A. Conclusions of the Sixth meeting of ACP Trade Ministers (Brussels,  31 July - 1 August 2003)

 

B. ACP Declaration on the Fifth ministerial Conference of the WTO

 

 

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A.

Conclusions of the Sixth meeting of ACP Trade Ministers (Brussels, 31 July - 1 August 2003)

 

 

 

 

1.         The ACP Ministers of Trade met on 31 July and 1 August 2003 in Brussels to prepare for the 5th WTO Ministerial Conference to be held in Cancun from 10-14 September 2003.  They also considered the state of progress in the ACP-EU negotiations of economic partnership agreements (EPAs) as well as developments regarding ACP-EU trade, namely the reform of the EU Common Agricultural Policy (CAP), the EU enlargement and the EU GSP.

 

2.         The meeting, which was chaired by Hon. Jacob NKATE, Minister of Trade and Industry of Botswana, was also attended by representatives of ACP regional integration organisations and observers, namely UNCTAD, the African Union, the Commonwealth Secretariat and the International Organization of the Francophonie.

 

3.         The Ministers examined the report of the Chairman of the preparatory  meeting of the Senior Trade Officials held on 29 and 30 July 2003.  The Ministers also had exchanges of views with Mr. R. Ricupero, Secretary-General of UNCTAD, Mr. P. Lamy, European Commissioner for Trade, and Dr. I.A. Goldin, Vice President of the World Bank. 

 

4.         After a substantive exchange of views, the Ministers reached the following conclusions:

 

A.        State of progress in the ACP-EU negotiations of economic partnership agreements

 

(a)        Phase I negotiations should result in a binding outcome for both the ACP and the EU.  The ACP Committee of Ambassadors should agree with the EC the necessary modalities in this regard.

 

(b)        In accordance with the ACP Negotiating Guidelines, ACP States or regions which consider themselves ready, could begin Phase II negotiations in September 2003.  They are urged to notify to the ACP Group through the General Secretariat of the Group, their configuration, structure, mandate and timetable for Phase II negotiations.

 

(c)        Outstanding issues of common interest should continue to be addressed, during Phase II, at the all-ACP-EU level.  The list of these issues would need to be agreed by the entire ACP Group.

 

(d)        The unity and solidarity as well as the cohesiveness of the ACP Group should be maintained in the entire negotiation process.  In this regard, a mechanism for monitoring the negotiations should be agreed by the ACP Group.

 

 

 

 

 

 

(e)        In the context of the on-going WTO negotiations on regional trade agreements (RTAs), the ACP should submit proposals, preferably before the Cancun Ministerial Conference, with a view to injecting flexibility in the rules governing RTAs to accommodate development-oriented EPAs, which will make them WTO-compatible.

 

(f)         The ACP should reject the inclusion of a non-execution clause in any EPA.

 

(g)        The ACP should reiterate the need for additional resources to be provided to them over and above EDF resources through flexible and rapid disbursement procedures so as to address their supply-side constraints and enable them to support the adjustment costs which EPAs would entail.

 

(h)        Both the external and internal indebtedness of ACP States could impede the adjustments which ACP countries would have to make as a result of EPAs and should therefore be addressed in the context of the EPA negotiations.

 

(i)         The process of delivery of capacity building should be accelerated through, inter alia, the rapid release of the necessary funds by the Project Management Unit (PMU) of the 20m euro programme. 

 

(j)         Since the meeting noted that the available funds would not be adequate for the capacity building needs of the ACP Group, including for catering for actions foreseen in Article 37(3) of the Cotonou Agreement, the EU should be requested to honour the commitment contained in that Article by identifying and allocating additional funds for this purpose.

 

B.            Developments regarding ACP-EU trade

 

(a)               CAP reform

 

(i)                Studies should urgently be undertaken, on a product by product basis, on the impact of the CAP reform on the production and trade in agricultural products of ACP countries.

