ACP/25/005/03 [Final]                                                         Brussels, 15th May 2003

             

 

 

 

 

 

 

 

 

 

 

 

 

Decisions and Resolutions of the 77th Session of the ACP Council of Ministers

(Brussels, ACP House, 10-13 May2003)
SUMMARY

 

DECISIONS

 

No.1   ON THE ACCESSION OF THE DEMOCRATIC REPUBLIC OF TIMOR LESTE TO THE ACP-EC PARTNERSHIP AGREEMENT AND THE GEORGETOWN AGREEMENT  

 

No.2   ON PROGRESS ON NEGOTIATIONS OF THE ECONOMIC PARTNERSHIP AGREEMENTS

 

No.3   ON TEXTILES AND CLOTHING

 

No.4   ON THE BRUSSELS DECLARATION ON THE TIMELY AND EFFECTIVE IMPLEMENTATION OF THE EUROPEAN DEVELOPMENT FUND (EDF) / EUROPEAN PROGRAMME FOR RECONSTRUCTION AND DEVELOPMENT (EPRD)

 

 

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RESOLUTIONS

 

No.1   BANANAS

 

No.2   RICE

 

No.3   SUGAR *

           

No.4   NORMALIZATION OF RELATIONS BETWEEN THE SUDAN AND THE EUROPEAN UNION AND RESUMPTION OF DEVELOPMENT COOPERATION AND RELEASE OF STABEX TRANSFERS

 

No.5   THE INITIATIVE OF PRESIDENT CHIRAC ON AGRICULTURAL DEVELOPMENT FOR SUB-SAHARAN AFRICA

 

No.6   TUNA

 

No.7   COTTON

 

 

 

*        This resolution will be transmitted later

 

 

DECISION No.1/LXXVII/03

OF THE 77TH SESSION OF THE ACP COUNCIL OF MINISTERS

HELD IN BRUSSELS FROM 13 TO 15 MAY 2003

 

 

 

ON THE ACCESSION OF THE DEMOCRATIC REPUBLIC OF TIMOR LESTE TO THE ACP-EC PARTNERSHIP AGREEMENT AND THE GEORGETOWN AGREEMENT

 

 

The ACP Council of Ministers,

 

IN VIEW OF the request dated 9 May 2002 from the Democratic Republic of Timor Leste for accession to the ACP-EC Partnership Agreement and membership of the ACP Group of States;

 

TAKING INTO ACCOUNT the provisions of Article 94 of the Cotonou Agreement and Article 22 of the Georgetown Agreement;  

 

BEARING IN MIND that Timor Leste had been granted observer status in the joint institutions of the Cotonou Agreement as well as the organs of the ACP Group of States;

 

HAVING NOTED the conclusions of the impact study commissioned by the ACP Secretariat on the aforementioned request of Timor Leste;

 

HEREBY DECIDES:

 

To agree that the 28th Session of the ACP-EC Council of Ministers approves the decision regarding the accession of the Democratic Republic of Timor Leste to the ACP-EC Partnership Agreement; and

 

To accept the accession of the Democratic Republic of Timor Leste to the Georgetown Agreement as the 79th member of the ACP Group of States, with all the attendant rights and obligations.

 

 

                                                                                    Done at Brussels, 15 May 2003

 

 

 

 

 

Hon.  Serge VOHOR

Deputy Prime Minister of Vanuatu

President of the ACP Council of Ministers


DECISION No.2/LXXVII/03

OF THE 77TH SESSION OF THE ACP COUNCIL OF MINISTERS

HELD IN BRUSSELS FROM 13 TO 15 MAY 2003

 

 

ON PROGRESS ON NEGOTIATIONS OF THE ECONOMIC PARTNERSHIP AGREEMENTS

 

 

The ACP Council of Ministers,

 

                       

Recalling Decision No.1 of its Special Session held on 25 and 26 September 2002;

 

Recalling the ACP Guidelines for the Negotiations of the Economic Partnership Agreements which provide for a two-phased negotiation process and that the second phase of the negotiations at the national or regional level could start in September 2003;

 

Having considered the report of the Committee of Ambassadors on the state of progress in the negotiations of EPAs under Phase I;

 

Emphasizing that the desired outcome of Phase I EPA negotiations includes concluding an all ACP-EC Agreement on principles and objectives as well as issues of common interest to the entire Group;

 

Concerned over the slow progress in achieving the objectives of Phase I EPA negotiations and that divergences on issues of principle have arisen;

 

HEREBY DECIDES:

 

1.         To meet in a special session, as soon as possible, to consider the state of the negotiations and prepare for the 2nd ACP-EC Ministerial Meeting on the Negotiations of EPAs, which should take place before the end of the third quarter of 2003;


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2.         To mandate the Committee of Ambassadors and the Secretary-General to undertake preparations for these meetings.

