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DRAFTSUMMARY RECORD OF THE 65th SESSION OFTHE ACP COUNCIL OF MINISTERSHELD FROM 21 TO 23 APRIL 1997AT ACP HOUSE, BRUSSELSAND IN LUXEMBOURGACP/25/011/97 Rev.1 Brussels, 13 October 1997AMS/sac Or: English |
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TABLE OF CONTENTS
OPENING CEREMONY
COUNCIL'S PROCEEDINGS
1. Adoption of the agenda
2. Communication from the President
3. Appointment of a Rapporteur and Friends of the Rapporteur
4. Approval of the Rapporteur's Report of the 64th session of the ACP Council held in Brussels from 13 to 15 November 1996
5. Consideration of the Committee of Ambassadors' Activity Report to the 65th Session ACP-EU Cooperation Intra-ACP and Regional Cooperation Internal matters
6. Consideration of the Ministerial Committees' reports
7. Preparation for the 22nd ACP-EU Ministerial meeting
8. Status of ratification of the Agreement amending the 4th ACP-EU Lomé Convention
9. Preparation for the ACP Summit
10. Consideration of the revised text of the ACP Secretariat's Staff Regulations
11. Matters relating to the 24th session of the Joint Assembly
12. Appointment of the Members of the new Ministerial Bureau
13. Outcome of the 65th session of the ACP Council : adoption of draft decisions and resolutions
14. Date and venue of
15. Any other business.
OPENING CEREMONY
The opening ceremony of the 65th session of the ACP Council of Ministers was presided over by its President-in-Office, Hon. Major-General Sitiveni L. RABUKA, OBE (Mil) Ost.J. MSD, Prime Minister and Minister for Fijian Affairs of Fiji.
Before making his opening remarks, the President welcomed the high-powered delegation of the Republic of South Africa, whose membership of the ACP Group and accession to the Lomé Convention would link that country's future not only with the African continent but also with the wider diaspora reflected in the ACP-EU framework. Its membership of the ACP Group and the ACP-EU Lomé Convention countries could be a medium for its contribution to international cooperation.
Turning to the subject of implementation of phase II of the 4th Lomé Convention, the President observed that the ACP Group had not been able to muster ratification by the two-thirds of its memberships required for the effective ratification of the said Convention. After referring to the implications for the delay in ratification, he called on all those countries that had not ratified to expedite the process.
Pursuing his remarks, the President, referring to the perpetual issue of the financial situation of the ACP General Secretariat, appealed to the ACP countries to make good their payment of contributions so as to enable the Secretariat to operate smoothly and effectively.
On the question of ACP indebtedness, the President recalled the debt-relief initiative for heavily-indebted States by the World Bank and the International Monetary Fund. He added that within the framework of that initiative, the EU Commission adopted a proposal under which it committed 100 million Ecus over the period 1997 - 2000, to financing Structural Adjustment Support measures, commercial debt repurchases and debt management for ACP States. He expressed the sincere appreciation of the ACP Group to the EU Council for that very important initiative.
With respect to the situation in the Great Lakes area, the President expressed the hope that Council would be able to send a strong message of support to those parties involved in the negotiations for a peaceful political settlement.
The President recalled that the ACP Group was at a crossroad and the appropriate path forward would be to effectively use its strength in numbers to safeguard its interests in the wider global fora, including the WTO, from where challenges were emerging regarding the preferences contained in the Lomé arrangements.
Finally, the President called on the participants to reserve their greatest efforts for deliberations on matters pertaining to the future of ACP-EU relations and the first ever ACP Summit.
COUNCIL'S PROCEEDINGS
1. Adoption of the agenda [ACP/25/010/97 Rev.4]
The draft agenda as set out in document ACP/25/010/97 Rev.4 was adopted.
Having adopted the draft agenda, Council observed a minute's silence in memory of the distinguished personalities listed below who had passed away since the 64th session:
- H.E. Dr Cheddi JAGAN, President of Guyana;
- Mr Michael MANLEY, former Prime Minister of Jamaica;
- Mr Milton CATO, former Prime Minister of St Vincent and the Grenadines
- Hon. Danielle de St JORRE, Minister of Foreign Affairs of Seychelles.
In observing a minute's silence in their memory, Council acknowledged their achievements and the outstanding role that they had played in both national and international arenas.
2. Communication from the President.
The President mentioned the items listed below in his communication :
i) Address by H.E. President Yoweri MUSEVENI, Head of State of Uganda: The President announced that the Head of State of Uganda, H.E. Mr Yoweri MUSEVENI, would address joint Council at 11.30 a.m on Thursday 24 April 1997 in Luxembourg, that is before the official opening of the 22nd session of the ACP-EU Council of Ministers at noon.
ii) Visit to ACP House of a high level UNDP Delegation : The President informed Council that a high-level UNDP delegation, on a briefing mission to the EU, would address Ministers the following day, 22nd April 1997, at 4 p.m. on current and proposed UN initiatives on issues relating to Governance and Conflict Resolution.
iii) Lead speakers on the 'C' items of the joint Council agenda at the ACP and ACP-EU Ministerial sessions : The President indicated that at its meeting held earlier, the Bureau had considered the question of the selection of ACP lead speakers on the 'C' items and the procedure to be adopted for the discussion of the said items. The Bureau agreed to propose as follows :
- each ACP region should designate a lead speaker for each of the 2 items;
- all 6 lead speakers should take the floor before the other ACP speakers.
Council endorsed the proposal and requested the regions to proceed with their internal consultations with a view to designating the lead speakers.
iv) Venue of the 23rd session of the ACP-EU Council of Ministers to be held in 1998 : The President indicated that the Ministerial Bureau had unanimously agreed to propose that Barbados host the 23rd session of the ACP-EU Council of Ministers to be held in 1998.