 

(ii)               A compensatory mechanism should be put in place by the EU for ACP countries which would suffer losses as a result of the CAP reform.

 

 

 

 

 

 

 

 

(iii)             A study on the impact of CAP reform on ACP net food-importing developing countries (NFIDCs) should be carried out and measures should be taken to address its adverse effects.     

 

(iv)             Special attention should be paid to the issue of subsidies concerning cotton, including establishing a financial compensatory mechanism for affected ACP States.

 

(b)               EU enlargement

 

(i)                The ACP should forge close contacts at the highest political level with the acceding countries to the EU and with their business community in order to establish potential areas of cooperation and trade and investment opportunities.  Such opportunities should also be identified through market surveys and the organization of business forums in the acceding countries, and necessary follow-up is required on the part of the Committee of Ambassadors.

 

(ii)               Comprehensive studies should be carried out to identify opportunities as well as challenges posed by the accession of the new members to the EU, notably in respect of market access for ACP commodities.

 

(iii)             An assessment of the impact of EU enlargement on the negotiations of services, in particular with respect to mode 4 (movement of natural persons) should be carried out.

 

(iv)             Given the prospect of oversupply and consequent market instability in the banana market following the EU enlargement, the ACP call on the EU to take urgent action to avert the threat posed to ACP banana exports to the EU, and to any other commodities which may similarly be threatened. 

 

(c)            EU GSP

 

Given that multilateral trade negotiations and bilateral agreements concluded by the EU with other third countries are fast eroding the benefits derived from the EU GSP, including the EBA initiative, the ACP should make an assessment of the impact of the EU’s proposals on market access in the WTO negotiations, on the preferences provided, inter alia, by the EU GSP.  Appropriate compensatory mechanisms should be put in place by the EU for affected countries.

 

 

 

 

 

 

 

 

 

 

C.            Preparation for the 5th WTO Ministerial Conference

 

With regard to the preparation for ACP’s participation in Cancun, the Ministers:

 

(a)    adopted a Declaration (ACP/61/082/03 [FINAL]) spelling out the ACP Group’s position on the 5th WTO Ministerial Conference.

 

(b)   appointed Hon. Jacob NKATE, Minister of Trade and Industry of Botswana, Chair of the 6th ACP Ministers of Trade meeting, as the ACP Group’s overall spokesperson for the Conference.  

 

(c)        agreed to meet prior to and during the Conference to designate spokespersons for each of the subject areas to be identified for consultation during the Conference. In this regard, the overall spokesperson was mandated to consult with the Chair of the Ministerial Conference before its start and as often as necessary, in order to clarify the modalities for the conduct of the Conference.  This will enable the ACP Group to organize itself as necessary. It would also be necessary to agree on a minimum number of representatives to attend consultations on each of the subject areas so as to ensure effective coverage.

 

(d)        decided that the ACP Declaration on the fifth session of the WTO Ministerial Conference be circulated to all the participants as an official working document of the Conference.

 

(e)        mandated the ACP Group in Geneva to prepare a vademecum containing the detailed ACP position on all issues on the agenda of the Cancun Ministerial Conference.  In so doing, it should take account of the positions of the African Union and LDCs.  The Declaration and the vademecum will serve as a reference for the overall spokesperson and spokespersons on the various subject areas.

 

(f)         agreed to build alliances and to hold joint meetings with the African Union and the Least Developed Countries (LDCs) during the Conference in Cancun. Should the need arise, joint positions and alliances could be developed with other groupings.

 

(g)        agreed to develop and use, before and during the Cancun meeting, a media strategy focused on, inter alia, the need to issue press releases and convene press briefings and conferences as well as interviews, as often and as necessary.