 

 

 

 

 

                                                                        Done at Brussels, 15 May 2003

        

 

 

 

 

 

 

 

Hon. Serge VOHOR

       Deputy Prime Minister of Vanuatu

       President of the ACP Council of Ministers


DECISION No.3/LXXVII/03

OF THE 77th SESSION OF THE ACP COUNCIL OF MINISTERS

HELD IN BRUSSELS FROM 13 TO15 MAY 2003

 

 

ON TEXTILES AND CLOTHING

 

 

 

The ACP Council of Ministers,

 

Recalling that under the Cotonou Agreement, exports of textiles and clothing products from ACP States to the EU are not subjected to quotas and duties;

 

Noting that this preferential treatment has helped to attract investment and technology to ACP States and thus encouraged the development of the textiles and clothing industries in many ACP States;

 

Aware of the heavy dependence of various ACP States on preferential access for their exports of textiles and clothing;

 

Aware also of the critical importance of those industries and their contribution to the economies of a large number of ACP States, many of which are LDCs and small and vulnerable islands, since they provide employment to thousands of people and generate valuable export earnings necessary for their sustained growth and sustainable development;

 

Noting that the WTO Agreement on Textiles and Clothing provides for the abolition of all quotas on textiles and clothing exports by the end of 2004 whereby only a few very large producers/exporters will benefit and many small and vulnerable countries will lose out;

 

Noting also the on-going negotiations in the WTO on industrial products, in particular the EU proposal on tariff compression which, if accepted, will have serious adverse effects on the competitiveness of the textiles and clothing sector of the ACP States;

 

Further noting that the Conference on the Future of Textiles and Clothing after 2005, held in Brussels on 5-6 May 2003 under the auspices of the European Commission, recognized the need to maintain the preferential regime for certain categories of developing countries, particularly the ACP and the LDCs and that trade liberalization should not be based only on comparative advantage but also on fair trade and solidarity;

   

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Deeply concerned that the removal of quotas on textiles and clothing exports and the reduction of tariffs on textiles and clothing as a result of the WTO negotiations will pose a serious threat to the survival of the ACP textiles and clothing industries, especially in view of the resulting stiffer competition;

 

Recognizing that unless ACP States modernize and restructure their textiles and clothing industries and upgrade their managerial and marketing skills, they will not be able to adapt to these challenges;

 

Considering that it is difficult for many ACP States to finance the crucial investment required to modernize and restructure their textiles and clothing industries as most of their companies are already highly indebted and the possibility of generating resources from within is limited;

 

HEREBY DECIDES:

 

-                To mandate the Committee of Ambassadors to submit, as a matter of urgency to the European Commission, a project to be financed from unutilized resources of past EDFs and/or 9th EDF reserves and/or intra-ACP funds, for the restructuring and modernization of the textiles and clothing industries of the ACP States and to report developments to the next meeting of the ACP Ministerial Trade Committee and to the 78th Session of Council.  The resources to be allocated should be commensurate with the need to enable the ACP States to operate in a liberalized trading situation.

 

 

 

 

 

                                                                                    Done at Brussels, 15 May 2003

 

 

 

 

 

 

Hon.  Serge VOHOR

Deputy Prime Minister of Vanuatu

President of the ACP Council of Ministers


DECISION No.4/LXXVII/03

OF THE 77th SESSION OF THE ACP COUNCIL OF MINISTERS

HELD IN BRUSSELS FROM 13-15 MAY 2003

 

 

ON THE BRUSSELS DECLARATION ON THE TIMELY AND EFFECTIVE IMPLEMENTATION OF THE EUROPEAN DEVELOPMENT FUND (EDF) / EUROPEAN PROGRAMME FOR RECONSTRUCTION AND DEVELOPMENT (EPRD)

 

 

The ACP Council of Ministers,

 

Acknowledging the important role of National and Regional Authorizing Officers (NAOs/RAOs) in the timely and effective disbursement of European Development Fund (EDF) / European Programme for Reconstruction and Development (EPRD) funded programmes and projects in ACP States and regions;

 