Council adopted the Bureau's proposal.
v) ACP President's participation in the 24th session of the ACP-EU Joint Assembly : The President further informed Council that he had attended the 24th session of the ACP-EU Joint Assembly held in Brussels from 17 to 20 March 1997 and on that occasion he made a statement on behalf of Council. In his statement he had conveyed mainly ACP views and concerns on topical issues.
vi) Replacement of the ACP President on the second day of the joint Council session in Luxembourg : The President announced that owing to a prior commitment, he would not be available to chair the joint Ministerial session in Luxembourg on 25 April 1997. He added that following due consultations, it had been agreed that the Hon. Minister from Botswana, member of the Council Bureau, would step in for the President. The President thanked Hon. Lt Gen M.S. MERAFHE, Minister for Foreign Affairs of Botswana for kindly accepting to replace him.
vii) CDI Exhibition in the main hall of ACP House : Finally, the President told Council that delegates were cordially invited to view an exhibition mounted by the Centre for the Development of Industry (CDI), in the main hall of the ACP House, on the production of compressed earth blocks, a construction material being increasingly utilised in many ACP countries.
Council took note of the President's communication.
3. Appointment of a Rapporteur and Friends of the Rapporteur
In accordance with the rules of rotation among regions which guide the choice of a rapporteur when an ACP Council session is held at Headquarters, the responsible region - in this case Southern Africa - was required to nominate a Rapporteur. Consequently, ZAMBIA, the region's nominee, was appointed Rapporteur for the 65th session of Council.
The countries listed below were designated by their regions to serve as Friends of the Rapporteur :
Central Africa : Chad
East Africa : Madagascar
West Africa : Burkina Faso
Caribbean : Grenada
Pacific : Fiji
4. Approval of the Rapporteur's Report of the 64th session of the ACP Council held in Brussels from 13 to 15 November 1996 [ACP/25/003/97]
Introducing the report, the Rapporteur, Hon. Francis J. SAEMALA, Deputy Prime Minister and Minister for Planning and National Development of Solomon Islands, indicated that the Secretariat had prepared the first draft which was considered by the representative of the Rapporteur and his Friends. The outcome of their consideration was seen by the Committee of Ambassadors. Consequently, he was satisfied that the report reflected the deliberations of the 64th session of Council. He thanked all those who participated in producing the report which he commended to Council for adoption.
Council considered and adopted the report with amendments attached as annex I. It commended the Rapporteur and his Friends for having produced a good report.
5. Consideration of the Committee of Ambassadors' Activity Report to the 65th Session [ACP/25/005/97 Rev.2; ACP/84/016/97, ACP/45/014/97 Rev.1 and ACP/28/022/97 Rev.1]
In accordance with Article 13 of the Georgetown Agreement, the Chairman-in-Office of the Committee of Ambassadors, H.E. L.L. CUMBERBATCH, Ambassador of Trinidad and Tobago, presented the activity report of the Committee of Ambassadors, highlighting the outstanding issues which required further guidance from Council and, in particular, making a comprehensive report on the Committee's reflections regarding the future of ACP-EU relations.
Following that presentation, Council held an exchange of views on a number of matters as summarised below :
PART 1 : ACP-EU COOPERATION
A. : TRADE COOPERATION
Developments in the World Trade Organisation (WTO): The WTO Ministerial Conference held in December last in Singapore adopted a Declaration which covered a number of issues of interest for the ACP Group. They included :
Regional Agreements : In addition to the need for the ACP to monitor the activities of the Committee on Regional Agreements set up to examine the compatibility and conformity of regional agreements with WTO, Council urged that the ACP and the EU together should organise themselves in a manner to influence the decision and rule-making process in that Committee.
In that regard, the ACP should develop a strategy aimed at paving the way within the WTO Committee for the adoption of rules and their interpretations that would enable the future ACP-EU trade regime to be acceptable to the WTO without recourse to a waiver clause which might weaken ACP-EU cooperation.
The Committee of Ambassadors was further requested to consider and make proposals on the question of an ACP presence in Geneva.
Rum : Council was informed that during the December 1996 WTO Ministerial Conference in Singapore, the EU and the USA, in the context of bilateral discussions on the Information Technology Agreement, had entered into negotiations to eliminate tariffs on white spirits, including rum, by the year 2000. The EU had not held any prior consultations with the ACP Group or shown an indication of its intention to eliminate the tariffs.
However, following an exchange of letters between the relevant authorities in the Commission and Ambassadors of ACP rum producing countries and a series of meetings with officials of the Commission, formal consultations were held. As a result of ACP pressure, the proposed Memorandum of Understanding between the EU and the USA on the marketing of rum was eventually amended to provide for ACP concerns. The EU further gave assurances that future negotiations and arrangements related to the rum sector would take full account of the likely impact on ACP exports of rum to the EU.
Having noted the above developments and expressed appreciation at the efforts of the DG VIII to meet ACP concerns, Council :
- called on the Community to fully respect both the letter and spirit of Article 12 of the Amended Lomé Convention;
- deplored the erosion of ACP preferences occasioned by the EU's unilateral change in the Status of access to its market for ACP rums even before the abolition of quotas on "traditional" rums, scheduled for January 1, 2000;
- called on the Community to provide assistance to the ACP in promoting and expanding sales of its branded rum in the Community market in accordance with the provisions of Article 4 of Protocol 6 of the Lomé IV Convention.
Coordination of ACP position in the WTO : Council observed that the ACP Group had not developed its own identity within the WTO for purposes of defending its trade interests, a development which would require the establishment of triangular coordination between the ACP capitals and their representatives in Brussels and Geneva.
To that end, Council decided that :
- the Committee of Ambassadors should meet regularly to review and examine WTO issues of relevance to the ACP Group and to formulate a common position which ACP representatives might be requested to adopt within the WTO framework;
- the ACP Ambassadors accredited to the WTO in Geneva should meet with their Brussels counterparts, to examine, coordinate and harmonize their position on issues that might impact on ACP-EU relations;
- all ACP members of the WTO should support the ACP Group's request for observer status in the various WTO bodies;
- the ACP Group should, as a matter of priority, establish the practical modalities to underpin the coordination of the ACP Group within the WTO and the representation in WTO bodies in which the ACP Group would have observer status;
- the Committee of Ambassadors should work assiduously with their colleagues in Geneva to find such modalities;
- the European Commission should be requested to provide the necessary financial support for the implementation of these initiatives;
- the Secretary-General and the Committee of Ambassadors should report to Council regularly on the implementation of this decision.
