Statement of Hon. Dame Billie Miller, Minister for Foreign Affairs and Foreign Trade, Barabaods and Chairperson of the ACP Ministerial Trade Committee at the Commonwealth consultation session with ACP ministersHonourable Ministers, Commonwealth Deputy Secretary-General,ACP Co-President of the ACP-EU Joint Parliamentary Assembly, Secretary-General, Commonwealth Parliamentary Association,Executive Director, South Center,Representatives of the British Government,ACP Chief Regional Trade Negotiators, Excellencies, Ladies and gentlemen; It is a great pleasure for me to be invited to speak to you at this forum on “Unlocking the Log Jam” in trade negotiations. Let me thank Ambassador Ransford Smith for his kind words of welcome words and for organizing this very useful forum. The African, Caribbean and Pacific Trade Ministers and Chief Negotiators met on the occasion of the Third ACP Chief Negotiators Coordination Meeting, held in Berlin on October 30 th and 31 st, 2006 to review progress in ACP-EU negotiations. There was also a meeting on the afternoon of October 31 st with the German Minister for Economic Cooperation and Development, Mrs. Heidemarie WIECZOREK-ZEUL, and her Officials. ACP meeting focused on three main items, namely: AStrategic consideration of major issues in EPA negotiations; the EPA Review; and the Political Dimension of the EPA Process. In considering the first subject, the major issues in the EPA negotiations, the Ministers discussed the following:
Ministers reiterated that the principal objectives of ACP regions in undertaking the EPA negotiations is to foster the structural transformation of their economies; increase the production and supply capacity of their countries; promote sustained growth; and to eradicate poverty. The developmental aspect of EPAs is a fundamental issue for ACP countries and constitutes their primary reason for undertaking EPA negotiations. The discussions over the past two days, both among the ACP colleagues and in the exchanges with the German Minister of Development Cooperation, underlined that development should infuse all facets of an EPA, and should not be limited to trade liberalization coupled with a few trade facilitation projects. To this end, the Ministers agreed that the ACP should try to ensure that EPAs are structured in a manner which would prioritise the development dimension of EPAs.
The Ministers noted the conclusions of the General Affairs and Economic Relations Council of October 17 th concerning commitments of the EC and EU Member States on Aid for Trade and concluded that it was necessary to have further clarification about the available funding for EPAs-related adjustment. Ministers emphasized that EPA funding should not be at the expense of funding for existing social development priorities, such as health and education. The meeting also drew attention to the issue of government revenue losses arising from the implementation of EPAs and stated that it is of great concern to ACP countries which depend heavily on import tariffs, particularly the least developed countries. The Ministers also observed that the Regional Preparatory Task Force (RPTF) mechanism should be reviewed in order to give it a meaningful role in the EPA process. Furthermore, it was agreed that the ACP should seek the establishment of an EPA adjustment facility with distinct thematic windows catering for fiscal and balance of payments adjustments, investment and sectoral initiatives.
Ministers emphasized the need to prioritize national and regional policy formulation and to build implementation capacities in ACP countries in advance of any trade liberalization. Regions are willing to make market access offers in areas where they have achieved the competence and areas where there is no domestic production. However, Ministers agreed that the option of tariff elimination on revenue sensitive products should only be activated after successful programmes of revenue diversification have been implemented. The EPAs should stipulate an appropriate transition period to allow time for the ACP to address supply side constraints in their economies and prepare economic operators to face international competition. The Ministers further emphasized that there should be an appropriate definition of product coverage to take into consideration the level of development and vulnerabilities of ACP countries.
Ministers were of the view that the Commission’s approach to the regional integration process contradicts the principle objectives of the EPAs with respect to the enhancement of regional integration processes, as set out in the Cotonou Agreement. ACP regions should be allowed to pursue their regional integration processes at a pace which is politically, economically and socially legitimate and sustainable.
The Ministers recognized the importance of the services industries for their development and emphasized that EPAs should address services in a manner to build capacity among ACP services suppliers before ACP countries are required to open their markets to EU enterprises. F. On the Singapore Issues Ministers concluded that the Singapore issues should be approached with caution and noted that there appears to be a willingness among some regions to discuss these issues in line with existing national and regional capacities. However, most are constrained by the absence of appropriate national and regional frameworks and implementation capacities. G. On the Other Negotiating Issues Ministers underlined the importance of investment for economic growth and, in this regard, noted that some ACP countries have been negotiating bilateral investment treaties with EU Member States. Therefore, some regions might wish to negotiate investment chapters in their EPAs. The Ministers emphasized the importance of the EIB’s Investment Facility as a channel to facilitate the flow of finance to the ACP countries and expressed the wish to see more of these resources made available to small and medium-sized enterprises on concessionary terms. The general view among Ministers was that the rates of interest and conditionalities were too onerous. Ministers concluded that solutions to this problem should be sought in the context of the EPA negotiations. 2. On the second issue, the EPA Review The Ministers emphasized that the EPA review should allow for a comprehensive assessment of the negotiations. It was noted that some regions have initiated the review process on the basis of the jointly agreed modalities. Taking into consideration the many important unresolved issues, the Ministers expressed the view that ACP regions should not be compelled to rush through EPA negotiations merely to meet deadlines. The focus should be to continue with the negotiations until we are able to conclude EPAs which can facilitate the attainment of key development objectives. 3. On the third issue of the political dimension of the EPA process Given the importance of the development dimension in the EPA negotiations, and the apparent reluctance of the European Commission in this aspect of the negotiations, Ministers highlighted the need for EU Member States to be more involved in the EPA process The Ministers expressed concern at the seeming disconnect between the views articulated by Senior Commission officials and the positions taken by their trade negotiators. ACP Ministers also took note of the recent coordination effort among the key Commission Directorates on the EPA process, in particular as it relates to the primacy of ACP concerns such as the importance of addressing supply-side issues ahead of market opening. Discussions with German MinisterTo conclude my statement, I will summarize the main outcomes of our discussions with the German Minister for Development Cooperation, Mrs. Heidemarie WIECZOREK-ZEUL. At that meeting the following was agreed:
We look forward to fruitful discussions this afternoon with British Government Authorities tomorrow on these issues of critical importance to the development of our countries. I thank you. |
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