 

 

 

 

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B

 

ACP DECLARATION ON THE

FIFTH MINISTERIAL CONFERENCE OF THE WTO

 

Brussels, 1 August 2003

 

We, the Ministers responsible for trade matters from the African, Caribbean and Pacific (ACP) Group of States, meeting in Brussels, Belgium on 31 July and 1 August 2003 to, inter alia, examine the state of the progress of negotiations of the Doha Work Programme at the World Trade Organization and coordinate positions on issues of common interest for the Fifth Ministerial Conference of the WTO scheduled for 10-14 September 2003 in Cancun, Mexico; 

 

Having regard to the Doha Ministerial Declaration in which WTO Members undertook to place the needs and interests of developing countries at the heart of the Work Programme adopted in the Declaration;

 

Recalling the relevant provisions of the Nadi Declaration of the 3rd Summit of ACP Heads of State and Government held in Fiji in July 2002;     

 

Taking into account the outcomes of the recent meetings convened in preparation for the Fifth WTO Ministerial Conference including, the Dhaka Declaration of the Trade Ministers of Least Developed Countries (LDCs) adopted in Dhaka, Bangladesh in June 2003, the Mauritius Declaration on the Fifth Ministerial Conference of the WTO adopted by the African Union Ministerial Meeting in Mauritius in June 2003 and endorsed by the Second Ordinary Session of the Assembly of Heads of State and Government of the African Union in Maputo, Mozambique, in July 2003  and the Decisions of the Twenty-Fourth  Meeting of the Conference of the  Heads of Government of the Caribbean Community  adopted in Montego Bay, Jamaica in July 2003;

 

Affirming the significance of commodities, in particular Cotton, Sugar, Rice, Bananas, Coffee, Tea, Tuna, Beef and Veal, to the economies of ACP States;

 

Reaffirming the importance of longstanding trade preferences for ACP States and in particular the significance of the preferential trade arrangements put in place by the European Communities for products originating from ACP States which aim at fostering their smooth and gradual integration into the world economy in harmony with their socio-economic development objectives;

 

Recognising the importance of international trade based on equitable rules as a tool for sustainable economic development and alleviating poverty and the need for members of the ACP Group, particularly the least developed, small and vulnerable among them, including countries in war and post-conflict situations, to secure a meaningful share of world trade; 

 

Convinced that a rules-based multilateral system that is equitable and responsive to the development needs of members of the ACP Group is essential to achieve an increased share of international trade; 

 

Realising that the implementation of the Doha Work Programme presents an opportunity to reform the multilateral trading system through balanced rules, enhanced market access and well targeted and sustainably financed technical assistance and capacity building programmes that will enhance the legitimacy, credibility and universal nature of the system and create a basis for a new equitable global economic order for the benefit of all WTO Members;

 

Recognising that effective participation of members of the ACP Group in the implementation of the Doha Work Programme is constrained by their limited institutional, human and financial capacity;

 

Considering that approximately fifty percent of ACP States are Least Developed Countries (LDCs) and emphasizing the need for this category of countries to receive priority attention in order to facilitate their full integration into the multilateral trading system;

 

Emphasising that the ACP Group of States comprise most of the vulnerable countries, i.e. Small Island Developing States, landlocked countries, Net Food Importing Developing Countries (NFIDCs), Highly Indebted Poor Countries (HIPC), limited commodity exporting countries, and countries in war and post-conflict situations, whose vulnerability and lack of resilience to external shocks expose them to a high risk of marginalization from the multilateral trading system;

 

Concerned by the slow progress in the implementation of the Doha Work Programme, and that important deadlines on issues of particular interest to developing countries such as TRIPS and Public Health, Special and Differential Treatment, Implementation, and Agriculture Modalities have been missed;

 

Concerned that the lack of meaningful progress on these issues has the potential to undermine the confidence of ACP States in the multilateral trading system;

 

Declare that with regard to –

 

The Multilateral Trading System

 

1.                   We reiterate the importance of reforming the multilateral trading system to remove the existing imbalances which impact negatively on ACP Member States.  Further, we call for flexibility in the rules and their application, and for greater policy space for developing countries and particularly the least developed, small and vulnerable among them, including countries in war and post-conflict situations.    