Rice : Under Trade Cooperation, Council also considered problems affecting ACP rice producing states. In that regard, it was recalled that in January 1997, the EU instituted safeguard measures against exports of OCT rice to the EU and in April it decided to renew those measures. The restriction of OCT exports of rice into the EU had significantly reduced the export earnings of the ACP rice producing states and it adversely affected their economies and posed a direct threat to social and political stability.
Council noted that although the ACP Group was not a direct party in that case, in view of the implications for the ACP countries concerned it called on the EU to :
- ensure that Lomé Convention objectives of promoting trade with the EU and greater cooperation with OCT were achieved;
- consider the implications of the measures already applied on the ACP rice exporting States and the direct impact on the income of rice farmers, and
- discontinue the measures currently in place and enter into urgent consultations with the ACP with a view to reaching a mutually satisfactory solution to the matter.
B. : CUSTOMS COOPERATION
Import of fisheries products with the EU from third countries : Council referred to EU Regulation 91/493/EEC of 22 July 1991 which laid down health conditions for the export to the EU of fishery products, and the Commission Decision No.91/185/CEE valid until 30 June 1997, granting a derogation to ACP States in order to enable them to continue the export of their fishery products to the EU.
ACP fishery exporting countries had been making efforts to meet the norms and standards required but Council recognised that the modernisation of existing canneries and the construction of new ones necessitated heavy capital investment, appropriate technology and adequate lead times.
In view of the above, Council called on the EU and the Commission to consider favourably the ACP request for the extension of the current derogation until the expiry of Lomé IV in February 2000.
C. : INDUSTRIAL COOPERATION
Sysmin : Council was informed that there had been signs of declining interest in Sysmin on the EU side, particularly in the area of disbursement. ACP mining countries were facing difficulties in the appraisal and implementation of Sysmin projects and programmes.
In that regard, Council was requested to bring its influence to bear on the EU Council of Ministers so that solutions could be found to those difficulties which hampered the efficiency of the system and risked compromising the future of Sysmin.
Given that Sysmin did not feature on the agenda of joint Council, the ACP President was mandated to make informal contact with the EU Presidency in order to explain the difficulties faced by the ACP mining sector which is called to play an important role in the diversification of ACP economies
D. : LEAST DEVELOPED COUNTRIES
Council advised that the Committee of Ambassadors thoroughly examine the comprehensive and integrated Plan of Action for the LDCs adopted by the WTO Ministerial Conference in Singapore as its provisions might impact on the ACP countries and perhaps set the ground for the conclusion of a future ACP-EU trade regime that might be acceptable to the WTO as an exemption to its rules. The ACP Group should also start working towards the 1998 WTO Conference to be held in Geneva.
In the context of the Lomé arrangements, there is a need also to develop integrated programmes encompassing both LDCs and their more advanced immediate neighbours with better economic performance. The exclusion of the more advanced neighbouring countries from such programmes, particularly in cases where they are transit countries vis-à-vis the landlocked States, impacts negatively on the programmes.
Council also stressed the specificity of the island states : small and scattered domestic markets that are vulnerable to (annual) natural tropical disasters, including prolonged draughts followed sometimes by tropical heavy rainfall. Council emphasised the need to specifically address those problems by, among others, devising other graduation criteria and providing assistance for water resources management and the fight against poverty.
E. : REPUBLIC OF SOUTH AFRICA
Protocol on the Republic of South Africa's qualified accession to the Lomé Convention : Council approved the Protocol on the Republic of South Africa's qualified accession to the 4th Lomé Convention and agreed to urge the EU at joint Council session to accept to delete the reference to an "ad hoc basis" in the cumulation provisions between South Africa and the ACP States.
The Republic of South Africa's accession to the Georgetown Agreement : Consequent to the Republic of South Africa's qualified accession to the Fourth Lomé Convention, as modified by the Agreement signed in Mauritius and bearing in mind Article 22 of the Georgetown Agreement, Council :
a) approved by acclamation the Republic of South Africa's request for accession to the Georgetown Agreement and decided that the new Member State would consequently assume all rights and obligations arising from the Agreement.
b) mandated the Committee of Ambassadors to ascertain the obligations, particularly the financial contributions to the budget of the Secretariat, arising from that accession and inform the Republic of South Africa thereof, and
c) requested the Committee of Ambassadors to report on the execution of that mandate at Council's next session.
Following the above historic decision, Ambassador Elias LINKS of the Republic of South Africa, made a statement on behalf of his country which is attached as annex II.
F. : SOMALIA
Implementation of the Convention in favour of Somalia : Reporting on the above subject, H.E. Mr Peter Gabriel ROBLEH, Ambassador of Ethiopia and Chairman of the ad hoc Committee on Somalia, indicated that following the adoption of a resolution by the ACP-EU Council of Ministers in Apia, Samoa in 1996, the ad hoc Committee held discussions with the Commission on its initiatives on Somalia.
The Commission had accepted the political adherence of Somalia to the Convention and was seeking modalities to establish an independent chamber of commerce for Somali trade operators, particularly the revival of the banana sector, so that Somalia could benefit from the EU market by signing its own certificate of origin. The Commission intended to maintain the Somalia Unit in Nairobi and would seek to put Somalia on the priority agenda of the Community budget to access humanitarian aid.
In its exchange of views, Council welcomed the intention of the IGAD Member States and of the Commission to include Somalia in future regional projects. Council also adopted a resolution urging, inter alia, all Somali political groups to continue to sustain the spirit of the SODERE Agreement.
PART II : INTRA-ACP AND REGIONAL COOPERATION
Council took note of this section
PART III : INTERNAL MATTERS
A. FINANCIAL MATTERS
Financial situation of the Secretariat : Having heard a detailed report on the state of contributions and arrears accumulated, showing a precarious financial situation, Council appealed to the countries in arrears with their contributions to fulfill their financial obligations towards the Secretariat. It also instructed the Committee of Ambassadors to pursue the application of sanctions. Further, it commended the countries that had paid up their contributions and remained in good standing.
