At a press conference at ACP House, Brussels on 29 March 2006, Federico Alberto Cuello Camilo, Chairman of the ACP Committee of Ambassadors and Ambassador of the Dominican Republic, recalled that "development must be in the forefront of discussions on EPAs." Referring to the Cotonou Agreement, he stated that the EPAs must ensure that the ACP countries are gradually integrated into the multilateral trading system. Ambassador Cuello Camilo also expressed the ACP Group's concerns over the conclusions of the Doha Round, given that little progress has been achieved so far, especially after the WTO Meeting in Hong Kong. Regarding the 10^th EDF, the Chairman announced that a financial protocol would be agreed at the upcoming ACP-EU Council of Ministers meeting to be held in Port Moresby, PNG in June 2006.

The EPA negotiations, currently in the second phase, are on-going at the regional level. The ACP and the EU have agreed that the EPAs must be instruments of development that build on and foster regional integration with a view to ensuring that the ACP States are gradually integrated into the multilateral trading system. "For the ACP Group, therefore, development must be in the forefront of discussions that take place regarding the EPAs." However, WTO compatibility requires that future trading arrangements between the ACP and the EU be addressed in the context of global trading rules, which means that the ACP should reciprocate tariff reductions, albeit in an asymmetric manner, with the European Union. This requirement has raised concerns about adjustment costs that are inevitable as the ACP States shift from import tariffs to other forms of taxation such as value added tax (VAT). The ACP and the EU are continuing discussion on these matters, mainly at the regional level. The year 2006 is crucial for the ACP because a comprehensive review of the negotiations will take place to ensure that no more time is necessary for concluding the negotiations, and that the new trading arrangements can be in place by 1 January 2008.

Regarding the WTO Ministerial Conference in Hong Kong, Ambassador Cuello Camilo said that "the outcome of that meeting was, to say the least, quite modest." Indeed, a Herculean task faces all the ACP Member States as the timelines adopted require that the modalities for concluding the Doha Round be agreed by 30 April 2006. [1]   The Geneva- and Brussels-based ACP Ambassadors met at ACP House on 6 March 2006 to take stock of the situation and to strategize on the way forward. They noted with apprehension that the Doha development promise may not be realized as the developed countries and the more advanced developing countries continued to horse-trade at the expense of the interests and concerns of the ACP Group and other developing countries.[2]

The Chairman of the Committee of Ambassadors stated that the ACP Group would remain engaged in the negotiations and would ensure that the negotiations of issues such as Agriculture and NAMA tariffs and subsidy reductions, as well as services, take into account the peculiar development circumstances of the ACP States by providing them with effective and operational, special and differential treatment. Furthermore, the needs of LDCs, small vulnerable economies, islands and landlocked countries must all be adequately addressed. In this regard, the Chairman was adamant when he stated that "the proposed aid-for-trade scheme is of great interest to the Group, though this does not mean at the expense of a favorable conclusion of the Doha Round for the ACP countries."

In the area of development finance cooperation, it is expected that a financial protocol will be agreed at the joint ACP-EU Council of Ministers meeting scheduled to be held in Port Moresby, Papua New Guinea, in early June this year. Indeed, the ACP and the EU have embarked on the preparation for programming the 10^th EDF. Seminars to discuss programming guidelines will soon be completed in all six ACP regions.

Speaking on behalf of the ACP countries, Ambassador Cuello Camilo welcomed the recent announcement that the EU would nearly double its development assistance to developing countries in the coming years. However, he expressed great concern over the slow disbursement of resources under the 9^th EDF, due to complex and cumbersome procedures. He added that the ACP was engaged in talks with the EU to see how these problems could be overcome. Furthermore, there is major concern about how the new programming will cater for the financing needs to be identified following the transition to a reciprocal trading arrangement in the context of the EPAs.

As the above and other developments unfold, the ACP has decided to undertake the task of redefining its mission in the future. To this end, a one-day workshop on the future of the ACP Group has been organized for the Brussels-based ACP Ambassadors and is scheduled to be held on 7 April 2006.

The need to redefine the role of the ACP Group on the international scene in order to pursue its development objectives was occasioned by a number of reasons. While the European Union remains a major and important partner for the ACP Group, it is essential that the ACP determines its position in relation to an expanding EU. In addition, the multilateral trading system continues to set global trade policies that are eroding the preferential margins enjoyed by the ACP. Furthermore, new emerging economies are now influencing and determining policy orientation, just as the United Nations is embarking on the implementation of a reform process that will change the structure of the international power play.

The ACP Group will hold the 5^th Summit of ACP Heads of State and Government in Khartoum, Sudan in December 2006. It is expected that the ACP Leaders will give due consideration to and provide orientation on the future of the ACP Group.