 

2.                   We stress that it is urgent and essential to address development issues that have been placed at the centre of the Doha Work programme. 

 

Trade Preferences

 

3.                   We reiterate the vital importance of long standing trade preferences for ACP States for offsetting the loss of competitiveness, and call upon WTO members to provide for the maintenance and security of such preferences, through flexible rules and modalities that allow for exemptions based on special development needs.  In addition, the erosion of preferences must be addressed through, inter alia, the establishment of compensatory and other appropriate mechanisms, including measures to promote exports. Technical and financial assistance should be provided to ACP States for improving infrastructure, productivity and diversification, and for development of facilities and systems to achieve compliance with the SPS and TBT requirements for exports from members of the ACP Group.  We also call upon WTO Members not to take measures which would further erode preferences, in order to enable preference beneficiary countries which trade on a limited number of products or commodities to continue to benefit from equitable share of the world market while progressively developing their competitive advantages and facilitate their integration into the multilateral trading system.

 

Decision-Making Process

 

4.                   We reiterate the critical importance of creating a transparent, democratic, all-inclusive and consultative decision-making process in the WTO, as this is vital to enhancing the credibility of the WTO and the multilateral trading system.  We reiterate the importance of taking decisions by consensus, in accordance with paragraph 1 of Article 9 of the WTO Agreement.

 

5.                   We urge the WTO Members to ensure that the decision-making process at the upcoming Ministerial Conference in Cancun is transparent and inclusive, through the adoption of procedural rules.  Those rules should ensure, among other things, that: (a) proposals of the various members or groups of members are reflected in draft texts that form the basis of negotiations, (b) appointment of the Chairpersons of working groups is made by a decision of all WTO members; (c) all WTO members are informed of all meetings and are entitled to participate in them, and (d) issues of importance, including consideration of a proposal to extend the length of the Conference, should be put before all WTO Members for a decision.

 

Doha Work Programme

 

Special and Differential Treatment

 

6.                   We emphasise that Special and Differential Treatment (S&DT) is a core principle in the WTO and an important instrument for mainstreaming development in the multilateral trading system.  In that regard it is necessary to (i) strengthen and operationalize existing S&DT provisions; (ii) introduce new effective provisions in existing disciplines;  (iii) entrench mandatory and binding S&DT provisions during the present and future negotiations.

 

7.                   We call on WTO Members, particularly the developed countries, to reflect the political will necessary to meaningfully address S&DT proposals made by developing countries, so that agreement may be reached on concrete results before the fifth Ministerial Conference.

 

Implementation Issues

 

8.                   We note, with concern, that despite the commitment in the Doha Declaration to give the “utmost importance” to implementation-related issues, there has been little progress, and that the majority of the issues remain unresolved long past the end of 2002 deadline.  We call upon all the WTO members, especially the developed countries, to demonstrate the political will to seriously and effectively address in a substantive manner all of the outstanding implementation issues before the fifth Ministerial Conference.   

 

Agriculture

 

9.                   We express concern at the failure to meet the deadline for the establishment of modalities for further commitments in Agriculture, which represents a major setback in the negotiations. Agriculture is of critical importance to the economic development of ACP States and holds the potential to lift millions of people out of poverty.  Progress in the agricultural negotiations is essential for the successful conclusion of the Doha Work Programme.

 

10.               We note with concern that there has been little movement on key outstanding issues such as the formula to be used for reducing tariffs and special provisions for developing countries. We note that the Harbinson text on draft modalities does not adequately deal with the structural problems of the Agreement on Agriculture.

 

11.               We reiterate the need to improve the market access for all agricultural products originating from ACP States and call for the implementation of a programme to support the enhancement of the supply capacities in the agricultural sectors of ACP States. 

 

12.               We reiterate the need to address export subsidies and domestic support in accordance with the Doha WTO Ministerial Declaration while preserving existing preferential arrangements. 