Rwanda's 1997 contribution[ACP/45/014/97 Rev.1] : Council heard a declaration by the Head of Delegation of Rwanda on the precarious economic situation that still prevailed in that country and the request by its authorities for the cancellation of its 1997 contribution to the budget of the Secretariat.
Having taken note that Rwanda had paid its outstanding arrears of contribution for 1994 and of the recommendation by the Committee of Ambassadors set out in the document captioned above, Council waived the interest on the arrears of contribution owed by Rwanda as at 31st March 1997 and the payment of its 1997 contribution.
Contributions owed by Equatorial Guinea : In considering this item, Council noted the request by Equatorial Guinea to waive the interest charged from 1st January 1997 and it recalled the undertaking which that country made in Apia, Samoa in 1996, to fulfill its obligations towards the Secretariat's budget as per Council decision No.2/LXIII/96.
In view of the fact that Equatorial Guinea had honoured its undertaking, according to the approved payment schedule, covering the sums due for 1996 and 1997 and it had further undertaken to pay its 1997 contribution before the end of the year, Council waived the interest on arrears of contribution calculated as from 1st January 1997. Council also exempted Equatorial Guinea from the application of sanctions as approved in 1996 and urged the country to fulfill its future financial obligations on time.
Council commended the Committee of Ambassadors for presenting a comprehensive activity report.
6. Consideration of the Ministerial Committees' reports on :
a) COMMODITIES [ACP/67/018/97]
In the absence of the Chairman of the Ministerial Committee on Commodities, the report was presented by the Chairman of the subcommittee on Commodities, Ambassadorial level, H.E. Mr Saloum KANDE, Ambassador of Senegal. He indicated that two major subjects were treated :
i) Recent developments relating to international cooperation in the area of Commodities : He recalled that the EU had adopted a draft Directive on 17 April 1996 replacing that of 24 July 1973 enabling the EU Member States to use, with discretion, vegetable fats other than cocoa butter in the manufacture of chocolate for up to 5% of the weight of the finished "chocolate" product. That decision aimed at reconciling the principle of subsidiarity with free movement.
For their part, the ACP reiterated its position as set out at the ACP-EU Council session in Mauritius, namely :
- that the draft directive should be adopted only after internationally-recognized technical methods of detection and quantification had been established;
- that if, exceptionally, the said methods were established, a differentiation should be made between the designations, "Pure chocolate" and "Chocolate with CBE(1)";
- that the labelling system which was not yet satisfactory should be made more legible to enable the consumers to know the composition of all ingredients, including vegetable fats other than cocoa butter, in the finished product.
With regard to shea butter-producing countries, the ACP strongly recommended that all the Convention's cooperation instruments be implemented so as to enable those countries to benefit fully from the above measures whenever applied. It should stress at the joint session the need to take into account all ACP concerns before a decision was adopted regarding the chocolate question.
Council also urged that the Secretariat participate regularly in the meetings of the Common Fund for Commodities so that the ACP Group was kept current on issues affecting commodities.
ii) Follow-up to the Midrand Declaration [9th UNCTAD Session]
The 9th UNCTAD had decided that states should be assisted to play a major role in the processing of their commodities. The ACP also reiterated its position that the resources of the first account of the Fund be lent to the second for financing development measures and that its net resources be transferred to the second account.
It was agreed that a common strategy should be devised for the implementation of Articles 72 and 73 (regarding processing, marketing, distribution, transport and the improvement of the competitiveness of ACP commodities) in line with the recommendation of the ACP-EU Committee of Ambassadors. The Committee of Ambassadors recommended that emphasis should be laid on UNCTAD's action in the areas of special interest to the least developed and ACP countries.
At the joint Council session in Luxembourg, the ACP should stress the fact that in spite of the implementation of macro-economic reforms aimed at attracting foreign direct investment, such investment, especially European investment, was still rare. It was agreed that the Committee of Ambassadors would undertake a publicity campaign in Europe.
b) BANANAS
The report from the ACP Ministerial Consultations on Bananas presented by its spokesman, Hon. N.M. CHARLES, Minister of Trade and Marketing of the Commonwealth of Dominica, covered the following subjects :
i) Findings of the WTO Dispute Settlement Panel on the compatibility of the EU banana regime with WTO rules
The Spokesman reported that the Panel, in its interim report, had ruled that the EU banana regime and the Framework Agreement violated the General Agreement on Tariffs and Trade, the General Agreement on Trade Services and the Agreement on Import Licensing procedures. It had, however, accepted the validity of the Lomé preferences safeguarded by the waiver but opposed the allocation of quotas to the ACP suppliers in excess of their highest export levels before 1991.
The main beneficiaries of the WTO ruling would be the large multinational companies. The small ACP producers would be forced out of the market. In view of that likelihood, the Ministers agreed on a strategic plan both at the political and technical levels.
At the political level, the Ministers decided that lobbying missions should be undertaken at the highest level with EU partners to urge them to honour their commitments to the Banana Regime. At joint Council session, the ACP should send out a strong message to impress upon the EU Member States the importance of the Banana trade to the ACP.
At the technical level, the Ministers decided to urge the EU Commission to appeal against the ruling. ACP countries should support the Commission by engaging appropriate legal advice to assist the Secretariat. The Committee of Ambassadors should liaise with the Secretariat on the recruitment of lawyers.
ii) Amendments to Regulation 404/93 : Ministers were updated on the developments regarding the Commission's proposal to amend the regulation governing the banana Regime, Regulation 404/93, with a view to alleviating the problems experienced with the marketing of bananas as a result of certain deficiencies in the regulation.
iii) Public relations programme : Ministers noted the action being taken by the Working Group on Public Relations activities and that the Commission had expressed its interest in assisting the ACP in that exercise.
iv) Income support : Ministers welcomed the decision of the Commission to extend the life of the regulation to December 1996 in order to enable the ACP to benefit from the resources for the 1995 year of application.
v) Market situation : Ministers expressed concern that as a result of an increase in the tariff quota for "dollar" bananas in excess of demand, prices had fallen to unprecedented levels resulting in undue hardship for ACP farmers.
vi) Ad Hoc Committee : Ministers were informed of the Commission's proposal to establish an Ad Hoc Committee as a consultative body to the Management Committee which is responsible for the implementation of the Banana Regime.
vii) FAO Committee on Commodity Problems : Ministers were informed that the Fifteenth Session of the Intergovernmental Group on Bananas under the Committee on Commodity Problems was scheduled to be held at the FAO headquarters in Rome from 7 - 9 May 1997. Ministers urged that the ACP Banana producing States participate actively in the proceedings.
