EU adopts new strategy for trade relations with ACP countries

Summary: June 17, 2002: EU adopts new strategy for trade relations with African, Caribbean and Pacific countries (Brussels)

On 17 June EU Foreign Ministers unanimously endorsed a far-reaching mandate for the European Commission to negotiate Economic Partnership Agreements with 76 countries of the African, Caribbean and Pacific (ACP).

Negotiations will start in September this year. EU Trade Commissioner Pascal Lamy welcomed the move, saying: "Economic Partnership Agreements will mark a major shift in the Community's trade policy towards deeper economic relations with developing countries and is part of our efforts to integrate poor countries better into the global economy. We made a good start on this with the Everything-but-Arms initiative for the least developed countries.

The Doha Development Agenda is going to set the multilateral trade framework with a strong development dimension. This new strategy broadens our bilateral trade co-operation with the ACP countries by tackling non-tariff barriers to trade, strengthening regional trade integration and enhancing the competitiveness of ACPs' economies through a comprehensive package of aid and trade measures. With this approach, Economic Partnership Agreements will promote good policies, stimulate economic activities and contribute to poverty reduction." The Commissioner for Development and Humanitarian Aid, Poul Nielson, stated: "We have to fight against the fragmentation of the markets and economies of developing countries. The current situation discourages investment and hinders trade. Regional openings are necessary for the development of ACP economies. We also have to remember that trade is not an end in itself but a means to promoting social and economic development. The EPA approach and the Cotonou Agreement are a global response to the needs of the ACP group."

The mandate has been approved in record time, and confirms the EU's commitment to EPAs and the development of ACP countries. The Commission will continue to treat this as a priority with an ambitious time frame, commencing negotiations in September. Commissioner Lamy will attend the ACP Heads of Government meeting in Fiji in July, where preparations for EPAs will be high on the agenda. The Commission has allowed for flexibility in negotiation and implementation of EPAs in order to respond to the differing needs and conditions within each ACP country or region.. Negotiations will take place within a six-year time frame and the ACP will then have a sufficiently long transitional period in which to implement the results of the negotiations, reflecting the levels of development of each country or region.

Key elements of the negotiating strategy include:

Enhanced market access to the EU: At the moment, 93% of ACP exports to the Community already enter the EU duty and quota free. The EU will further abolish remaining tariffs, focus on co-operation with the ACP countries to remove non-tariff barriers and assess technical hurdles (such as rules of origin), with a view to facilitating market access for the ACP.
Gradual and managed liberalization of ACP economies: Tariff reductions on the ACP side will be phased in gradually and will be accompanied by support measures according to existing economic, social and environmental constraints. This process will conform to the objectives of the Cotonou Agreement and WTO rules.
Regional integration: EPAs will aim to deepen the existing integration process, thereby creating larger and more attractive markets for local and foreign investors. National policies will be harmonized at the regional level, helping to create a more transparent and stable economic environment. Regional integration will contribute to enhanced political stability, especially in Africa.
Encouraging more beneficial investment: The strategy foresees deeper co-operation in areas related to trade such as competition and investment, especially in the light of improved regional integration.
Trade in services: This is a key concern for many ACP countries. The EU is flexible in terms of timing and phasing of these negotiations, in accordance with the different needs and levels of development of its ACP partners.
A comprehensive approach: Negotiations will maintain the close link between development co-operation and trade, and will tailor agreements to specific regional needs and conditions. Negotiations will be conducted in full consultation with non-state actors such as business, social partners and NGOs.

Background:

The basic principles and the time frame for EPA negotiations were set out in the Cotonou Agreement, which was concluded between the EU and 77 ACP countries in June 2000, and governs development, political and trade aspects of EU-ACP relations. The Cotonou Agreement states that negotiations for EPAs will take place between September 2002 and January 2008.

The 76 ACP countries eligible for EPAs are:

Angola, Antigua and Barbuda, Bahamas, Barbados, Belize, Benin, Botswana, Burkina Faso, Burundi, Cameroon, Cape Verde, Central African Republic, Chad, Comoros, Congo (Brazzaville), Congo (Kinshasa), Cook Islands, Côte d'Ivoire, Djibouti, Dominica, Dominican Republic, Equatorial Guinea, Eritrea, Ethiopia, Fiji, Gabon, Gambia, Ghana, Grenada, Guinea, Guinea-Bissau, Guyana, Haiti, Jamaica, Kenya, Kiribati, Lesotho, Liberia, Madagascar, Malawi, Mali, Marshall Islands, Mauritania, Mauritius, Federal States of Micronesia, Mozambique, Namibia, Nauru, Niger, Nigeria, Niue, Palau, Papua New Guinea, Rwanda, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Samoa, Sao Tome and Principe, Senegal, Seychelles, Sierra Leone, Solomon Islands, Somalia, Sudan, Suriname, Swaziland, Tanzania, Togo, Tonga, Trinidad and Tobago, Tuvalu, Uganda, Vanuatu, Zambia, Zimbabwe.

South Africa and Cuba are also ACP members. However, Cuba is not signatory to the Cotonou Agreement and South Africa has already concluded a Trade and Development Co-operation Agreement (TDCA) with the EU.

For more information:

http://europa.eu.int/comm/trade/index_en.htm

Ref: EC02-120EN
EU source: European Commission
UN forum:
Date: 17/6/2002

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