ACP PRESS RELEASE

 

ADDIS ABABA    17 FEBRUARY 2004

 

No 3

 

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The ACP Council of Ministers at the ACP-EU Joint Parliamentary Assembly.

 

 

 

The Minister for Foreign Affairs, International Trade and Regional Cooperation of Mauritius, Jayan CUTTAREE on Monday 16 February and the President of the ACP Council of Minister, Minister for Planification, Aménagement du Territoire and Economic Integration (Congo), M. Pierre Moussa, on Tuesday 17 February addressed the Joint Parliamentary Assembly. Minister Cuttaree informed the JPA about the ACP position on the EPA negotiations and Minister Moussa on the implementation of the Cotonou Agreement by the ACP.

 

 

 

Minister Jayan Cuttaree 

 

EPAs likely to be negative.

 

In the debate on EPAs in which EU Commissioner Lamy also intervened, Minister Cuttaree, representing the whole ACP Group, started by stressing that the EPA approach entails certain risks and could have negative effects on ACP countries in general and on African countries in particular, and that ACP countries will not gain many additional preferences or market access than those they currently enjoy. They will actually have, he added, to ultimately lower their tariffs when importing EU products and this might have very serious consequences for the ACP.

 

As far as he is concerned, EPAs could be trade diverting and result in an important transfer of tariff revenues from ACP to EU producers, thus worsening the terms of trade and resulting in a net welfare loss for the ACP. The ACP Minister said that some studies, including by the World Bank have estimated that the net impact of EPAs is likely to be negative.

 

 

Lack of adequate capacity of the ACP to engage in EPA negotiations. Minister Cuttaree felt that the negotiations will be taking place with many unknowns and it is not clear how the stalled WTO negotiations will impact on EPA negotiations. In situations where WTO rules will impact negatively on growth and development of ACP states, however well intentioned, the ACP could not support those rules, he affirmed, and would therefore not agree that subjects that have been rejected at the WTO should be brought to the EPA negotiations, in a back door way of influencing their eventual inclusion into the WTO agenda.

 

 

The Minister drew attention to the lack of adequate capacity of the ACP to engage in EPA negotiations although they have been launched in three ACP regions, because not many of the ACP countries have concluded in-depth studies and analysis on the impact of trade liberalization on the economies of individual ACP States. Even the European Commission, he pointed out, has not completed separate sustainability impact assessment studies for all the regions, except for West Africa and the Caribbean.

 

Sequence of the negotiations. For this reason, the ACP attributes great importance to the sequence of the negotiations. EPAs should first and foremost address regional integration and be focused on development. It is only after these countries have achieved a certain level of development that they can feel confident to negotiate and conclude reciprocal commitments.  EPAs should build on and not undermine regional integration arrangements. An integration process linking the ACP with the European Union should follow thereafter. Furthermore, the cohesion of ACP Group as a whole should not be weakened.

 

Phase 1 still to be concluded.Turning to the first phase of the EPA negotiations, Minister Cuttaree recalled  that the ACP expected this phase to be used to clarify the principles and matters of common interest and that the EU rejected any binding agreement. It is regrettable that the clarifications that were to have been made in the first phase have resulted in divergences. One area of divergence of views which is of critical concern to the ACP is the EU’s intention to apply the non-execution clause to the economic and trade and cooperation aspects of the partnership. This proposal goes beyond what the WTO provisions contain in the case of dispute. In practical terms, such sanctions can only be applied to the weaker side of this partnership.

 

 

 

Pierre Moussa, ACP Council President:

 

Implementation of Cotonou Agreement must be simplified and speeded up as a matter of urgency.

 

Mr. Pierre Moussa, President of the ACP Council of Ministers, first drew the Assembly’s attention to the need for fast progress in the implementation of the Cotonou Agreement which is due to be reviewed this year.

 

He stressed the need to simplify and accelerate the disbursement of resources under the 9th EDF. In that regard, he stated that the ACP Council of Ministers had approved the Brussels Declaration on the rapid and effective implementation of the 9th EDF adopted by the 7th meeting of ACP National and Regional Authorizing Officers in May 2003. He added that ACP-EU regional seminars had been planned, the first for the East African region due to take place in Addis Ababa from 20 to 23 February 2004.

 

 These seminars will, inter alia, contribute to the preparation of the mid-term review of the implementation of the Cotonou Agreement. The re-allocation of resources scheduled in certain cases should be done according to specific criteria agreed by both parties.

 

As regards simplification, the Minister affirmed the ACP States’ desire for deconcentration, which would confer real power on the European Commission Delegations in ACP countries.  Similarly, he pointed out that efforts must be made to reduce the administrative procedures for the management of the EDF to a strict minimum. Sectorial Ministerial meetings may prove useful, he counselled, as did the conference on Research, Science and Technology, and the one on culture held in Cape Town and Dakar, respectively, as well as others scheduled on Rural development and the Environment, and on Education.

 

The Council president announced that the ACP Group expected to submit firm proposals on the use of EDF resources.

 

 

 

Inclusion of the EDF in the EU budget. The Council President said that the ACP Group had been closely following the ongoing debate within the EU institutions on the European Commission’s proposal to include the European Development Fund in the EU budget. Although a decision had not yet been taken on the issue, he continued, the ACP Group considered it inexpedient to take any decision until after thorough consultations, and that the essential issue was that of knowing what the advantages of EDF budgeting would be in terms of speeding up disbursements, lightening the procedures, and safeguarding the principles of co-decision and ownership which constitute the basis of the acquis of the partnership. He said that other factors, such as the impact of the EU enlargement on the proposals relating to the said EDF budgeting, must equally be  defined.

 

Special attention to Political Dialogue   Hon. Moussa considered that, in the framework of the review of the Cotonou Agreement, Political Dialogue deserved the special attention of the negotiators, since specific parameters must be laid down to serve as a framework for that dialogue, especially as regards the provisions relating to Articles 96 and 97 of the Agreement which, among other things, govern the issue of sanctions. The re-examination must be aimed at ensuring that both parties have an identical interpretation of the provisions and the same understanding for their implementation.

 

Undertaking on Human Rights and Peace: The Council president noted that, as far as he was concerned, the ACP Group had, in the past months, intensified political dialogue between its members with a view to contributing to the consolidation of peace and dispute settlement in its Member-States and regions.

 

He undertook to strive to ensure that the European side would have no need to resort to Article 96 in case of failure to fulfil Human Rights obligations in the ACP countries.

 

Just like the Minister, the Council president also defended the ACP position regarding the EPAs.

 

 

 

 

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Contact :     Hegel Goutier    Addis Abeba    +251 9 64 02 38