In conclusion, the spokesman warned that the future of preferential access for ACP bananas was under serious threat and would have implications for the overall preferential trading agreements. He therefore urged his colleagues to fully support the Banana-producing countries in defence of the banana regime and Lomé preferences in general.
c) SUGAR
The report by the Ministerial Spokesman on Sugar, Hon. A. BOOLELL, Minister of Agriculture and Natural Resources of Mauritius, covered the following matters :
i) WTO Ministerial Conference : Ministers agreed that the ACP should endeavour to prepare a common strategy to enable them to fully utilise the process of analysis and information exchange that would take place in WTO between 1997 and 1999. The ACP Group should also forge additional strategic alliances and ensure adequate and timely coordination between and within Brussels and Geneva.
ii) Guaranteed Price Negotiations : 1996/97 Delivery Period : Ministers took note of the conclusions of the guaranteed price negotiations for the 1996/97 delivery period which fixed the price at the same level as that of the preceding period. They endorsed the statement made by the ACP on that occasion namely that they were concerned about the prolonged price freeze and the resulting negative impact on sugar export earnings.
iii) Guaranteed Price Negotiations : 1997/98 Delivery Period : Ministers noted that the Commission had not yet made a price offer for the above delivery period and that once more recourse would have to be had to the "stop the clock" procedure.
iv) Special Preferential Sugar Agreement (SPS) : Ministers took note of the successful implementation of the SPS Agreement.
v) Sugar within the context of a changing world trade environment : Ministers made reference to the forthcoming submission of an analytical background document covering a broad spectrum of relevant points. They observed that in ACP countries where sugar was considered a way of life, any undermining of the Protocol would result in dislocation and disruption.
Some Ministers expressed concern over the statement made at the Maastricht informal Ministerial meeting by Mr RUGGIERO, Director General of UNCTAD, which could be damaging to ACP sugar interests. It was agreed that the spokesman should meet with the Director General in order to convey the ACP views.
vi) South Africa's qualified accession to the Revised Lome IV Convention : Having welcomed the positive developments regarding the above, some Ministers pressed South Africa to make a declaration, similar to the undertaking made by the Dominican Republic when it acceded to the Lomé Convention, to the effect that it would, neither now nor in the future, seek to accede to the Sugar Protocol.
vii) OCT Sugar Exports to the EU : Ministers were informed that progress had been achieved in improving unloading conditions at Thames, but it was acknowledged that transport costs remained high for landlocked countries and island states. Though Ministers agreed to further press the EU to consider favourably the funding of the update of the study, they were also invited to contemplate the possibility of funding it themselves.
viii) Fifth Ministerial Conference on Sugar : Ministers expressed their appreciation to the Government of Fiji which confirmed its offer to host the Conference and they agreed that it should be held prior to the Second WTO Ministerial Conference to be held in December 1998 in Geneva.
ix) Request from Kenya for reinstatement of quota : Ministers took note of the report by the Subcommittee that the Secretariat was liaising with Kenya to prepare a status report.
d) DEVELOPMENT FINANCE
The report presented by the Chairman of the ACP Ministerial Committee on Development Finance, Hon. MOUGOUNGA NKOMBO NGUILA, Minister of Economy, Finance and the Budget, in charge of Planning and Prospection of Congo, covered the following subjects :
i) Adoption of reports and a draft resolution : Ministers considered and adopted the following documents presented by the Chairman of the Subcommittee on Development Finance :
- The Subcommittee's 1996 activity report and its 1997 work programme. With regard to the latter, two major meetings were scheduled : a conference of ACP Finance Ministers on debt to be preceded by a seminar of senior officials responsible for the management of debt and structural adjustment programmes, and a meeting on regional cooperation and integration;
- the report on the 1996 implementation;
- the joint evaluation report;
- the report on ACP-EU regional cooperation; and
- the draft resolution relating to the three points above and a draft ACP-EU oral report to be presented to the 22nd session of the ACP-EU Council session in Luxembourg.
On behalf of the Ministerial Committee on Development Finance Cooperation, the Chairman requested Council to approve the two reports contained in document ACP/81/021/97 as well as the revised draft resolution.
Council approved the documents as requested by the Chairman of the Ministerial Committee on Development Finance Cooperation as well as the other reports submitted by the Ministerial spokesman.
7. Preparation for the 22nd ACP-EU Ministerial meeting
a) Consideration of the draft agenda [ACP/CE 2139 - ACP/21/001/97]
Introducing the draft agenda, the President reported that Council Bureau had agreed to propose that lead speakers be chosen from the various ACP regions at the joint Council session for discussions on 'C' items. Other Ministers could then intervene in the areas of their choice from the items under 'C'.
Regarding the Headquarters Agreement between the Belgium Government and the ACP General Secretariat, the President indicated that the matter had not yet been satisfactorily finalised. It would be taken up at joint Council session in Luxembourg.
Following the above preliminary remarks the countries listed below were designated to be lead speakers :
Conflict Resolution : Congo
Bahamas
Zimbabwe
Nigeria
Fiji
Future of ACP-EU relations : Mauritius
Cameroon
Senegal
Suriname
Vanuatu
Council took note of the draft agenda for the 22nd session of the ACP-EU Council of Ministers.
b) Exchange of views on "C"items
- Conflict resolution and Management
Council suspended its deliberations on the above subject and received on 22nd April 1997 at 4 p.m. a UNDP delegation headed by Mr Trevor GORDON-SUMMERS, senior advisor to the Administrator, UNDP-New York, which delegation came to Brussels for the purpose of briefing on current and proposed UN initiatives on Governance and Conflict Resolution.
The elements listed below constituted the focus of the UNDP presentation on the two subjects. For good governance :
building partnerships through a consensus on the elements of good governance. The most crucial ones being :
- leadership with vision for society;
- broad-based participatory process (civil participation);
- accountability;
- institutional capacity to contain excesses of all arms of Government;
- guaranteed functioning of law, etc...