Having noted the conclusions and recommendations of the 7th Meeting of National and Regional Authorizing Officers (NAOs/RAOs), which was held in Brussels from 10 to 12 May 2003;

 

 

HEREBY DECIDES:

 

1.         To endorse the Brussels Declaration of the 7th meeting of the National and Regional Authorizing Officers on the timely and effective implementation of the European Development Fund (EDF) / European Programme for Reconstruction and Development (EPRD);

 

2.         To mandate the ACP Development Finance Committee (DFC), assisted by the Committee of Ambassadors, to follow-up its implementation in conjunction with the Joint DFC; and


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3.         To request the Secretary-General of the ACP Group of States to forward the Brussels Declaration to the President of the European Commission, and the Co-Presidents of the ACP-EU Joint Parliamentary Assembly (JPA).

 

 

 

                                                                                    Done at Brussels, 15 May 2003

 

 

 

 

 

 

 

 

Hon.  Serge VOHOR

Deputy Prime Minister of Vanuatu

President of the ACP Council of Ministers


RESOLUTION

OF THE 77TH SESSION OF THE ACP COUNCIL OF MINISTERS

         HELD IN BRUSSELS, BELGIUM FROM 13 TO15 MAY 2003

 

 

BANANAS

 

 

The ACP Council of Ministers,

 

            -           Meeting in Brussels (Belgium) from 13 to 15 May 2003;

 

A.                  HAVING REGARD to the Resolution of the ACP-EU Joint Parliamentary Assembly on  Bananas adopted  at  its fourth Session in Cape Town (South Africa) from 18 – 21 March 2002;

 

B.                    RECALLING  the Resolution on Bananas adopted at the 76th Session of the ACP Council of Ministers held in Brussels on 10th and 11th December 2002;

 

C.                  AWARE of the considerable importance of banana production and trade to the economic and social stability and development of ACP countries;

 

D.                  WHEREAS the Community is bound by Article 36.3 of the Cotonou Agreement under which the non-reciprocal trade preferences applied under the Fourth EC Convention shall be maintained under the conditions defined in Annex V;

 

E.                    WHEREAS under Protocol 5 of the Fourth ACP-EC Convention the Community is bound to guarantee that no ACP State shall be placed as regards access to its traditional markets and its advantages on those markets in a less favourable situation than in the past or present;

 

F.                    WHEREAS the Community is bound by the Cotonou Agreement especially Article 1 of Protocol 5 of Annex V  thereto to take measures to ensure the viability of the ACP banana exporting enterprises as well as the maintenance of outlets for ACP bananas on the Community market;


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G.   WHEREAS EU banana imports from the ACP are governed by import licensing arrangements which disproportionately penalise ACP suppliers, particularly the most vulnerable, and the concerns expressed to the Commission by the JPA and the ACP were not given due consideration, with the result that ACP interests have not been satisfactorily accommodated in the reform of the EU banana regime;

 

H.     RECOGNIZING that elements of the reform of the Common Organization of the Market for Bananas, such as an increase of the quota for third countries and a concentration of licences in the hands of fewer importers have resulted in prices plummeting to levels which threaten to displace ACP suppliers, most of whom have no alternative markets;

 

I.        CONCERNED about the continuing deterioration of prices for ACP bananas on the European Market which threatens the existence of the ACP banana industry, and which has resulted in the recent cessation of banana production from Suriname, as well as the serious threat to continued production of bananas from the Windward Islands and Belize;

 

J.      CONCERNED about the adverse effects on banana prices as a result of EU enlargement and about viability of the banana industry in the ACP States, in the event of any increase in the relevant quota;

 

K.      CONCERNED by the response from the Commission dated the 10th of January 2003, in which it states that no price guarantee mechanism is envisaged under the CMO for bananas and that the volume of the tariff quota can only be modified to ensure supply of the EU market;

 

 

1.      Calls on the European Union to undertake the following:

 

·        Introduce immediate measures to halt and reverse the continued deterioration of prices and ensure that access to the European market for ACP bananas at  a remunerative price is preserved;

 

·        Consult with the ACP on the process of EU enlargement and the potential impact of such enlargement on the regime for bananas;

 

 

 

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·        Establish a mechanism out of the unallocated 8th E.D.F.  resources to provide technical and financial assistance to ACP countries that do not currently benefit from the Special Framework of Assistance (SFA), as well as a Disaster Fund ;

 

·        Ensure that any increase in the quota for bananas resulting from EU enlargement  doe