanship of Heidemarie Wieczorek-Zeul of Germany, confirmed in Brussels on 15 May that the EU was determined to conclude, within the time set, the economic partnership agreement (EPA) negotiations with the six regional ACP (African/Caribbean/Pacific) groups so that the EPAs may take effect on 1 January 2008. They also confirmed that the EPAs, drawn up to be compatible with WTO rules, are development instruments to foster regional integration, facilitate market access for ACP states, encourage sustainable development and contribute to the eradication of poverty in ACP states. These affirmations, which were taken up in the unanimous Council conclusions, went without saying for all delegations. It was more difficult, however, to reach an agreement on the content of the commercial offer made by Commissioner Peter Mandelson to ensure that all ACP partners (whether LDC, least developed countries, or not) may benefit from an initiative similar to the Everything but Arms initiative for access by their products to the European market as of 1 January 2008. This did not prove an insurmountable task, as the final agreement proved.

The delegations that opposed the European Commission's offer (Cyprus, France, Portugal and Spain) because they wanted to add bananas to the very sensitive farm products (rice and sugar) that will, when it comes to access to the European market, be initially excluded from the duty- and quota-free regime, were able to waive their reserve once they had the guarantee that developments in talks being held in various meetings on bananas, will be taken into account before the EPAs are signed.

“After the informal Council in Petersberg in March, attended by ACP ministers, we have today showed that the fight against poverty and the continuation of sustainable development are at the heart of the approach. It is not a matter for the EU to promote the opening of ACP markets but, on the contrary, to open up the European market to ACP products. This is a signal to be sent to NGOs”, Ms Wieczoreck-Zeul told the press, delighted that the Council had confirmed the EU's wish to allocate €2 billion each year for aid to trade in favour of developing countries, as of 2010.

It will be possible to make use of these funds, combined with the resources of the EDF and other instruments managed by the World bank and the African Development Bank, on the ground,” she said, noting that the EU aid for trade strategy, the principles of which have been endorsed by Development Ministers, will be formally approved in the autumn of 2007.

Commissioner Olli Rehn saw in the Council conclusions “a very positive signal to our ACP partners in this crucial stage of the negotiations because it shows that EU member states are taking steps so that the negotiations can finish on time”. Speaking about the treatment of sensitive products, he hailed the “great sense of responsibility” shown by delegations, and the efforts of the German presidency to find an agreement. “It is very important ahead of the next joint ACP-EU Council on 25 May,” he added.

The agreed text stipulates that there will be transition periods for a limited number of very sensitive products (until 2015 for sugar; the transition period for rice has yet to be decided: Ed.), and that, for bananas, EU commitments to the outermost regions and also the development of on-going trade issues (WTO panels, Doha Round negotiations and negotiations with Central America/the Andean Community) will be taken into account. To this end, the European Commission will, before the end of negotiations, bring forward an evaluation and, if necessary, submit relevant proposals in order to ensure adequate treatment is provided. Given the urgency and the need to come to a conclusion (exemption from WTO rules for the current system of unilateral trade preferences offered to the ACP countries expires on 1 January 2008, the Commission had no other choice than to delay, and the delegations to show willpower.

Before adopting these conclusions, Commissioner Peter Mandelson pointed out to ministers that there would not be reciprocal opening of markets between the ACP countries and the EU, and that the timetable for trade liberalisation would be asymmetrical, with the ACP countries able to count on safeguard clauses to protect their most sensitive products, and transition periods of up to 25 years. (an)

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