With regard to conflict resolution :
the parties in conflict must agree to return to peace, in that regard all actors should be identified;
strategic partnership and strategic alliances ought to be built;
the creation of a framework to bring together all resources;
an early warning system to prevent conflicts developing into violent confrontation.
In the exchange of views that ensued, the participants made a linkage in their reflection between the above subject and good governance. The major themes listed below were developed in the discussion :
i) Definition of conflict and good governance : Speakers indicated that the concept of conflict was not well defined by the international community and there was a tendency to narrow it down to open military conflict whereas economic conflict could also be destructive.
Likewise, the concept of good governance does not have a universally accepted definition. Indeed, some speakers contended that in some cases judgement on government is discriminatory as it is based on alien (cultural) values.
However, there was a broad acceptance that conflict could be broadly defined as absence of peace and tranquillity. Good governance is the absence of corruption, the prevalence of transparency and accountability, justice and the rule of law and the proper management of the economy. It was recognised that there was a necessity to establish performance criteria regarding the process of implementation of good governance.
ii) Causes of conflict : It was observed that, apart from the colonial legacy, the underlying causes of conflict in ACP States are mainly internal. Injustice, inequality and lack of representative participation breed conflict situations.
iii) Solutions : It was pointed out that sometimes, the imposition of solutions such as sanctions, are equally destructive.
A necessary precondition for good governance is a deliberate and conscious commitment to building and strengthening democracy and democratic institutions, transparency, accountability and responsiveness in government to basic needs of the people.
There should be also a commitment to integration of minority groups within the mainstream of national life through the encouragement of broad participation of all in the democratic process which takes the form of elections at all levels, and empowerment of local governing authorities. This would neutralise the pressures brought to bear on the weak state structures by powerful interest groups and ensure the respect of the fundamental rights of the people.
With respect to conflict prevention and management, Council was of the view that the obvious steps to take should be implementation of an "early warning system" (or preventive diplomacy) through the creation of a conflict prevention observatory to be seen as an Intra-ACP or ACP-EU institution, financed from the resources of the Convention. That observatory or early warning entity would provide the institutional framework for the airing, negotiation and hopefully peaceful settlement of potential conflicts whatever their nature and origin.
Council also outlined the stages listed below for resolving a (potential) internal or external conflict through dialogue and consultations at the :
- local level (through Wisemen's committees where the culture allows the practice)
- national level
- subregional level
- regional level
- continental level (OAU as a most relevant example), and finally at
- UN level.
At the economic level, Council urged effective preventive measures which would include the proper economic management, improved regional economic integration and free movement of people and goods within geographic areas.
In the event of armed conflict, dialogue and consultation should take into account the following :
- the need to involve all the parties concerned (as it is obvious that the interplay of internal forces determine to a large extent the outcome of a conflict);
- mediation should give support to the internal process and where strategically useful, induce but not impose solutions;
- rehabilitation should be seen to be equitably undertaken and it should target critical areas such as education, health and road infrastructure.
Council also referred to sanctions and stressed that they should be used in cases where there is a manifest unwillingness to engage in constructive dialogue on conflict resolution both at a political and economic level. On such occasions, the effects of the use of EDF resources should not be compromised and the neighbouring states should not suffer from that action.
Finally, subtle preventive action such as the provision of universal primary and secondary education and health care, commitment to the inculcation of a "culture of peace" and the rejection of all forms of intolerance should be assiduously pursued.
- Future of ACP-EU Relations
Council heard a status report from the following regional spokesmen on the subject of the Future of ACP-EU relations :
Southern Africa : BOTSWANA
Central Africa : CAMEROON
Caribbean : BAHAMAS
West Africa : BURKINA FASO
Pacific : VANUATU
Below is a brief summary of the salient points mentioned in the various reports by the regional spokesmen :
SOUTHERN AFRICA : The Ministerial Spokesman for the Southern Africa region, Hon. Lt Gen M.S. MERAFHE, Minister for Foreign Affairs of Botswana indicated that his region was in the process of developing a regional position on the future of ACP-EU relations. He outlined the following points for reflection :
ACP-EU partnership should continue, under a form to be determined in the negotiations;
He observed that the ACP as well as the EU States had benefited from the current and previous cooperation arrangements with the EU, but in future the arrangements should be made more responsive to new ACP needs;
the future agreement should empower the ACP countries to become self-reliant. In that regard, preferences could be useful;
there should be a drive for poverty eradication (not alleviation which simply reduces levels of poverty);
The unity and solidarity of the ACP Group should be maintained and strengthened and the Group should use that strength and solidarity at all relevant fora; and finally
the political and institutional framework should provide for frank and open dialogue between the two cooperation partners along the lines of, for example, the Maastricht conference.
CENTRAL AFRICA : The Honourable Minister from Cameroon, Hon. MELINGUI Roger, Minister in charge of Budget and Ministerial Spokesman for the Central Africa region, prefaced his intervention by stating that although his region had held its consultations, it was still in the process of developing and refining its position. The EU Commission Green Paper had been the basis for reflection by his region. The following is a summary of his exhaustive report :
i) Political approach : The world had gone through changes since the signing of Yaoundé I. The ACP-EU needed political institutions for conducting effective and fruitful political dialogue in an institutionalized framework.
ii) Good Governance : This was not only a question of elections and attracting investment, but also freedom, broad participation of the people in the political and economic life of the state, accountability and transparency.
iii) Attachment to a global approach to the ACP-EU cooperation : The ACP Group represented a moral force, consequently it needed some global mechanisms, but there should be recognition of specificities and varying levels of development.
iv) Regional economic integration : This is a crucial element that should attract great attention in the future cooperation arrangements.
v) Fight against poverty : Generally, development programmes are geared towards the fight against poverty, but ultra liberalism creates new pockets of poverty. So the future agreement should devise an original approach to this problem.
vi) Protection of the environment : There are apparent contradictions between this concept and the requirements of development. Such conflicts need to be recognized and resolved.
vii) Investment and the private sector : The private sector is considered to be the engine of development but because of its low level of development in many ACP countries it is being hampered by globalization and liberalism. One result of this weakness has been privatisation. This process further weakens the state and it could be a source of instability. The ACP countries need programs to promote indigenous entrepreneurship.
viii) Preferences : The region is attached to the idea of maintaining preferences but these should be adapted to the new trends in international trade. There should be a transition period to enable ACP States to adapt to these new trends.
ix) Financial cooperation : The state should be given the means to enable it to function normally. Specifically it should have the capacity to regulate and control, e.g. it should have some measure of control over economic operators. This would restore its credibility.
x) Indebtedness : The mechanisms and programmes for debt relief are not totally satisfactory, as they were designed to ensure the servicing of debt and not empowering the state to implement its development programme. The ACP countries need programmes designed to correct that imbalance in tackling the question of development and indebtedness.