 

13.               We reiterate the need for the developed countries to eliminate export subsidies and reduce trade distorting domestic support significantly on certain products of interest to ACP countries.

 

14.               We also request the setting up of a financial compensatory mechanism to cover the revenue losses resulting from export subsidies by developed countries.

 

15.               We call on the developed countries to exercise restraint in applying TBT and SPS measures on products from ACP countries.  Where such measures are necessary, technical assistance should be provided to enable ACP countries to overcome them.

 

16.               We reaffirm the critical importance of food security, rural development, security of livelihood and other public policy objectives of the members of ACP Group and call upon WTO Members to take these objectives into account in the modalities to be established in Agriculture. 

 

17.               We emphasise that the new Special Safeguard Mechanism (SSM), Strategic Products (SP) and the special needs of NFIDCs are of priority interest to developing countries and reiterate the need for these to be appropriately provided for in the agriculture negotiations.

 

18.               We urge the developed countries to provide bound duty-free and quota free market access to all imports from LDCs.  The product coverage should include agricultural products in their primary, semi-processed and processed forms.  Further we reiterate that LDCs are exempt from reduction commitments, in accordance with Article 15.2 of the Agreement on Agriculture.

 

19.               We strongly welcome as an important step forward proposals on preferences as contained in the Harbinson text and call upon WTO Members to build upon and also address the issue of erosion of preferences, including through the adoption of an appropriate formula as regards tariff reduction.

 

20.               We wholeheartedly support the initiative by West and Central African countries in the context of the WTO, to address urgently the negative impact experienced by them and other cotton producing Members of the ACP Group as a consequence of export and production subsidies on cotton and other trade distorting practices employed by some developed countries.

 

21.               We call upon the Ministers at the fifth Ministerial Conference to take a decision on the rapid elimination of subsidies on cotton and adopt measures so as to compensate those countries adversely affected by these practices.  We appeal to WTO members to recognise cotton as essential to the development policy of the ACP Groups’ cotton producing members.

 

22.               We recognise the urgent need to pay priority attention to the serious problem of commodity dependence, continuous declines and sharp fluctuations in the prices of commodities of export interest to ACP States.  We therefore support initiatives taken within the WTO to resolve these problems.

 

23.               We emphasise the importance of longstanding preferential arrangements for sugar to the development of ACP economies. We deeply regret the recourse to the WTO dispute settlement procedures by Australia, Brazil and Thailand against the EU Sugar regime which, if upheld, would result in serious adverse effects on the livelihood of many farmers and serious political, economic and social problems in the ACP States concerned.  We are therefore determined to work with other members of the WTO to establish the appropriate modalities in order to secure our vital preferential arrangements.

 

Services

 

24.               We note that the gains derived from services liberalisation have accrued primarily to developed countries, due to their greater supply capacity, efficiency and competitiveness.  We underscore the need for targeted measures geared at redressing the imbalances and inequities that currently exist.  To that end, we reiterate the need to respect the principle of progressive liberalisation, in particular, the flexibility provided to ACP States and other developing countries to open fewer sectors, in line with their national development objectives, and the liberalisation by developed countries in sectors and modes of export interest to ACP countries, particularly through the movement of natural persons (Mode 4).

 

25.               We stress that, due to capacity constraints, ACP States have not been able to actively take part in the current request and offer negotiations, as there are few sectors in the other countries in which the local enterprises from ACP States can meaningfully participate.  In light of this, we urge other WTO Members to refrain from making excessive demands on members of the ACP Group in this regard.   We further urge that due respect must be given to the right of members of the ACP Group to regulate trade in services and liberalise according to their national policy objectives.


 

26.               We call upon the WTO membership to expeditiously finalise and adopt modalities for LDCs.

 

27.               We highlight the importance that the ACP Group places on the operationalisation of Article IV of the General Agreement on Trade in Services, as set forth in paragraph 15 of the Guidelines and Procedures for the Negotiations on Trade in Services.