CARIBBEAN : The report on the outcome of the Caribbean regional consultations was presented by that region's Ministerial Spokesman, Hon. Carl BETHEL, Minister of State for Economic Development of the Bahamas. Below is an itemized summary of the salient points of his presentation :
i) ACP-EU Cooperation should continue into the next millennium;
ii) The existence of the ACP Group : The break-up of the ACP Group is unacceptable.
iii) Problems of urbanisation and the existence of pockets of poverty are found in the Caribbean region as elsewhere in the other ACP regions. These constitute cross-region similarities which plead in favour of a single ACP Group;
iv) Technical cooperation : There should be technical cooperation within and between ACP countries;
v) Trade preferences : These should continue to exist wherever possible and there should be assistance to ACP in the process of globalization and trade liberalisation.
vi) Service Sector : Training should be provided in information technology, in foreign languages and knowledge-based information technology systems, so as to enable ACP countries to move towards service-based economies.
vii) Private sector : The process of privatisation is overly simplified by those who wish to prey upon the assets in emerging markets. It has implications for the balance of payments, ownership of assets, etc. It is clear that in that context, the ACP countries need some technical assistance in this area.
viii) Because of their peculiar nature, islands are sensitive about the implications for national security of immigration, international criminal activity, illegal drug trafficking and gun-running. These areas deserve special attention and assistance.
ix) Cultural cooperation : There is still ample room to develop Intra-ACP cultural exchanges and contacts. It is necessary to devise ways to improve inter-cultural contacts within and among ACP States and regions.
WEST AFRICA : Presenting a status report on West Africa's consultations, the region's Ministerial Spokesman, Hon. Tertius ZONGO, Minister in charge of Finance and Economic development of Burkina Faso informed Council that his region would be meeting in a matter of days after Council session. His submission would seek to highlight in broad terms the subjects to be examined by ECOWAS Ministers.
i) Continuation of ACP-EU partnership beyond the year 2000 : The new orientations to be given to the ACP-EU partnership in a future agreement would be economic and political challenges:
a) Economic challenges : There is need to develop and sustain capacity building in ACP countries.
The other areas that should receive priority consideration include health, education and employment.
Fight against poverty : The definition of this concept should include human security in fields of the economy, food, employment and health through access to basic health services like tap water, etc and a secure environment.
Regional integration : This is a sine qua non for any development in the various ACP regions to avoid marginalisation.
Trade and Investment : These are critically essential for development and integration in the global system.
b) Political challenges : The institutional framework, necessary to guarantee accountability, dialogue, political freedom, individual security and wider participation in the political and economic life of the ACP countries should be provided. Reforms have been introduced in a number of ACP countries and they should be consolidated and sustained.
Policy dialogue : This concept should be examined closely with a view to institutionalizing it in ACP-EU cooperation.
ACP solidarity : ACP solidarity should be reinforced without prejudice to the recognition of regional specificities.
PACIFIC : The Ministerial spokesman for the Pacific region, Hon. WILLIE JIMMY, Minister of Foreign Affairs and Immigration of Vanuatu, stressed the following points in his intervention :
i) The continuation of ACP-EU cooperation : This cooperation agreement should be pursued into the next millennium but it should be made more responsive to the new needs of the cooperation partners to their mutual advantage and benefit.
ii) Global environmental change : The Minister referred to the specificity of the Pacific region, its small island states under threat from the Greenhouse effect. They insisted that the subject should be adequately addressed in the context of future ACP-EU relations as it was at the very heart of the survival of some islands.
iii) Regional integration : There should be integrated regional programmes;
iv) Sustainable development should take into account the following sectors :
- fisheries;
- reforestation;
- services, including education, transport and major infrastructures;
- the legal framework of the future ACP-EU relations.
Council took note of the reports from regional Ministerial spokesmen.
8. Status of ratification of the Agreement amending the 4th ACP-EU Lomé Convention [ACP/27/010/97 and ACP/26/020/97 Rev.3]
Introducing the item, the Chairman-in-Office of the Committee of Ambassadors, H.E. Mr L.L. CUMBERBATCH, Ambassador of Trinidad and Tobago, indicated that the Commission had signed broad agreements with many ACP countries. It was necessary for the NAOs to make sure that studies that were required should be implemented expeditiously.
In the exchange of views that followed, it was pointed out that the system of tranching was giving difficulty and in the light of the various experiences and the difficult circumstances facing ACP countries, it should be reviewed. This concern should be conveyed to the EU side at the joint Council meeting.
Council commended the countries that had ratified and welcomed the announcement by a number of countries that they had made significant progress in the ratification process.
It expressed concern with the slow progress made by the EU Member States and requested the Council President to raise the matter at joint Council session in Luxembourg.
9. Preparation for the ACP Summit [ACP/26/020/97 Rev.3]
Introducing the item, H.E. Mr Youssouf OUEDRAOGO, Ambassador of Burkina Faso and Chairman of the Ad Hoc Working Group on the Summit, indicated that following the adoption of the Mauritius Declaration, which called for, inter alia, the organisation of an ACP Summit, the Committee of Ambassadors set up the following structures to prepare the background documents for the Summit :
- the Ad Hoc Working Group : entrusted with the preparation of the declaration to be adopted by the Summit, and other practical arrangements
- the Subcommittee on Future ACP-EU relations : entrusted with the task of preparing a document on ACP-EU relations beyond the year 2000.