 

28.               We ask that the requisite assistance be given, in the context of the WTO and other relevant international organisations and agencies, to carry out an assessment of the effects of previous services liberalisation and the potential effects of future liberalisation in ACP States individually and as a Group, so that our negotiating position may be more informed. 

 

Market Access for Non-Agricultural Products

 

29.               We are of the view that the objectives of the current negotiations on non-agricultural market access are to facilitate the development and industrialization processes in our countries and thus these negotiations must give attention to: (i) providing market access for products of export interest to ACP States;  (ii) ensuring that ACP States are allowed to choose their own rate and extent of future import liberalization, so as not to cause further adverse effects on local industries; (iii) addressing the problems that ACP States will  face from erosion of preferences;  and (iv) addressing the need for ACP States to build their supply capacity so that they can take advantage of any increased market access opportunities.  We have highlighted these issues individually and collectively in the Negotiating Group.

 

30.               We welcome the Chairman’s proposal to exempt LDCs from making reduction commitments. However, we are deeply disappointed that the draft elements of modalities proposed by the Chairman of the Negotiating Group on Market Access for Non-Agricultural products do not take these issues into account and in fact contain other provisions, including the complete elimination of tariffs in specific sectors that are likely to have serious negative consequences for ACP States. We therefore urge that the revised text on modalities take fully on board the elements proposed by the ACP States.

 

31.               We also call for the adoption of a tariff reduction formula that should provide sufficient flexibility and scope to enable ACP States to continue to have adequate and effective levels of preferences necessary for the maintenance of their competitiveness in their export markets.  Only such an approach would guarantee balance, equity and benefits for all WTO members in the outcome of the Doha Round.  Moreover, any tariff reduction which will adversely impact on the revenues of ACP States should be adequately compensated.

 

32.               We call for the operationalisation of the concept of “less than full reciprocity in reduction commitments. . .” for developing countries as expressed in the Doha Declaration.  In that regard, the modalities should enable ACP States and other developing countries to decide their own rate, pace and scope of liberalisation, undertaking commitments only to the extent consistent with their individual development, financial and trade needs.

 

TRIPS and Public Health

 

33.               We call attention to the fact that grave public health challenges continue to afflict many developing and least developed countries and underscore the commitment in the Declaration on the TRIPS Agreement and Public Health that “the [TRIPS] Agreement can and should be interpreted and implemented in a manner supportive of WTO’s Members’ right to protect public health and, in particular, to promote access to medicines for all.”

 

34.               We reaffirm that the Declaration on the TRIPS Agreement and Public Health clarifies the relationship between the TRIPS Agreement and Public Health policies and we are deeply concerned by the impasse in finding a solution to the issues identified under paragraph 6 of that Declaration. We strongly urge WTO Members to demonstrate the political will necessary to forge a sustainable, simple, predictable and legally binding multilateral solution, without restrictions and according to the manner outlined in the Declaration, before the Ministerial Conference.

 

 Trade-Related Aspects of Intellectual Property Rights 

 

35.               We continue to urge that the review of Article 27.3(b) of the TRIPS Agreement should conclusively clarify that all living organisms including plants, animals and parts of plants and animals, including gene sequencing and biological and other natural processes for the production of plants animals and their parts should not be patented. 

 

36.               We support the position of the LDCs as set forth in the Dhaka Declaration that WTO members “shall select their own sui generis system for plant variety protection, including recognising traditional knowledge and the rights of farmers to use, save, re-sow, exchange or sell seeds”, and the position of the Africa Group, that Members have the right and the freedom to determine and adopt appropriate regimes in satisfying the requirement to protect plant varieties by effective sui generis systems and any sui generis system adopted should enable Members to retain their right to adopt and develop measures that encourage and promote the traditions of their farming communities and indigenous peoples in innovating and developing new plant varieties and enhancing biological diversity.