The document being proposed was the outcome of preliminary discussions and it sought to provide elements for further reflection.
Following the presentation referred to above, Council held a preliminary exchange of views on the various subjects submitted.
a) Exchange of views on the provisional draft agenda
Council considered and took note of the provisional draft agenda.
b) Exchange of views on the elements for the draft declaration
Council proposed the following additional elements for inclusion in the draft declaration :
- the Development agenda of the UN
- reform of international institutions
- environment, and
- illegal drug trafficking
c) Other matters including organisational matters
Council expressed concern regarding the length of the opening session and requested that it be looked at again.
It further requested that provision be made for a meeting of a technical group to look at the documents before the joint meeting of ACP Ministers and Ministers of Foreign Affairs.
10. Consideration of the revised text of the ACP Secretariat's Staff Regulations [ACP/41/025/96 Rev.30]
Introducing the item, the Chairman of the Committee of Ambassadors recalled that the issue of the revision of the Staff Regulations had been examined once by the Committee of Ambassadors which then submitted its recommendations to the 63rd session of the Council of Ministers held in Apia, Samoa, from 24 to 26 June 1996.
Having been unable to reach a consensus on this issue, the Council of Ministers, through Decision No.1/LXIII/96, asked the Committee of Ambassadors to re-examine the document. The Committee of Ambassadors then re-examined the proposals and, after having made enquiries about the practice and experience of similar international organisations, agreed to recommend for adoption by Council, the revised text being presented.
After a detailed examination of the proposals by the Committee, Council adopted the revised text with some amendments.
Regarding the issue affecting a member of staff, raised by the Minister from Benin, Council requested the Secretary General to resolve the matter internally.
11. Matters relating to the 24th session of the Joint Assembly
Council had looked at and taken note of this item in the context of the consideration of the Committee of Ambassadors' activity report to the Ministers.
12. Appointment of the Members of the new Ministerial Bureau [ACP/549/79 Rev.30]
The countries listed below were designated by their respective regions to serve on the new Ministerial Bureau :
Southern Africa : ZIMBABWE President
Central Africa : BURUNDI Member
East Africa : SUDAN Member
West Africa : GUINEA Member
Caribbean : HAITI Member
Pacific : SAMOA Member
The President-in-Office congratulated Zimbabwe for its election to the post of President of Council for the next mandate and wished the new Bureau every success.
For his part, the Minister from Zimbabwe, Hon. O. MPOFU, Deputy-Minister of Industry and Commerce, expressed appreciation of the region of Southern Africa for having been honoured by this appointment. The Minister gave the assurance that he would strive to live up to the ACP Group's expectations during the period leading to the Libreville ACP Summit.
13. Outcome of the 65th session of the ACP Council : adoption of draft decisions and resolutions
Council considered and adopted the following decisions and resolutions during its sitting in Brussels :
DECISIONS
No.1/LXV/97 : Accession of the Republic of South Africa to the Georgetown Agreement
No.2/LXV/97 : Revision of the Staff Regulations
No.3/LXV/97 : Rwanda's 1997 contribution
No.4/LXV/97 : Contributions owed by Equatorial Guinea
No.5/LXV/97 : Coordination of ACP position in the World Trade Organisation
RESOLUTIONS
Council adopted the draft resolutions listed hereunder during its sitting in Luxembourg on 24 April 1997 under the Presidency of Hon. Lt Gen. M.S. MERAFHE, Minister for Foreign Affairs of Botswana.
No.1/LXV/97 : Import of fisheries products into the EU from third countries
No.2/LXV/97 : Rice
No.3/LXV/97 : Somalia
No.4/LXV/97 : Bananas
No.5/LXV/97 : Sugar
14. Date and venue of :
a) the 66th ACP session
b) the 23rd ACP-EU session
The 66th ACP Council session would take place on 3rd and 4th November 1997 in Libreville, Gabon.
The 23rd ACP-EU Ministerial Council session would take place in Bridgetown, Barbados at a mutually agreed date between the host country and the ACP-EU Presidency.
Taking the floor, H.E. Mr Michael.I. KING of Barbados and Head of delegation, expressed gratitude on behalf of his Government to Council for accepting Barbados' offer to host the 67th ACP Council session and the 23rd session of the ACP-EU Council of Ministers.
He indicated that the Deputy Prime Minister of Barbados, Mrs Billie MILLER, was unable to be present at the Council session and had sent her regrets through the President of Council.
In offering to host those sessions, Barbados continued to demonstrate its serious commitment to working vigorously with all ACP countries in order to ensure that the ACP Group enter negotiations with the EU for a successor agreement to Lomé IV with a united voice.
It was the intention of the Government of Barbados to guarantee all delegates a taste of true Barbadian hospitality. Participants would be invited to observe a small island functioning in the context of the challenges of globalization.
15. Any other business.
There being no other business, the President thanked all delegations for their kind cooperation and useful contributions to Council's deliberations. He commended the Committee of Ambassadors for having prepared Council's session and the Secretary General and his team for providing technical support and servicing the session. He paid special tribute to the language and ancillary staff.
Finally, the President wished all delegates a safe return to their respective destinations.
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ANNEX I
Amendments to the summary record of the 64th session of ACP Council of Ministers.
1. On page 20, the paragraph after the indents which starts with "The President's introductory remarks" now reads :
"The President's introductory remarks were followed by an informal exchange of views by Council during which it was observed that there was a need to adopt a pro-active approach to the negotiations without any pre-conceived ideas".
2. On page 25, under Preferences, we insert a new sentence after the sentence ending "from those preferential arrangements".
The new sentence reads :
"The view was expressed that caution be exercised in dealing with the question of the maintenance of trade preferences as well as the need to counter the argument that preferences have become irrelevant".
In the sentence that follows cancel "consequently there was a question about". The sentence now starts as "The view was also expressed on the need" the rest of the sentence remains unchanged.
3. On page 29, b Summit : Insert after the second paragraph the following addition:
"In view of the imminent publication of the Commission's Green paper, Council decided to issue a press communiqué on its deliberations on the subject at the end of the discussions. A copy of the press communiqué is attached as Annex I"
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